It’s only a matter of time before President Barack Obama’s vast popularity runs aground on his energy policies. In the name of saving the planet from global warming, he has delayed new oil drilling, an action that will have major political repercussions once the world economy recovers. Instead of using some [of] the stimulus billions to produce more gas and oil, Obama’s wild-eyed supporters dream of “renewable” energy derived from corn, wind, sunshine, and even grass.
With the appointment of extremists like climate czar Carol Browner and science adviser John Holdren, Obama has placed his administration’s environmental policy in the hands of radicals. Interior Secretary Ken Salazar proposes replacing oil and coal with windmills. Yet Barron’s recently reported that America would need to build 500,000 giant offshore windmills and transmission lines to produce Salazar’s specified 1,900 gigawatts of electricity. In contrast, oil and gas drilling could provide hundreds of thousands of solid, well-paying blue-collar jobs. . . .
All of these things are happening at a time when natural gas is abundant and cheap. The new technology of horizontal fraccing has made it economically feasible to drill into vast shale deposits in many states, even famously difficult ones like Michigan and New York. Many cars could run on natural gas, much like many buses do already. On a recent trip to Peru, I learned that most taxicabs have been converted to natural gas for a cost of about $1,000 each. New technologies continually revive old oil and gas fields and make new ones economically viable. So it’s little more than socialist Malthusianism to argue that the world is running out of cheap energy. Science will always find and harness new sources.
History suggests that markets will always find a cheap source of energy.
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