Can't Drill Our Way Out Of It

| | Comments (0)

At first blush I didn't much care for the response that we "can't drill our way out of" high gas prices, but then I read the full text of Sen. Obama's remarks and was somewhat mollified. But then I thought for a moment, and I was back to thinking the remarks are wrong:

"If we reduce our consumption of oil, that's what will reduce gas prices, the presumptive Democratic nominee said in a one-on-one interview with The Post-Crescent during a campaign stop in Kaukauna.

"There's really no other way of doing it."

"We can't drill our way out of the problem because there's just a finite amount of oil out there and you have got increasing demand from countries like China and India."

Ok, so what's my beef. Well for one thing, back when I took my Econ 101 class from a Marxist I learned that both a decrease in demand and an increase in supply will lower cost. So to say that a decrease in consumption (i.e. demand) is the only way is flat wrong. But I was temporarily molified by his modifier that there's just a finite amount of oil out there. And then I thought and realized that there is just a finite amount of anything out there (wherever you draw your boundary since ultimately the Universe is a closed system) so really the only time that makes any sense is if you are currently up against a limit in your ability to increase supply.

Are we there? No way, not with all the oil in the US that is politically out of reach, and the refining capacity we don't have because of political considerations, and the inefficiency in the government oil producers which control most of the oil right now, we could increase supply without much difficulty. So in the short term, i.e. my lifetime, we can in fact "drill our way out of it". In the long term, the economics of something else will make more sense than oil and we will switch over to that. Again and again.

So while I wait with anticipation for solar energy to get cheap and efficient enough to power all our energy needs, I say drill away.

Leave a comment

About this Entry

This page contains a single entry by Kevin Murphy published on June 13, 2008 12:02 PM.

Civic Hubris or Keep Your Opinions To Yourself was the previous entry in this blog.

Is That Much Straw A Fire Hazard? is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.


St. Louis Blogs:

J Bowen
Christopher Johnson
Charles Austin
Random Observations
Brian J Noggle
Shelley Powers
Gateway Pundit
Listless Lawyer
Jim Durbin
Timothy Birdnow
Diane Meyer
Marijean Jaggers
Scott Ginsberg
Steve Boriss
St. Louis Bloggers
St. Louis Blogs . Org
Randall Sherman
Urban Review STL

Missouri Blogs:

John Combest
Blue Girl, Red State
Another Rovian Conspiracy
The News Buckit
The Source
Fired Up! Missouri
Susan "Farmgirl"

Favorite Blogs:

James Lileks
Glenn Reynolds
Rich Galen
Megan McCardle
Scrapple Face
In The Agora
The Brothers Judd
Geitner Simmons
Science Blog
Winds of Change
Da Goddess
Justin Katz
Fran Mason
Phil Carter
Greg Costikyan
Tom McMahon
Kevin Aylward
Rand Simberg
Michael Totten
Belmont Club
News Busters
Mark Ciocco
David Weinberger
Tom Maguire
Jon Henke & McQ (plus Dale!)
Kevin Murphy The Other
Craig Henry
Brian Tiemann
Crooked Timber
Charles Johnson
Busy Mom
Jason Van Steenwyk
INDC Journal
Eamonn Fitzgerald
John Little
King of Fools
Perish the Thought
Jeff Harrell
Michael Yon
Ed Driscoll
George Roper
Jeff Goldstein
Mark A. R. Kleiman
David Opderbeck
Bob Somerby
Ben Witherington
Creative Bits
Mark Daniels
Michael Spencer
Think Sink
The Brussels Journal
A J Strata
S K Murphy
Joe Carter
John Hawkins
Back Talk
Joe Sherlock
Mark Perry
Daniel Dilger


Charles Le Kraut Martel
Victor Davis Hanson
Mark Steyn
Thomas Sowell
Malcolm Gladwell
Robert Cringely
John Carroll
Paul Graham
David Nicklaus

My Interests

The Paralyzed Veterans of America
The American Anti-Slavery Group
Wayside Gardens
The Alliance for the Separation of
School and State

MacSurfer Daily News
Urban Legends
Diablo II Net (Unofficial)
The Word Detective
UN Documentation Center
Cub Scout Pack 787
Baloo's Bugle (Cub Scouts)
Wounded Warrior Project
Operation Iraqi Freedom
Defense Industry Daily


Technorati search

» Blogs that link here