“The Permian Basin is a story about combining the various talents of independents, majors, and service companies in using advancing technologies to sustain the lifespan of existing fields, to tap into zones that were previously uneconomic or inaccessible, and to increase the Permian’s proven reserves in a remarkable fashion.”

The Permian region, in western Texas and extending into southeastern New Mexico, has been one of North America’s major oil and natural gas producing regions for nearly a century. What makes the Permian stand out, besides its size, is its huge diversity. Rather than a single play, it is a collection of regional conventional and unconventional plays, producing from a variety of geological formations covering a wide area in more than a dozen productive formations.

Permian wells produce in depths ranging from a few hundred feet to tens of thousands of feet.…

When it comes to energy, T. Boone Pickens esteems government planning. When asked about President Obama’s recent proposal for an Energy Security Trust, Pickens responded:

That starts to talk about a plan. He’s going to fund something to start something…. Make a plan … and do something different.

And low and behold, Pickens is crusading with yet another energy plan, his third in the last six years. As before, his animus is against Big Oil (see Appendix) and his fondness for personal dollars.

Pickens Plan III proposes that the federal government sell oil from the Strategic Petroleum Reserve (SPR) to jump-start the costly transition from oil to natural gas to fuel transportation. We don’t know the details yet, but T. Boone in March began pushing his new plan in the national media and local press.…

The Fraser Institute recently published a study examining the impacts of green energy policies inOntario,Canada. The summary of the study, which was written by Fraser Institute Senior Fellow Ross McKitrick, is below.

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The Ontario Green Energy and Green Economy Act (herein the GEA) was passed in May 2009 with the purpose of addressing environmental concerns and promoting economic growth inOntario. Its centerpiece is a schedule of subsidized electricity purchase contracts called Feed-in-Tariffs (FITs) that pro­vide long-term guarantees of above-market rates for power generated by wind turbine farms, solar panel installations, bio-energy plants and small hydroelec­tric generators. Development of these power sources was motivated in part by a stated goal of closing the Lambton and Nanticoke coal-fired power plants.

This report investigates the effect of the GEA on economic competi­tiveness in Ontario.…

[Ed. note: Dr. Grossman is author of the just-released U.S. Energy Policy and the Pursuit of Failure, an important and sobering tome with much insight about today’s debate.]

The U.S. government has claimed over the years one and one reason only for government intrusion into markets: Market failure. As a Carter administration document put it:

The first assumption for any commercialization activity by the government is that the market either has failed or will fail to make the optimum choice … [and] that the government policy maker can make a better selection than can the market.

Every administration has reiterated something like this. The Clinton administration made the point that the government needed to get involved in creating an 80-miles-per-gallon “supercar” because as the president claimed, “[T]here are a lot of things that we need to be working on that market forces alone can’t do.”…