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Originally Posted by sailaway21
Last month was a particularly heavy month for US consumption of Norwegian crude oil. We imported just over 12,000 tons of Norwegian crude.
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I was being facetious. 86% goes to EU; we export 2,5 million barrels per day. My point was that US imports – some 14 mill bbl/day – and every country producing that oil pays a penalty in terms of Kyoto/ CO2 levels.
Sailaway, you truly misread me. I am almost certainly a firmer believer in the market than you. A pure, hard-core market economist if you like; almost everything we do is market-driven, and it matters not one hoot what governments
claim to be driven by. The old communist bloc was a captive of the market as much as anyone else, and they got it wrong. Getting the market wrong is part of the whole cycle, agree?
The difference lies in ability to recognize market forces. When an input is artificially underpriced or overpriced it distorts market behaviour. You point to one such effect with your
“Government choosing arbitrary mandates has always produced a loss of productivity greater than any monies saved.”
But then you continue
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“The unwillingness of the US government to do what is real and achievable in today's terms to reduce our dependence on foreign, especially petroleum based, energy is unconscionable.”
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Precisely, and why hasn’t the government acted before? Because it had willing suppliers at good prices, a cartel to boot, famous for its inability to drive a bargain, putty in US hands. The government followed market logic – why develop when there was no need? Shortsighted but plausible accounting.
The problem is that we’re not dealing in fruit stalls. The lead times for developing energy resources and adapting an economy are long, and a blindfolded pursuit of the cheapest solution today can leave you high and dry by the time you realise times have changed.
If there were no explosive growth and consumption in China, the issue of
fuel supplies may have crept up on us unnoticed. The trouble isn’t that global scale issues lack market mechanisms, but that the
horizon is too long for politicians who deal in 4-year horizons. It is also too long for individuals who look at the gas
pump price. It is also too long for companies and share traders who cowtow to quarterly P/L statements. Quarterly reporting is a massive impediment to free market behaviour: executives on a short leash optimise short-term profit for bonus and tenure, in companies that ought to have 5-10 year horizons.
The market punishes them eventually, but they have been so naively preoccupied with yesterday’s price that they didn’t see it coming.
American cars today are vastly more efficient than 10 and 20 years ago, but did the market drive the manufacturers or were they dragged screaming by the hair? Governments turned the screw slowly, from leaded to unleaded, with new emission controls and so forth, and we’re better off for it.
You believe less in markets than you make out.
“The unwillingness of the US government” - Say what? Wasn’t this the kind of thing the free market solves perfectly? Why would a government need to be involved? Perhaps you really meant that there should be no constraints, i.e. governments should not have pollution restraints, wildlife or environmental concerns, social goals. Well they do, and this too forms part of the framework within which markets form – it doesn’t make the market less “free.” Visit the ship graveyards on Indian beaches where apparently no human or environmental right needs to be observed, and then explain how sweetly an unfettered market serves us.
We have every reason to be concerned with the environment, because there are no potent mechanisms in the market to keep us from destroying it. In a perfect world, rational choice would drive us to nurture it for pure economic reasons, but when no economic entity has that horizon, it needs help. The market is perfectly capable of reaching balance, the issue is how much devastation we have to suffer while waiting.
You’re wrong about those girls, but only because you’re so eager to make a point. It is summer, the one time when the girls are in Oslofjord and not in Spain. And they are hot when topless!