Tuesday July 2 begins my new Mises Academy online class, “Adventures in Energy Economics.” This five-week $59 course will cover the economic treatment of depletable natural resources, pollution, and climate change, as well as the current public policy debate.

The course naturally will focus on an entrepreneurial, property-rights, Austrian perspective, but the standard mainstream views will be accurately presented. All reading materials will be provided and are included in the course fee.

After the five-week course, the student will have a solid command of some of the major issues in energy economics and will be able to handle typical objections to laissez-faire capitalism coming from an environmentalist perspective.

Scope

The weekly lectures will run from July 2 through July 30. The first week will address the question, “Will we run out of energy?”…

“What we ask for is a more rigorous education on energy and environmental issues. Today’s students do not learn even basic facts about the energy sources that make our civilization possible. But they are encouraged to take strong policy positions on the basis of extremely speculative predictions by individuals and institutions who falsely claim to represent the conclusions of all informed scientists.”

Dear American Universities,

You have no doubt heard the calls by certain environmentalist groups for you to publicly divest your endowments of any investments in the fossil fuel industry. We ask that you reject these calls as an attempt to silence legitimate debate about our energy and environmental future.

The leaders of the divestment movement say it is not debatable that the fossil fuel industry is “Public Enemy Number One”—that it deserves to be publicly humiliated by having America’s leading educational institutions single it out for divestment.…

“[Free energy] markets tend not only to clear, but to clear faster and at lower prices than anticipated.”

The resignation of Aubrey McClendon as CEO of Chesapeake Energy provides a good case to study in corporate strategic planning. Ignoring his financial side deals, for which he has received a good share of criticism, the wisdom of his primary strategy, the aggressive pursuit of shale resources, is an open question to many. Although he has been hailed as a pioneer and risk taker, clearly those risks have gone bad and should be examined.

Higher Prices: A Bad Bet

The core failing was his decision to bet the firm (essentially) on high natural gas prices. From 1997 to 2005, wellhead prices had increased from $3/Mcf to $8/Mcf (2010$), the highest level historically. This, combined with a neo-Malthusian mentality, convinced him and many others that prices would not be mean-reverting, but remain at levels from two to three times the historical average.…

“The world’s problem is not too many people, but a lack of political and economic freedom.”

– Julian Simon, The Ultimate Resource 2 (Princeton, N.Y.: Princeton University Press, 1996), p. 11.

“The ultimate resource is people—especially skilled, spirited, and hopeful young people endowed with liberty—who will exert their wills and imaginations for their own benefits, and so inevitably they will benefit the rest of us as well.”

– Julian Simon, “Introduction,” in Simon, ed., The State of Humanity (Cambridge, MA: Blackwell, 1995), p. 27.

Julian Simon (1932-1998) was born February 12th, eighty-one years ago today. MasterResource, which is named in his honor, applies Simon’s ultimate resource insight to the master resource of energy and to related environmental issues (see Appendix A).

This week, MasterResource will publish the remarks of three former Julian L.…