Methinks The Pilot is lost in the storm of propaganda:
In its comprehensive report "Energy Outlook 2030," the London-based BP asserts that the United States will be 99 percent energy self-sufficient by 2030, largely because of shale gas and oil produced by hydraulic fracturing.
Oil companies like BP have been pushing this meme for several years now, with the goal (like this author) of promoting the idea that we can drill our way to independence. But the reality of the global oil trade cuts the legs out from under this fantasy:
The U.S. currently exports less than one half of 1% of the amount of crude it imports, according to the Energy Information Administration, with all of the crude going to Canada.
If the mostly light, sweet oil landlocked in the U.S. reaches foreign markets, its price gap with Brent could significantly narrow, said Mike Kelly, senior analyst at Global Hunter Securities. That is because the potential number of buyers of U.S. crude would expand dramatically.
BP BP.LN -0.46%PLC, which already has a license to export U.S. crude oil, sends it to Canada for refining, said a person familiar with the company's operations.
Get it? Instead of cutting into our imports with US crude production, the traders and Big Oil are chomping at the bit to sell US oil on the global market. And the only way to stop that would be to go against the author's free market leanings and ban exports:
I normally prefer not to enter into an unwinnable discussion, since there or no way can I prove that post-Keynesian economics cannot deliver the results promised by the theory makers. Milton Friedman's free market model was believable, but Paul Krugman's deficit spending model is not. Remember economics is the dismal science and its benchmarks differ from those of a concise algorithm.
As to "dismal science", those pro-frackers who ignore environmental damage, and the incredible dollar-figure cost associated with such, are the absolute worst when it comes to balancing the pro-con debate. They dismiss it not because they actually believe fracking is safe, but because they know their argument will fall apart if they recognize the dangers.
And that is why lawmakers should ignore such cheerleading. It's what's missing that will eventually bite you in the ass.
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