9.05.2006

Higher Prices = More Supply

The first of what I expect will be many similar announcements:

The Wall Street Journal reported Monday that the region where the well is
located could become the nation's biggest new domestic source of oil since the
discovery of Alaska's North Slope more than a generation ago.
The Journal
said Chevron and Devon officials estimate that recent discoveries in the Gulf of
Mexico's lower-tertiary formations hold up to 15 billion barrels' worth of oil
and gas reserves, a total that would boost the nation's current reserves by 50
percent.

But by all means, windfall taxes must be what’s best for consumers since peak oil is surely upon us.

1 comment:

Anonymous said...

I don't know how well prepared I am to discuss fossil fuels, but I would like to say something about peak oil. Technically you are correct about peak oil being bunk. As long as the sun is feeding plants & animals that in turn die & decompose, hydrocarbons will be here. To me, that sounds even worse than waiting for paint to dry, but I digress.

Do you really want to be squeezing the earth harder & harder just to get some oil out of tar sands? Because you can do it, but you can also start looking around for other sources of btus to make things move.