Physical scientists are prone to viewing hydrocarbons as a fixed quantity. Being fixed, this volume must deplete with production. Extraction costs and thus selling prices must rise. The crisis is only a matter of when [“What will we do when the pumps run dry?” asked Paul Ehrlich and Anne Ehrlich in 1974 (The End of Affluence (p. 49)] . Physicist John Holdren is no exception to this view.

Reality is quite different from the hard science formulation, however. In a business or economic sense, mineral resources are not fixed, known, or depleting. They are created by entrepreneurship (“resourceship”) in a market economy where incentives are present and technology improves. Mineral quantities can and do expand over time as shown by time-series data of estimated world resources.…

Mel Brooks, in his classic comedy The Producers, schemed to make money by over-subscribing shares in a sure-to-fail play. Unfortunately for his character, the play became a smash hit, and all the investors wanted their payouts. Since he had sold well over 100% of the interest in the play, he was in a bit of a pickle.

And so it is with natural gas. Clean, easy to use, abundant—natural gas is everyone’s choice for our energy transition away from oil and coal for power generation, industry, homes, and now transportation. Enter oilman-turned-wind-promoter T. Boone Pickens, with a proposal to move U.S. heavy trucks strongly toward natural gas fuel (as compressed natural gas, or CNG). And to enable the offset, the electricity that is currently generated by such gas (about a 21% market share of power generation, according to the Energy Information Administration’s Annuel Energy Outlook 2009, Table 8) would be supplied by new wind farms, built mostly in the Plains States.…

Many in the energy business, whether or not they support President Obama’s positions on energy and the environment, are likely to think, “Look, the US is a big ship. It cannot be turned around in a couple of years, and even if they tried, you can right the course at the ballot box.”

Actually, you can’t. The United States is still a nation of laws, and without strong political support, the acts of one administration cannot be easily reversed or undone by the next.

But there is more to the story than simple inertia and political head-counts. Each new administration enters with an agenda of positive goals. Spending time and political capital on your predecessor’s agenda can often find its way to the bottom of the to-do list. Moreover, a new president has only a limited circle of advisers.…

A clear strategy is emerging from the Obama administration’s recent moves on the energy front: not-so-slow energy strangulation.

The pattern is hard to miss:

To ensure that nuclear power does not grow (even while claiming he supports it), President Obama is de-funding the long-studied Yucca Mountain Repository, increasing uncertainty about waste disposal and scaring off potential investors.

To guarantee that coal becomes too expensive to burn (even as Obama pretends to support it), Obama’s EPA just suspended permits for mountaintop mining of coal, a move that could affect 200 coal mining operations in the Appalachians. (Now that’s job creation for ya!)

Finally to ensure that we don’t develop our own oil and natural gas resources (which Obama claims to support),…