Keystone XL Pipeline

Taking a page from Lenin’s playbook

I have often been struck by the number of pithy observations — revelatory, pointed or simply true — that were not said by the person to whom they are attributed. Vladimir Lenin apparently never said (in Russian or in English) that “the way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.” Mark Twain, to whom many amusing remarks have been falsely attributed, apparently did not contend that reports of his death had been greatly exaggerated. Edmund Burke neither said nor wrote that evil would triumph if good men did nothing.

inflation

Did Biden’s energy policy lead to high gas prices?

The price of petroleum products is inherently cyclical, rising and falling over time due to natural and ineluctable economic forces. This has been going on since the dawn of the petroleum industry 163 years ago. The reason is that exploration for and development of petroleum resources are extremely capital intensive activities. Thus when prices are low, there is little incentive to increase production by taking the risks inherent in looking for and developing new supplies. But then, as the world economy expands over time, the demand for petroleum products increases, and prices rise. This increases the incentive to go look for more oil and gas, and the rig count goes up. New fields are located and new technologies (such as fracking) come on line.

gas