“Energy fundamentals explain why oil, gas, and coal brought an end to mankind’s renewable energy era. The same fundamentals explain why decreasing the market share of fossil fuels requires so much government intervention at the expense of consumers and taxpayers.”
The use of fossil fuels grew and remained widespread for several reasons. First, they are abundant. Vast amounts of living matter on the earth accumulated over eons of time. This accumulation, combined with the ever-active nature of the earth’s surface, meant that large volumes of ancient bio-matter were captured in the earth’s crust and transformed into fossil fuels.
Secondly, hydrocarbon compounds (those consisting mainly of carbon and hydrogen) are very chemically stable. Though these compounds might change form over long periods of time and under intense pressure and temperature beneath the earth’s surface, chemical stability preserves their inherent structure and subsequent energy content.…
Continue Reading“Mark Miller, the Libertarian Party candidate, has been endorsed by four major Texas newspapers. His campaign focuses on responsible fracking procedures, rights of surface property owners in drilling areas, and the need to rename the commission to the Texas Oil and Gas Commission.”
The misnamed Texas Railroad Commission (TRC), which actually regulates crude oil and natural gas production, may soon encounter significant change. Dr. Mark Miller, a Stanford University petroleum engineering PhD, former University of Texas professor, and oilfield entrepreneur is campaigning for a seat on the three-seat Commission.
Charged with the inherently conflicting goals of both promoting and regulating oil and gas in Texas, the Commission has long been a refuge for cronyism and aspiring politicians lacking any credible qualifications for the position. In its earlier life, TRC’s “market proration authority” was used as a template by OPEC for international supply restrictions.…
Continue Reading“In the late 1970s, only three prominent energy experts continued to insist that oil prices would not rise inexorably and to display a contrariness to all efforts to dissuade them: Peter Odell of Erasmus University, the late Morry Adelman of MIT, and Arlon Tussing.” (Michael Lynch, below)
Several months ago, a giant of modern energy economics died at age 82. I belatedly sing his praises.
Arlon Tussing, author, co-author, or editor of an estimated 300 books and publications, influenced a generation of market-oriented energy economists. He also educated the energy industry by being realistic and blunt at a time when the conventional thinking was that ‘depleting’ resources meant that costs and prices had to go up.
Tussing analysis such as in his 1983 “An OPEC Obituary” (Public Interest) were spot-on, at a time when many voices were saying ‘Just Wait’ for Energy Crisis #3 (following #1’s Arab OPEC in 1973/74 and #2’s Iranian Revolution in 1979).…
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