Most “resources” in nature are useless lumps of nothing. If not for man’s ingenuity, iron, aluminum, coal and oil would lie purposeless and pristine in the wildernesses; the matter and energy abundant on earth would come to naught. The ability to discover and transform natural resources into usable goods, and continue to develop “resource-enhancing and sustaining technologies,” is, after all, unique to man. At least to some men.
Watch this wonderful YouTube clip courtesy of economist Steve Horwitz, who demonstrates that, provided we allow profits and prices to serve as the street signs of the economy, we will not run out of resources. If only the “brilliant” Barack Obama, who keeps looking for ways to curtail production, would watch with you (or, at least, read Henry Hazllit’s Economics In One Lesson, which even BHO could grasp):
And this from “THE GOODS ON GAS”:
Purchasing patterns drive prices up or down. Through their “competitive bidding” people raise the price of a commodity. In an unhampered market, rising prices would have signaled to established oil companies and other entrepreneurs and investors that there are profits to be made in the industry.
Absent legislative barriers to exploration, enterprising capitalists would have defied central planners and turned from tinkering with ethanol to drilling for—and refining—oil. Forecasted profits would guarantee accelerated production. Had Exxon and the others been allowed to satisfy their only overlords, consumers, they’d have long since increased the production of oil. Increased supply would have brought down prices—and profits, eventually.
The much–maligned price system works not only to secure supply but to conserve. The price system—rising prices in this case—signals to consumers to adjust their consumption. …
UPDATE: Hybrid hypocrites. Yes, “State-sponsored ‘sexy’ technologies in the West have decidedly ugly outcomes for worker bees in the East. The Copenhagen Crowd’s cravings must be sated, but not by despoiling California, if you know what I mean. Enter the Chinese worker. Read “NIMBYs: Not-In-My-Backyard Environmentalists” for what’s involved in the screwy, skewed Prius production line.
As for the gaseous Bill O’s Theory of Oil, which Bob below alludes to by way of the reference to the cartel: Purchasing patterns drive prices up or down. The particular price of fuel, concomitantly, is determined by supply and demand. The general trend of price increases is a consequence of government-generated inflation. I understand that Bill O’Reilly believes otherwise, but the natural laws of economics cannot be suspended, not even by “Bill O.”