Well, I’m back from my 12-day cruise off South America, lecturing with a Hillsdale College group. Except for two ten-hour flights on American Airlines in economy-class seats that would, were I a prisoner of war, violate the Geneva Convention, it was a great trip, with a great crowd.
Much to my surprise, on my return I found that the New York Times’s editorial page is still utterly predictable. The lead editorial this morning for instance, contains absolutely nothing new regarding drilling in the United States and U.S. waters. The Times writes:
It’s campaign season and the pandering about gas prices is in full swing. Hardly a day goes by that a Republican politician does not throw facts to the wind and claim that rising costs at the pump are the result of President Obama’s decisions to block the Keystone XL pipeline and impose sensible environmental regulations and modest restrictions on offshore drilling.
As any economist (except Paul Krugman) could tell the Times, any restrictions on future supply has an immediate upward price effect (and vice versa–promise of greater future supply brings down prices right away). So the Keystone XL pipeline decision certainly put upward pressure on gas prices. So does “modest restrictions on offshore drilling.” These modest restrictions include putting the entire east coast, the Florida gulf coast, and the entire west coast off limits to oil drilling. I hate to think what immodest restrictions would look like.
Even where drilling has been grudgingly allowed by the government, as off the north coast of Alaska, non-governmental organizations that the Times would never dream of criticizing stand ready to block any drilling. As the Times itself reports this morning, Shell Oil has launched a preemptive suit to try to forestall the inevitable legal challenges from groups masquerading as environmental groups (they are actually anti-business groups). Shell has already spent $4 billion just to get the government’s permission to drill. The Times writes:
Marvin E. Odum, Shell’s president for the United States, said in an interview that he was highly confident that the company’s plan for preventing and responding to an oil spill would survive any legal scrutiny. He said the company had filed the suit in the hopes of speeding up the judicial review of the plan that will come if and when the environmental groups who have challenged Shell at every step of the process file suit.
Their filing suit is more certain than the sun’s rising in the east tomorrow morning.
The Times also notes that we use 20 percent of the world’s oil (not surprising, actually, as we have 25 percent of the world’s GDP), but only 2 percent of the world’s reserves. This is lying with statistics. By definition, “proven reserves” are those that 1) are known to exist, 2) can be economically extracted with present technology and, 3) can be exploited under current law. So the vast reserves that are known to exist offshore (although even exploration is forbidden in many areas–doubtless because the left fears something might be found) don’t count. Neither do the huge reserves locked up in the oil shales of the West. Take away the legal restrictions imposed by the left, and American oil reserves probably exceed those of Saudi Arabia.
It’s nice to be back in the real world, even if it means I have to start reading the New York Times editorial page again.