Mises.org: Let the Market Solve the Energy Crisis

[FrankRep]

Mises.org: Let the Market Solve the Energy Crisis


http://digg.com/business_finance/Let_the_Market_Solve_the_Energy_Crisis

 

[Conza88]

Mises never gets any digg action aye...

They should put a request on one of their articles, that proves to be beyond epic and thought provoking...

 

[Zippyjuan]

Oil producers are attempting to increase production. The thing is that the additional production takes time to bring on line and the costs of producing the additional oil are higher than the oil they are already producing. Saudi Arabia is activating a field that they found in 1957 and hope to yield 1.2 million barrels a day but they have to pump in 2 million barrels a day to get the oil out. Cheap and easy to extract sources are no longer available to tap. There is more oil- it is just getting progressively more expensive to get it out of the ground and into forms that can be used by industry or individuals. The market will eventually adjust- but not at price levels we have recently enjoyed.