Skip to comments.Paul Krugman Drills Dry Hole On Oil, Gas Fracking
Posted on 03/20/2012 3:55:18 PM PDT by raptor22
Energy: The economist at the newspaper of record defends the president's energy policy of Solyndra, Chevy Volts and algae while dismissing the oil boom on private lands as a small-town hiccup with no impact on price.
New York Times columnist and Keynesian economist Paul Krugman asks in a recent column why gas prices are rising if we are in the middle of a domestic oil boom. Doesn't the "drill, baby, drill" crowd claim, he argues, that prices will drop "if only we would stop protecting the environment and let energy companies do whatever they want"?
Without our domestic oil boom, created by reinvested energy company profits largely on private and state lands, gas prices would be worse. Keynes did not repeal the law of supply and demand, Mr. Krugman, and increased worldwide demand from places like China has helped keep prices up.
Oil prices are also affected by expectations of future supply and possible disruptions. One such disruption would be a war in the Middle East centered on Iran and the Strait of Hormuz while our campaigner in chief tries to persuade Israel to ignore the onrushing Armageddon promised by Tehran.
While Krugman acknowledges these factors, he insists that because oil is a global commodity, the effect on gas prices of letting oil companies "drill freely in the Gulf of Mexico and punch holes in the tundra" would be "negligible."
With a straight face, Krugman says "the oil and gas industry doesn't create many jobs," and he dismisses the Bakken shale formation's contribution to North Dakota's 3.2% unemployment rate as "only possible because the whole state has fewer residents than Albany."
Well, the unemployment rate in Albany County in New York state was more than double North Dakota's in December 2011 at 6.7% and at 8.2% for the entire state.
(Excerpt) Read more at news.investors.com ...
Cheap energy? [shrug] That's not going to help businesses across the country. [/s]
“Cheap energy? [shrug] That’s not going to help businesses across the country. [/s]”
Not going to trigger inflation, either. [/massive s]
“the oil and gas industry doesn’t create many jobs,”
Wow, that is a whopper. We need to go all Alinsky on these dupes. Ridicule, mock, etc. That is how the American Idol generation processes information, unfortunately.
This could be no clearer evidence that Krugman is unfit to call himself any kind of economist. Even Keynesians understand that prices are set at the margin and that expected future developments are factored into prices. An all-out drilling program would substantially increase supply in the relatively short term and create the expectation that more supply would be coming on line year after year. This would lead to a substantial decrease in energy prices.
What Krugman is really doing is giving the typical semi-literate “studies major” or “english major” liberal something to defend Obamalini with: “Oh yeah? What do you know? Paul Krugman, who is a Nobel Prize winning economist, says....”
Krugman is doing this deliberately, and it is completely dishonest.
Why does anyone read Krugman? All he does is lie.
3 letter Hole....and you say DRY???
With Nat Gas at $2.50 per million BTU, oil at $17.00 per million BTU; when are the energy compaines going to revisit coal & gas to oil processing?
They have to be thinking about arbitraging a spread like that.
Doesn’t the “drill, baby, drill” crowd claim, he argues, that prices will drop “if only we would stop protecting the environment and let energy companies do whatever they want”?
Lying turd. No one has ever said “stop protecting the environment”.
If Paul Krugman is such an economic genius, why doesn’t he save the NY Times?
The New York Times is a practitioner of advocacy journalism.(NBC news and the Guardian in England are other blatant examples) They have a very left wing perspective and report and slant “news” to coincide with their political preferences. Paul Krugman is a political polemicist and clearly is not to be confused with an honest economist. He actually advocated that Greece return to the drachma and still advocates increased deficit spending and debt. Even the Greeks laughed at him. His policies have led to misery and poverty. He will contort his position to support the Obama administration in any way possible. The problem is that his nonsense is repeated by the amen media and does confuse foolish voters.
Kruger? The guy who said Sarah Palin shot Gabby Giffords?
A communist economist. I don’t think Krugman has ever had an idea that didn’t involve forced labor and a 5-year plan.
No, you're thinking Freddy Kruger, Clinton's Chief of Staff.
Btw, Krugman, it’s “Drill HERE Drill Now” not “drill, Baby, drill”.
Krugman qualifies as a fracking idiot.
He’s also the most predictable economist out there. If “it” (whatever “it” is) benefits lefties, then he will conjure numbers out of thin air to show that we are idiots if we don’t do “it”.
He’s not worth reading.
How does Krugman and the NY Times benefit from providing cover and free campaign commercials for Democrats and the Administration?
Shut up and drill.