Do you want to think positive today? Do you want to feel good about this country’s economic prospects? All right. Let’s go for it. Are you ready? Let’s think oil and gas.
Little Wow? Hey! I suggest you think Big Wow. And here is why.
Whether you like it or not, energy rules. When I was a kid, coal was king. Coal being a form of energy. This country was endowed with zillions of tons of coal. That coal allowed us to create gas (from coal). That coal fueled the steel mills of Carnegie. And those steel mills turned this country into an industrial power like the world had never known.
Those steel mills and rubber plants turned this country into an auto giant. They helped us to build a ship a day (or more) during World War II. The coal fueled the power plants that gave us the electricity to create an industrial behemoth.
Next, we discovered this land was also endowed with oil. Then natural gas. They too helped us continue to grow industrially.
Alas, we entered a period in which we lost a lot of our confidence. We had to import more and more of our oil. And we grew afraid to build more nuclear power sources. We had built a society that required oil. Our own oil had run low. Low enough that we had to kiss the backsides of other countries so that we could fulfill our needs. And some of those countries abused us. You invite abuse when you absolutely need something from another country.
The Arabs gave us the back of their hand, in many ways. They insulted us. Are you are old enough to remember when they forced us into long lines for a tank of gas for our cars? Then you know what I mean.
Well, what goes around comes around. We have lately learned how to extract incredible amounts of oil and gas from our own land. The amount of gas is so large that its price has fallen by 75 percent. It is not often that a basic commodity falls that much in price.
Oil is not far behind. Think how much additional oil the world must produce to feed the growth of China and India alone. This growth in demand should push the price of oil into the heavens. But it has not. And it has not, because so much more oil is flowing. Thanks to these technologies.
You have read about the concept of “peak oil.” And you have read that skeptics scoff at “peak oil.” Well, it is looking as if the skeptics are right. For at least the next 40 or 50 years. And who knows what technology will come along by then. And don’t forget coal. We may yet develop technology that will make coal more enviro-friendly.
Energy rules today. As it has for a century. And cheap energy is here. In this country. And in countries that are a helluva lot more friendly to us than the damned Arabs and Chavez-Venezuelans.
Energy is the biggest and most powerful piece on the chess board. It influences everything. This country’s energy players are discovering more and more oil and natural gas. And they are bringing it to market at lower prices. They will allow this country to control more of its destiny. They will allow us to kick backsides more than we kiss them. They will brighten the future of America for many years to come.
From Tom ... as in Morgan.
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