NCPA - National Center for Policy Analysis

KEEPING OUR MOTOR RUNNING

July 20, 2007

Despite the claims of many in the media and special interest groups, the world is not running out of oil.  The real problem within the industry is overcoming the hurdles to development and use, and getting to energy resources and putting them to use, according to a new report by the National Petroleum Council (NPC).

The challenge, of course, is getting sane policies enacted.  That's not easy when special interests agitate constantly for policies that are anti-energy and anti-capitalism:

  • Environmental activists, for instance, needlessly obsess over CO2 and other emissions and put pressure on policymakers to limit use of fossil fuels even though they're now the most economical form of energy available.
  • In the United States, the NPC says an estimated 40 billion barrels of technically recoverable oil resources are either completely off-limits or are subject to significant lease restrictions.
  • Another estimated 11 billion barrels of oil resources and 51 trillion cubic feet of natural gas resources are restricted in Canada.

Further:

  • Politicians and governments across the world manipulate the energy markets for their benefit; for every barrel of oil controlled by a private company, state-owned companies control nine.
  • The United States is an exception, but Big Oil and Big Government are inextricably linked elsewhere across the globe.

Lastly, "peak oil" advocates -- who believe that oil output has peaked, or soon will, and an inevitable decline will set in -- have their own agenda.  It doesn't include raising output, because they're not in favor of anything that might prove them wrong, says the NPC.

Source: Editorial, "Keep Our Motor Running," Investor's Business Daily, July 20, 2007.

 

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