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The Real Existential Threat To America’s Oil Industry Isn’t What You Think

Today’s Energy Update
(Because Energy Fuels Our Lives)

Mark P. Mills published an excellent piece on Feb. 28 detailing why the “Green New Deal” proposed by New York Cong. Alexandria Ocasio Cortez and other Democrats does not represent any sort of existential threat to the oil and gas industry, now or in the future. If you haven’t read this highly-informative piece, you should.

But the reality that “green energy” tech is too limited by the laws of physics to ever hope to displace the internal combustion engine or fossil-fuel-powered baseload electricity generation does not mean that the U.S. industry is free from existential threats. Such threats originate mainly from failures by the industry to universally and effectively address issues that chronically impact and irritate a variety of stakeholders over time.

One of the characteristics that makes the domestic industry so great is the fact that it is not a nationalized, single entity like Mexico’s Pemex or PDVSA in Venezuela. But its status as a business made up of thousands of highly-competitive, private and corporate entities also makes it less able to develop and adopt truly effective, universal solutions to ongoing, chronic issues.

Hydraulic fracturing, or “Fracking”, is a great example. Fracking is literally a technological miracle that has transformed the United States from a country that seemed hopelessly reliant on foreign imports at the turn of the century into one of the world’s largest producers and exporters of both oil and natural gas today. But the industry’s inability to find and adopt ways to make the process less impactful on individual stakeholders and local communities has also led several states – including New York, New Jersey and Vermont – to enact either outright or de facto bans on fracking within their borders.

Read the Rest Here

 

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1 thought on “The Real Existential Threat To America’s Oil Industry Isn’t What You Think

  1. Jimmy MacAfee - March 8, 2019

    I see this as a similar issue to other professions, some of whom are negatively affected by competition from illegal immigration and human trafficking – and yet the professions allowed their names to be drug through the mud and slimed. They were warned years ago that the misuse of the professions by unethical operators would be costly to the professions’ reputations, but they did nothing. Slept through it, and now they weep.

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