Comment

New Boom Reshapes Oil World, Rocks North Dakota : NPR

5
Bob Levin9/25/2011 11:11:05 pm PDT

re: #4 ggt

Okay, let’s say that the basic data is true, that the US is able to bring more oil to the world’s market. And given the political stability in the US, the purchasing of our oil is more desirable than OPEC oil. Fine so far.

But as soon as we look at this from an economic viewpoint, things become quite murky. In order to develop the resource, the price must stay high enough. But the developed resource heading to market lowers the price.

Because I am not a recognized expert, I have a luxury. I can say, we have no idea what’s going to happen in the next two years, let alone five. Experts always have to know. Goldman could say the US could overtake other nations—because of the stability of the US.

Will this create an economic boom? It certainly couldn’t hurt, as the pool of US wealth begins to refill. We are still suffering from the shock and aftershocks of the burst housing bubble. It will still be years for this pool to refill. At most, just about every state, county, and city will be able to get out from under the revenue problems they now face. It would certainly be a good thing for the pool to fill from the creation of wealth rather than the simple printing of money.

For the consumer, we will still be in the same mode we are in today, and therefore the demand for alternative energy and new engines will not go away. Our labor force still needs to be changed, through training and immigration, and even the bringing back of trade schools as respectable alternatives to college prep. Perhaps folks can feel like they are swimming rather than just treading water, barely.

And if the economy improves, today’s right wing will disperse.

The fracking issue is serious. There are always things to be fixed as a result of the latest discovery and improvement.

In the short term, this might be okay.