Is There Really an Energy Crisis?

The authors of the Cato analysis assert that (1) the notion of ‘peak oil’ depletion of existing and future undiscovered reserves of oil is a myth. This is based on what they determined is “scant evidence and dubious models of how the oil market responds to scarcity.” That is very good news.

The report repeats what every Economics 101 student knows. (2) “Market forces, modified by the cartel behavior of OPEC, determine the key factors that affect oil supply and prices.” And now you know why a tiny news story about Saudi Arabia’s intention to pump more oil is an important indicator.
The truth is to be found in the Cato analysis and elsewhere if you can resist being stampeded to drastically alter our economy by schemes such as federally subsidized ethanol production or the nonsense of wind and solar energy. The good news is that the bad news is wrong.

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