Basic economics tells us that a reduction in the demand for a commodity will lower the price. What happens when the price of oil goes down? High-cost oil production becomes uneconomical, which means that low-cost producers end up accounting for a greater share of the market. The lowest-cost producer of all is our friends the Saudis. Thus “energy independence,” if effective at all, would actually make America more dependent on “foreign” (Arab) oil.Unintended consequences, anyone?
FULL SPECTRUM CULTURE
By the grace of God, seeing life in color since 2003.
Corny.
Robert Bryce at Slate is skeptical of ethanol as an automotive fuel, and even more skeptical of the government subsidies thereof. Personally, I’m agnostic about the potential of ethanol currently, but I am always skeptical of government subsidies.
James Taranto also makes a good point about energy independence (3rd item):
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