The Market Will Handle The Oil Problem
Yesterday Ben Stein was lamenting the problems the world, particularly the US, has with oil. How can the stock market keep going up when the world oil supply is threatened? Maybe the market knows something Ben doesn’t. There is plenty of oil for the world and the US. It just depends on the price.
We heard this same lament in the ’70’s. You know what we found? We found oil shale in the Rockies and tar sands in Canada, reserves several times larger than was ever under the ground in Arabia. At the time it was just too expensive to extract. Guess what? It’s not any more.
This morning we hear that the price of gas in the US is attracting a record amount of gas inventory to our shores. Why am I not surprised?
Free market forces are the strongest economic force on the planet. Tin horns in Venezuela and Arabs with 10th century mindsets cannot stand against them. They may get their 15 minutes, but they will not even be postscripts in the economic history of our time.