The energy crisis happened because of optimistic projections – that gas to liquid and coal to liquid would not be needed until the technology had been improved and the cost brought down, that the dramatic growth in China and India could be accommodated by rapidly expanding conventional oil production. The political elite, unable to introduce a carbon tax because it would directly and visibly hurt people, proceeded to block coal …
Tag: price
Exxon blows it
Bryan Caplan wonders if oil prices are a bubble. When oil spikes abruptly, that means people made incorrect investment decisions – under invested in exploration, development, and gas to liquids conversion. A simple back of the envelope calculation tells me they are still under investing. Exxon recently abandoned gas to liquids plant that would be profitable if oil remains above forty dollars to fifty dollars a barrel. But if everyone …
Coal to oil is not under development
People are starving yet we still treat energy developers as criminals, rather than heroes.