Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Display:
Not unrelated, Krugman's Op-Ed:Natural Born Drillers (March 15, 2012)
The irony here is that these claims come just as events are confirming what everyone who did the math already knew, namely, that U.S. energy policy has very little effect either on oil prices or on overall U.S. employment. For the truth is that we're already having a hydrocarbon boom, with U.S. oil and gas production rising and U.S. fuel imports dropping. If there were any truth to drill-here-drill-now, this boom should have yielded substantially lower gasoline prices and lots of new jobs. Predictably, however, it has done neither.

Why the hydrocarbon boom? It's all about the fracking. The combination of horizontal drilling with hydraulic fracturing of shale and other low-permeability rocks has opened up large reserves of oil and natural gas to production. As a result, U.S. oil production has risen significantly over the past three years, reversing a decline over decades, while natural gas production has exploded.

Given this expansion, it's hard to claim that excessive regulation has crippled energy production. Indeed, reporting in The Times makes it clear that U.S. policy has been seriously negligent -- that the environmental costs of fracking have been underplayed and ignored. But, in a way, that's the point. The reality is that far from being hobbled by eco-freaks, the energy industry has been given a largely free hand to expand domestic oil and gas production, never mind the environment.



There are three stories about the euro crisis: the Republican story, the German story, and the truth. -- Paul Krugman
by Migeru (migeru at eurotrib dot com) on Mon Mar 19th, 2012 at 09:02:48 AM EST

Others have rated this comment as follows:

Display:

Top Diaries

Leave UK <dot> DT

by Oui - Dec 4
57 comments

It's Tory Austerity Stupid!

by Oui - Dec 9
22 comments

Occasional Series