Leave It To The New York Times To Gin Up A Downside To The American Oil Boom

Forbes ^ | April 29, 2013 | Christopher Helman,

[2ndDivisionVet]

In a clunky op-ed in the Sunday New York Times called “The Dark Side of Energy Independence,” Benjamin Alter and Edward Fishman, staffers at Foreign Affairs, see all sorts of negative geopolitical effects resulting from an American oil industry that has become so good at extracting fossil fuels that we’re set to enjoy energy independence from the the rest of the world.

In their eyes, America won’t get to enjoy this energy independence at all. Rather we will suffer the consequences of it. “That’s because America’s oil and gas bonanza will drive down global energy prices, undercutting the foundations of petrostates everywhere,” they write.

Alter and Fishman cite the head of commodities research at Merrill Lynch who has suggested that oil could fall to $50 a barrel within two years. This price is so low, they write, that it would destabilize already unstable autocracies like Bahrain and Saudi Arabia and even Russia, all of which rely on petrodollars to pay off restive elements and pacify the masses.....

[thackney]

Merrill Lynch who has suggested that oil could fall to $50 a barrel within two years

They don't have to worry from their perspective. If oil falls that low our boom will be over. The tight fields like shale are expensive and have a rapid decline rate. If we reach $50 we won't stay there long.

[TexasCajun]

Black Gold! ... Texas Tea !!

[crz]

Free market capitalism kinda works that way.

Payback is gonna be a real bummer for them.

[iopscusa]

PEAK OIL, PEAK OIL....let’s just let the market decide the supply/demand equations on energy.

[crz]

They tell me that they have to have about 68 bucks a barrel to stay on top. But, once pumping is started, many wells cant be shut down because they lose the well due to pressure reduction. Oh they can shut them down for a couple days, but after that, they have to get them going again.

[Cyber Liberty]

You mean the ones who hate us and want to kill us?

The same. Which explains why NYT has taken this gloomy position.

[ZirconEncrustedTweezers]

Yes, and ironically the alternative sources they’re pushing are such lousy substitutes for fossil-fuel energy that they instead make us MORE dependent on foreign oil.

[jpsb]

Wouldn’t it be terrible if the petrostates were unable to finance the expansion of Islam? Oh no we can’t have that. /s

[bray]

So if we become independent the Mooslips will really want to kill us?

Pray for America to Wake Up

[detective]

This is one of the stupidest article I have ever read.

The supposed reason for government supported alternative energy programs, CAFE standards for automobiles and all the other government imposed and taxpayer funded energy conservation programs is to make America energy independent.

Hundreds of billions of taxpayer dollars have been wasted and stolen to supposedly achieve energy independence.

None of the programs ever came close to working but the are still supported by the Obama Administration and the MSM.

Now that advances in oil and gas drilling and (horror of horrors) fracking technology is causing energy independence, it is called a terrible thing by the MSM.

None of this oil and gas technology was funded by taxpayers or the liars and fools in government who promote wasteful alternate energy programs.

Obama’s head of the Department of Energy said he wanted to see gasoline priced at $10 per gallon. Now that the price may go down the government liars and their agents in the MSM are upset.

[Cyber Liberty]

If we stopped buying oil, and the far East started using methane hydrates, the current oil producing nations would be hurt very badly.

[Dahoser]

It often seems New York liberals think their city should be the only developed part of North America - that everybody else should live on cute little farms and use horses for transport and labor and be no nuisance to their betters in Manhattan who are making the big decisions for them.

How can you say such a thing about the most inclusive group in the entire world?

[thackney]

The problem is the tight formations like our shale plays decline fast. If you are not drilling new wells, you won't be producing much oil after a while.

[Rusty0604]

But they don't want to admit that because the taxpayers are subsidizing those failed businesses owned by Obama donors.

[The Great RJ]

So let me get this right...according to the NYT the US should not develop its own oil resources which would give us cheaper energy prices as well as more jobs and economic growth and instead keep importing oil at inflated OPEC prices just so some despot oils sheiks can stay in power and fund terrorism against the US. Is this an episode of the Twilight Zone?

[Pollster1]

This could be catastrophic. Where would our enemies get the money to pay off the families of their suicide bombers if we didn’t buy oil from them. We need to increase federal aid to these unstable terrorist regimes, so they will not be hurt by our success.

[LucianOfSamasota]

This price is so low, they write, that it would destabilize already unstable autocracies like Bahrain and Saudi Arabia and even Russia, all of which rely on petrodollars to pay off restive elements and pacify the masses.

They really think this way. Which is how they justify paying off restive elements and pacifying the masses of unstable autocracies like US and UK with tax dollars and borrowed dollars. Anything to prop up the corrupt political class. Especially when you see yourself as one of them.

[TurboZamboni]

Local MPLS Star & Sickle does this at least once a week.

Nothing good to say about Bakken.

[American in Israel]

No need to drive down oil prices, just export for a dime a barrel less than Saudi Arabia. The house of Saud is running out of oil anyway.

Oh well, back to beating camels and marrying women, or was it the other way around? Not sure with Mohamads rules and all.

[American in Israel]

Yes, and ironically the alternative sources they’re pushing are such lousy substitutes for fossil-fuel energy that they instead make us MORE dependent on foreign oil.

It is only ironic if you think that is accidental. This article shows the NYT does not think that way. They have been using the "we are doing this for your own good" to destroy America for a long time now. Evil people have a hard time controling strong moral and independant people. So, things had to "Change".