“Maybe instead of investigating the relatively high price [in early 2002] of gasoline, the government should check into its own regulatory and tax policies that artificially reduce supply and raise prices.”
This piece was written in first-quarter 2002 when environmental requirements were pushing reformulated gasoline prices higher, and the wellhead oil boom associated with hydraulic fractionation and horizontal drilling was a decade away.
Today, the war against oil from the Net Zero movement–now joined by the Russia/Ukraine conflict–has sent prices to historically high levels. Still, a mostly free market has wondrously overcome impediments to make a “depletable” mineral plentiful and affordable for hundreds of millions of Americans each day.
Let’s go back to the debate 20 years ago, when gasoline was sold for $1.50 per gallon (about $2.50 today)….
Crude oil prices are at a 6-month high. …
Continue ReadingEd Note: This (re)post from early 2015 by economist Michael Giberson, formerly at Texas Tech University, is reprinted below. While generic to pricing of any good or service in any emergency, it applies to Joe Biden’s recent concern about oil-price ‘gouging’ and calls from the Democrat leadership for FTC investigations into the same.
“Higher prices would discourage over-buying and help ensure that useful consumer goods get distributed to more households, not just the households best able to rush to the store. Consumer sentiment against higher prices during emergencies, by discouraging a price response and encouraging shortages, tends to put the burden of the shortages on those consumers least able to run to the stores in emergencies.”
When consumer demand shoots up and supplies are limited, either prices must increase or shortages will result.…
Continue ReadingEd. note: This post excerpts energy and climate material from the Media Balance Newsletter, a fortnightly published by physicist John Droz Jr., founder of the Alliance for Wise Energy Decisions. The complete MBN for this post can be found here.
Greed Energy Economics:
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Renewable Energy Health and Ecosystem Consequences:
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Wind Energy — Offshore:
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Conservation groups call for federal review of offshore wind impact on ecosystems
Right whale defenders question energy industry donations
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Wind Energy — Onshore:
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