The current oil spill, like the financial crisis before it, has given ammunition to those who believe that the free market is dangerous and that deregulation leads to crises. President Obama, in his June 15, 2010, address to the nation, specifically blamed the lax oversight of BP’s operations on a “failed philosophy that views all regulation with hostility — a philosophy that says corporations should be allowed to play by their own rules and police themselves.”
This gets to a core debate between Left and Right[1] but overlooks the real nature of the problem. For many on the Right, government is the problem, while many on the Left see government as the solution. (This holds true in many different policy areas, from health care to industrial policy, among others.)…
Continue ReadingIn a raft of articles on this blog and elsewhere, the surge in U.S. gas production–due mostly to rapidly increasing output from shale formations–has been touted as a key savior of domestic drillers and consumers.
At the same time shale gas has been more than a headache for LNG exporters and pipeline monopolists, for some it threatens to become a nightmare – softening prices, competing with pipeline supplies, driving LNG demand to spot markets – generally making a pain of itself, from the viewpoint of the gas industry’s would-be GOPEC.
By providing a plentiful alternative source of supply for the world’s largest gas market, the U.S., shale gas has reduced wellhead netbacks throughout the Atlantic Basin. International reverberations have been dramatic. Even the Russian Bear, feeling the hot breath of the market, is softening its pricing terms for international gas sales.…
Continue ReadingA new study has concluded that shifting climate is leading to shifting vegetation patterns across the globe.
My response to this announcement was “Terrific! The biosphere was responding the way it should to changing conditions.”
To my surprise, this enthusiasm wasn’t shared by the study’s authors. In fact, lead author Patrick Gonzalez seemed downright glum:
“Globally, vegetation shifts are disrupting ecosystems, reducing habitat for endangered species, and altering the forests that supply water and other services to many people.”
A very negative spin on what should be cause for celebration.
Despite how much we, humans, have sliced and diced the landscape, natural systems are still doing their best to respond to climate changes—just like they always have.
The only way to see this in a negative light would to hold the belief that everything that humans do to the world is bad.…
Continue Reading