In 2008 Sarah Palin and other Republicans and conservatives recommended that we “Drill, baby, drill!” in order to get more American oil. The Leftist Media and the environmentalists and the Democrats laughed. They said, “We can’t drill our way out of this! There’s not enough oil! Didn’t you know that the world is running out of oil?! Sarah Palin is crazy!”
In fact, friends, “Drill, baby, drill” was 100% correct and today we are seeing the result, while the environmentalists are being exposed as the crazy ones. The world is entering a new era of oil abundance and it didn’t take long to get it. The advanced oil industry technology of ‘fracking’, along with others like directional well drilling and accurate location of oil and natural gas deposits, is bringing us an energy cornucopia that was not thought possible just 30 years ago.
Since the dawn of the Modern Oil Age when the first well was drilled in Pennsylvania USA in 1859 we have seen ever-increasing global supplies. The world currently has 12 to 16 trillion barrels of known/estimated oil reserves but only has used 1 trillion barrels in the last 156 years. The environmentalists have warned us, however, that the world only has a limited supply of oil and is running out. Then they have used their own policies to curtail supplies and push up prices.
Nonsense. The world has vast carbon energy supplies (oil, oil shale, oil sands, coal, natural gas and methane hydrates (look them up. It is a fascinating subject.)) that will last many thousands of years; most supplies have not even been conceived of, detected, calculated, estimated or discovered. For instance nobody even knew 20 years ago about the massive Marcellus Shale natural gas formation in the Northeastern United States which holds up to 600 trillion cubic feet of gas. ‘Fracking’ on just a small part of Marcellus today is keeping natural gas prices at record lows. At the same time the nation of Israel recently discovered that it may have more oil than Saudi Arabia in underground oil shale formations. In short, oil and natural gas are all over this planet in untold quantities.
The process of ‘fracking’ is proving stunningly productive. This “hydraulic fracturing” of underground rock formations was developed back in the 1930s when oil drillers first started dropping explosives down to the bottom of well holes. This blew up and loosened the rock and allowed much more oil and natural gas to flow to the well hole for extraction.
Now “fracking” is bringing us low energy prices for both oil and natural gas through increased supplies. Natural gas has been cheap for the last five years, and suddenly crude oil prices have fallen in spectacular fashion. Meanwhile the Leftist Media are doing everything in their power to hide the real reason for the price drop.
‘Fracking’ is not only bringing us newly low gasoline prices but is leading to lower overall costs for all products and services because everything that we buy and use needs to be grown, harvested, processed, manufactured or transported using energy. The environmentalists don’t want low prices, however. They want high energy prices because they would induce us to use less. This has been their strategy for decades.
Except that high prices hurt us all economically and also hurt the overall economy by needlessly draining away capital for energy. But these environmentalists are heartless people. They don’t care about the terrible effects of high energy prices. They care only about two things – that high energy prices make expensive “green” energy seem reasonable in comparison; and that they then get rich and powerful on “green” energy. There are four other important things to consider about ‘fracking’:
First and foremost ‘fracking’ is not only demolishing the “green energy” fiction that the world is running out of oil but ‘fracking’ is going to dismantle the OPEC energy cartel that has been abusing Americans for decades. It also is undermining the strong-arm leaders of Russia and Venezuela who have been relying on high oil prices to maintain their power.
Second, ‘fracking’ is more expensive than ordinary drilling. ‘Fracking’ involves not just explosives but a complex system in which ‘fracking fluid’ (water, sand, chemicals) is pumped into the ground under pressure after the rock is fractured. This high cost is being noted over and over as a big drawback of ‘fracking’. Indeed now an interesting thing is happening – low oil prices brought on by ‘fracking’ are threatening the higher-cost practice of ‘fracking’ itself. This is leading to a big slowdown in the ‘fracking’ industry in places like North Dakota.
But this is OK because ‘fracking’ is acting to cap oil prices like a speed limiter on an engine. Now ‘fracking’ is a permanent tool that we can deploy whenever necessary to keep a lid on energy prices, like turning on the limiter so that the engine does not run too fast (oil prices don’t get too high). Wonderful. We will not see the equivalent of $100 per barrel oil again if we are allowed to use ‘fracking’. In fact ‘fracking’ today is making oil half that price. Great.
Third, ‘fracking’ is extremely efficient. If we can get from one ‘fracking’ well what we used to get from many standard wells then that is a good thing. Efficiency is always beneficial to mankind.
Fourth, ‘fracking’ in 2014 produced more than $200 billion worth of domestic oil. That money is now staying in America and stimulating our economy, not going to Saudi Arabia or other foreign producers. This is the big reason for our good economic numbers in recent months.
The British newspaper The Independent recently posted an analysis of ‘fracking’ and falling oil prices. Here are excerpts from Independent.co.uk with a Nikitas3.com comment after each:
Independent.co.uk writes: The collapsing oil price that is reshaping the global economy could derail the green energy revolution by making renewable power sources prohibitively bad value, experts have warned. Oil tumbled below $60 a barrel for the first time in more than five years yesterday – a fall of 44 per cent since June. It is forecast to fall further. A new “era of cheap oil” would be good news for consumers and motorists – but analysts say the consequences for politics, industry and the climate could be even more radical. Nikitas3.com comment: Notice that it says that “experts have warned” us about lower prices. These “experts” all reflect the “green” point of view. In fact these lower prices are helping most of the world’s people. This “warning” reveals volumes about these “experts” and their arrogant view of the world. The reason that they are so concerned about falling prices and abundant supplies is because they are losing money and power as oil prices fall and everyone else prospers.
Independent.co.uk writes: “Renewable energy subsidies have been mostly sold to the public on the basis of the economic benefits,” said Peter Atherton, an energy analyst with Liberum Capital. “But the economic arguments hinged on the idea that fossil fuel prices would get more expensive, while expensive renewable subsidies would be able to come down over time. That’s looking doubtful now.” Nikitas3.com comment: This is precisely why environmentalist have been seeking to stop ‘fracking’ and other advanced measures to increase the oil supply. They want energy prices to stay high to make themselves rich on windmills and solar panels.
Independent.co.uk writes: Anne Robinson, director of consumer policy at the uSwitch price comparison website, said: “More subsidies are likely to be needed [for green power] as the gap between the cost of fossil-fuel power and renewable power gets bigger.” The extra subsidies would be borne by households in the form of higher energy bills. Nikitas3.com comment: Indeed. This is why energy prices go up – because of “green” policies. Prices then come down with realistic and rational policies promoted by the oil companies and by free markets, and explained by Nikitas3.com. Now here is a word on the subject of Obama’s proposal for “free” community college:
As if the Welfare State has not failed for 50 years Obama wants to expand it. He has proposed “free” community college. It is estimated that this proposal could cost taxpayers up to $34 billion every single year. This plan should never see the light of day in Congress.
This proposal is 1930s socialist demagoguery but then again socialists never stop with their propaganda. That Obama would use this old canard that something is “free” is appalling. But then again Obama always appeals to the lowest common denominator, with the help of his media cronies.
Two groups will benefit from this scam: The students who are getting “free” college, and the lazy Obama-loving socialists who teach at and run the community colleges. Because community colleges are government institutions that are merely extensions of K-12 public education. They are state-funded, but they also have tuition. If the tuition is eliminated under the Obama plan it is going to be fully funded by the taxpayer who will shoulder the bill for the “free” college. So no college professors will miss any meals, rest assured. In fact Obama’s plan will guarantee a flow of cash to these colleges. This is another part of Obama’s strategy.
Obama will then be portrayed as generous while Republicans will be vilified as “stingy” and as not wanting kids going to college. This is your usual abhorrent class-warfare strategy, but Obama needs to do something flashy to counter the massive GOP victory in the November elections so he has simply piled on the bombast as high as he can.
This plan also will encourage more and more students to start work on useless college degrees when millions of college graduates can’t find work today with their useless degrees. We also will see millions of unqualified people going to the community colleges because it is “free” and because going to college is better than sitting around all day doing nothing since you are unemployed in Barack Obama’s horrible economy.
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