Monday, February 15, 2010

Recovery? Fuggedaboutit

The economy may struggle towards recovery.

But Obama's planted a 2x4 under the gas pedal.

A new report says U.S. oil-and-gas drilling bans will increase consumer energy costs and decrease cumulative U.S. GDP by $2.36 trillion over the next two decades

That’s an average annual GDP drop of roughly a half a percent.

The report, commissioned by the National Association of Regulatory Utility Commissioners...

At least on paper that should be a non-partisan group.

HT: Ace


J. Strupp said...

We'll see but I doubt it.

This is like the steel mills telling us that prices are going up because over half the mill furnaces in North America are turned off.


The problem ain't the supply of oil and gas.

Dad29 said...

I grant you that demand is important.

But developing oil-shale, or oil-wells, is a 2-week project, either.

Worse: the very real possibility that EPA will create a carbon tax-by-regulation. Same, or worse, effect and STILL no ready-to-go source of petroleum.

J. Strupp said...

But we ARE currently developing oil and shale deposits. Frac. technology and directional drilling has made this kind of oil field development relatively cheap, regardless of the recent drop in oil prices or the threat of government action.

One of my largest customers happens to be in the Bakken oil patch in northwestern North Dakota and this area is booming with development of oil and gas deposits. All in the midst of a major recession, cheap oil prices and government "threats" of cap and trade.

Dad29 said...

Some is nice.

ALL is better. $2.36Tn is a whole lotta money.