Posted tagged ‘Shale Revolution’

Economic Forces Eventually Win: Let’s Look At Oil

March 2, 2016

Mark J. Perry’s recent post at Carpe Diem Blog titled; Some Charts And Updates On America’s Amazing Shale Revolution, It’s Not Over Yet, shows how economic forces are always in play even when we think they’re not. When the price of oil was over $100 dollars a barrel and gas was close to $4 a gallon in 2014, who thought oil would get down to $30 dollars a barrel and gas would sell for under $2 a gallon?

The law of supply and demand states that more will be produced at a higher price than a lower price. Higher oil prices made fracking economically viable. The American shale industry took off, in spite of the Obama administration making oil rich government land off limits to fracking. The shale industry started drilling on private land. Even though a portion of the investment in the shale industry may be an artificial bubble, thanks to the fed printing money, the reality is that fracking is now viable at lower and lower prices per barrel. Some marginal companies are going bankrupt because of the lower prices, but you can rest assured these evil oil companies won’t be bailed out by our green energy loving government, which is good. These marginal producers will be purchased by more viable companies and whatever malinvestment the Fed created will be purged from the shale industry. The housing bubble should have been allowed to find the bottom, instead of the Fed pumping money to keep the correction from happening. This is what should have happened to GM instead of being bailed out by Bush and Obama.

Economic forces are always in play even though government tries to keep them at bay through regulation, taxes, or money printing. Even though it may take some time, economic forces always win. Just ask the leaders of the former Soviet Union.

Here are some charts and quotes from Mark J. Perry’s article (click above).

US oil production is almost up to early 1970s levels.

oil

US natural gas production is at all time highs.

natgas

Low oil prices have had a positive economic impact, even though the Wall Street experts say the low prices are bad. In fact the Obama administration couldn’t claim any US job growth if it wasn’t for the jobs created in the fracking industry. And the Obama did everything it could to halt fracking. Excerpt from the article.

“The plunge in energy prices is driving a U.S. building boom for plants that turn crude oil and natural gas into motor fuels, chemicals and fertilizer. Energy companies proposed or received approval to build 140 petrochemical projects in the last five years as falling oil and natural gas prices made it cheaper to refine and process the raw materials…

We are becoming more energy self sufficient. The OPEC Cartel has been brought to its knees by the American shale revolution.

netoil

Excerpt from the article:

“America’s Amazing Shale Revolution is arguably one of the most remarkable energy, economic, entrepreneurial, and technological success stories in history. The charts, data and reports above help to tell part of that remarkable story.”

“And make no mistake, the shale revolution is not going away, it’s here to stay and will be part of the global energy landscape for a long time. Despite a temporary slowdown and setback in domestic oil production in response to low oil prices, America’s bonanza of shale resources won’t vanish, but will remain available and accessible when needed…. America’s petropreneurs….stand ready to start drilling shale oil again as soon as oil prices rebound back above $40 per barrel. And the shale producers will come back leaner and meaner than ever in the upcoming Shale 2.0 period, thanks to ongoing technological improvements in drilling and extraction technologies, less costly and shorter drilling times for new wells, and increases in the initial shale output flowing from new wells…

America’s shale revolution isn’t going anywhere. In fact we are probably at the end of the beginning of the revolution.

Related ArticleFree Market Fracking Trumps Government Solutions When It Comes To Producing Energy, at austrianaddict.com.

Related ArticleWind And Solar Energy Is Diluted and Intermittent, Which Means More Costly, at austrianaddict.com.

Must Reads For The Week 7/18/15

July 18, 2015
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Minimum Wage Impact: Garment Industry Eyes Move Out Of L.A. City Limits, at economicpolicyjournal.com. This isn’t a shock to us. Less is demanded at a higher price than a lower price. This includes labor.

Retailers Expected To Raise Prices Or Cut Jobs To Pay For Minimum Wage, at thegardian.com. Even in a more socialist country like Great Britain economic forces are always at work. They can’t be legislated or wished away even with the best of intentions.

Judge To Bakers: No Free Speech For You, by Rachel Lu, at thefederalist.com. Not only where the owners of the bakery fined $135,000 because they wouldn’t bake a wedding cake for a same-sex marriage. They were also told by the Judge they were told they were not allowed to continue to state their intentions to abide by their moral beliefs. This is what happens when our constitution is bastardized to mean protecting group rights instead of individual rights. Our constitution protects the individual from coercive government.

Wallingford Police Look Into Complaint About Nazi, Confederate Items Sold At Flee Market, at myjournalrecord.com. Someone called and complained that they were offended that these items were being sold. I’ve looked in the constitution and I can’t find where is says an individual has a right to “not” be offended. This and the story above show that we are becoming a nation with zero mental toughness. When you whine about someone offending you, you give that person power that they wouldn’t have if you weren’t offended.

“Chattanooga Shootings: Why Should We Make It Easy For Killers To Attack Our Military, by John Lott, at johnrlott.blogspot.com. Look at the gun free zone sign on the front door of the military recruiting station in the picture on this post. One thing we know for sure, the sign didn’t stop the shooting. The question is did it provide an easy target for the terrorist? Why would you advertise that don’t have the means to stop an attack?

Taxpayers Have Now Spent $3.5 Million To Find Out Why Lesbians Are Obese, by Elizabeth Harrington, at freebeacon.com. This study is examining why three-quarters of lesbians are obese, but gay men are not. Why do we need to spend all this money to know why anyone is obese. I’ll give you the reason for free. An individual is obese because he chooses to take in more calories than he burns off. If it was more important for him to be thinner he would choose differently.

38 Ways College Students Enjoy ‘Left Wing Privilege’ On Campus, by Tal Fortgang, at time.com. College is just the next indoctrination camp your kids attend after their initial brainwashing in grade school and high school.

Saudi America” Has Been The World’s Largest Petroleum Producer For 29 Months In A Row, by Mark J. Perry, at Carpe Diem blog. Where would the American economy be without the shale revolution?

Youth Unemployment In The SPIG, at economicpolicyjournal.com. Youth unemployment in Spain, Portugal, Italy, and Greece is reaching an average of 45%. This is how you produce a generation of people who will vote for a centrally planned economic socialist system. Unfortunately they can’t vote economic forces out of existence.

An “Austrian” Economist’s Advice For Greece And The EU, by Richard Ebeling, at epictimes.com. This is our heavy lifting for the week. Top down central planning is the problem, and individual liberty is the solution. Greece is just the most recent experiment with socialism.

 

Must Reads For The Week 6/27/15

June 27, 2015
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

I’d Never Make It As A Politicians Aid, by Chris Rossini, at targetliberty.com. Looking at the minimum wage from a different prospective. Logical consistency by politicians is not a requirement for holding office.

Instead Of Killing America’s Shale Revolution With Increased Production, The Saudis Have Jump Started Shale 2.0, by Mark J. Perry at carpediemblog. We are the most productive and innovative people on the planet. Saudi Arabia doesn’t know who they picked a fight with. The only entity that can snatch defeat out of the jaws of victory is our Federal Government.

Jeff Immelt, The Jobs Czar From Hell Threatens To Off-Shore Jobs Unless Ex-Im Bank Is Extended, at davidstockmanscontracorner.com. The Export-Import bank finances big corporate exports to make them competitive abroad. What are the odds of congress letting the Ex-Im renewal date go by the wayside? Slim to none. Your tax dollars being used to prop up big business. This is nothing more than corporate welfare, and Immelt is a welfare pimp.

A Chip That Mimics Human Organs Is The Design Of The Year, by Liz Stinson, at wired.com. Organs on chips? These chips mimic human organs and decreased dependence on animal testing and decreases the time and cost of developing drugs.

Scientists Invent Artificial Leg That Allows Amputees To Feel Real Sensations, at odditycentral.com. The title says it all.

Vatican Bans Skeptical Scientist From Climate Summit, at targetliberty.com. I guess the Pope didn’t want his “infallibility” challenged.

Buying A Car Could Soon Be A Thing Of The Past, And Ford Is Desperate To Find Out What’s Next, by Drew Harwell, at washingtonpost.com. Ford is thinking out side the box about the future of sales.

5 Eye Opening Facts And Figures On No Knock Warrants, by Sean Piccoli, at newsmax.com. Only 7% of no knock warrants were for hostage crisis, barricades, or active shooters. The other 93% probably shouldn’t have been issued.

Myths Of American Gun Violence, by John Lott, at nydailynews.com. “After adjusting for America’s much larger population, we see that many European countries have higher rates of death in mass shootings.” John Lott is the go to guy on gun statistics.

Greece Illustrates 150 Years Of Socialist Failure In Europe, by Patrick Barron, at patrickbarron.blogspot.com. Excerpt from the article, “Socialism will not work, whether in one country, a multi-state region such as Europe, or the entire world. Ludwig von Mises explained that socialism is not an alternative economic system. It is a program for consumption. It tells us nothing about economic production.”

Monty’s Musings, at economicnoise.com. A few examples. – “Government can’t create prosperity, but it can destroy it.” -“Most academicians have been educated well beyond their level of competence.” – “Nothing moral can be achieved via coercion.”

LETS FINISH WITH SOME LAUGHTER

Abbot And Costello Explain The Unemployment Situation, at zerohedge.com. Using the “Who’s on first” schtick to explain how Government calculates the unemployment rate.

This clip of Carnac  brings back good memories of Johnny and Ed making me laugh. This has nothing to do with anything other than laughter.

 

 

 

Must Reads For The Week 11/01/14

October 31, 2014
The pen is mightier than the sword...

 The pen is mightier than the sword… (Photo credit: mbshane)

Over 214,000 Doctors Opt Out Of Obamacare, by Barbara Boland, at cnsnews.com. I’ve said this before: Obamacare will create a true free market healthcare system, and a government-run healthcare system. The tax payer will be on the hook for both.

Quarantine Backwardness Continues..., by Chris Rossini, at target liberty.com. Returning troops from Africa will be quarantined for 21 days. Civilian workers  for the defense department will not. I think I would believe the military knows what it is doing when it comes to life and death decisions.

Police Infuriated About New Device That Warns People When A Cop Is Near, by John Vibes, at thefreethoughtprogect.com. The police aren’t happy that generating revenue will not be as easy. People don’t take to kindly to laws that they think are amoral.

Don’t Get Pulled Over By The PA State Police, at theburningplatform.com. It’s almost hard to believe that this story of police abuse is real, but it is. Power corrupts and absolute power corrupts absolutely.

Ex-CBS Reporter: Government Agency Bugged My Computer, by Kyle Smith and Bruce Golding, at nypost.com. If this is what the left will do to a main stream reporter. It’s not hard to believe that the IRS would target individuals and groups that want to shrink Government.

America’s Shale Revolution Has Elevated The US To The Worlds No. 1 Energy Superpower, by Mark J. Perry, at carpediemblog. This has happened in spite of the bureaucrats in this administration trying to stop hydraulic fracturing. What would the economy look like if they had been successful at shutting down fracking?

What’s Weirder Than Gas Prices Tumbling? Not A Single Politician Demanding To Know Why, by Mark J. Perry, at carpediemblog. Politicians are always looking to demonize evil speculators when the price goes up. What about the evil speculators when the price goes down?

Liberals Propose Social Security-Like System To Transition To Green Economy, by Nathan Schacht, mediatrackersorg. Central planners think they are smarter than the market. As Robert Bradley has said, “ When Government tries to pick losers and winners, it typically picks losers. Why? Because in a free market consumers pick winners to leave the losers for Government.” Read my article, Government Investment? Or Government Waste?, to see how green energy has failed.

Energy Independence, by Robert Bradley, at masterresource.com. Free markets, as hampered as they are by Government edicts, are the only way that scarce resources can be rationed economically.

Confessions Of A Wheel Chair Nazi, by Victor H. Ward, at targetliberty.com. Just another example of the unintended consequences of legislation. Central planners aren’t as smart as the spontaneous order created by individuals cooperating and competing in free markets.

Random Thoughts, by Thomas Sowell, at jewishworldreview.com. Thomas Sowell is always a must read. Here is an example:

Too many intellectuals are too impressed with the fact that they know more than other people. Even if an intellectual knows more than anybody else, that is not the same as saying that he knows more than everybody else put together — which is what would be needed to justify substituting his judgment for that expressed by millions of others through the market or through the ballot box.”