PeakTrader.com

[administrator]

PeakTrader said...

Jon, here's another view:

76 Percent Of Voters Think Higher Energy Taxes Could Equal Higher Pump Prices
March 22, 2012

A true all-of-the-above energy strategy would include greater access to areas that are currently off limits, a regulatory and permitting process that supported reasonable timelines for development, and immediate approval of the Keystone XL pipeline to bring more Canadian oil to U.S. refineries.

This would send a positive signal to the market and could help put downward pressure on prices.

API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America's energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested more than $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.

"Suggestions that the U.S. has meager domestic energy resources, or lacks the ability to safely produce greater amounts of oil and natural gas are wrong"..."The United States...has very substantial resources because of technological progress in offshore development and in the development of shale oil and natural gas onshore."

My comment: Because of Peak Oil, we'll soon need to run even faster just to stay in place.

******

Technology and deregulation can increase U.S. oil production significantly:

U.S. report: Oil imports down, domestic production highest since 2003
March 12, 2012

"According to the study (by six federal agencies), the United States reduced net imports of crude oil last year by 10%, or 1 million barrels a day. The U.S. now imports 45% of its petroleum, down from 57% in 2008.

Imports have fallen, in part, because the United States has increased domestic oil and gas production in recent years.

U.S. crude oil production increased by an estimated 120,000 barrels a day last year over 2010.

The report credits administration policies for the improvements. It cites initiatives such as the higher fuel efficiency of passenger cars, the jump in renewable energy output, and improved weatherization of 1 million homes.

But independent analysts attribute much of the fall in oil imports to slack U.S. demand in a still-anemic economy. And to a certain degree, they say, the boost in domestic oil and gas production is the result of decisions energy companies made during the George W. Bush administration to develop key reservoirs."

******

The economic benefits of technology and deregulation can exceed the external costs of "environmental degradation," in more and greater ways than some believe, particularly with peak oil and vast idle resources.

******

The U.S. can ramp-up drilling, including in Alaska and in the Gulf of Mexico to add e.g. 1 million barrels a day instead of 120,000 barrels a day:

EIA Expects Higher U.S. Crude Production
Mar 7, 2012

"U.S. crude oil production increased by an estimated 120 thousand bbl/d to 5.60 million bbl/d in 2011.

A 390-thousand bbl/d increase in lower-48 onshore production in 2011 was partly offset by a 40-thousand bbl/d decline in Alaska and a 230-thousand bbl/d decline in output in the Federal Gulf of Mexico/GOM.

The rise in production is driven by increased oil-directed drilling activity, particularly in onshore shale formations."

******

One of the by-products of capitalism, in a market economy, is efficiency. So, we can afford higher living standards, labor standards, and environmental standards.

However, excessive environmental standards, like excessive labor standards (e.g. a $20 minimum wage) is more destructive than constructive.

******

"Is a Capitalist market economy more efficient than a Socialist market economy?"

Only if you want to create real wealth, rather than pretending to create real wealth.

******

Socialism has undesirable effects, including disincentives to create value and incentives not to create value.

Winston Churchill:

“The inherent vice of capitalism is the unequal sharing of blessings; the inherent virtue of socialism is the equal sharing of miseries.”

******

Ron, that Foxconn example in your link "Prove Me Wrong" is not an example of capitalism.

It's an example of ignorance of China's macroeconomy, crony-capitalism in a communist country, and (poor) labor standards.

In a capitalist system, living standards, labor standards, and environmental standards would all rise at faster rates.

******