28 May 2012

The pipe dream of energy independence

RM sent me this great clip from the Daily Show. Watch how eight US presidents have promised -- and failed -- to deliver independence from "foreign" energy sources. Why is this? Because (1) we like using energy and (2) foreigners can sell us energy at lower prices than we pay for domestic supplies.

Will fracked natural gas end this cycle? Not until (1) it replaces oil for fuel in transport and (2) comes in sufficient volumes to have a significant position in the market.

Bottom Line: We are not "dependent" on foreign oil. We buy it because it makes our lives better. Get over the silly nationalist rhetoric and welcome your market overlords. (Oh, and note how there's not a SINGLE sign of falling demand for fossil fuels. Prepare for climate change too!) Enjoy your holiday!