Professor Mark J. Perry's Blog for Economics and Finance
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I call myself a realistic optimistas opposed to an optimistic realistI wish I were rationalbut that would be a stretch
These guys know pessimism sells:Lawmakers blast oil firms' drilling plansJun 15, 2010 U.S. lawmakers blasted major oil companies on Tuesday for "virtually worthless" and "cookie cutter" plans to handle a deepwater oil disaster.
More job losses:Gulf of Mexico oil and gas activity 04 Jun 2010 The Obama administration has ordered a six-month moratorium on offshore drilling.All U.S. offshore operations provide direct employment estimated at 150,000 jobs.Oil production from the Gulf of Mexico accounted for nearly a third of U.S. domestic production and 11 percent of natural gas production last year, meaning a lengthy disruption in gulf drilling could increase the nation's dependence on imported oil, according to economists.Since 1953, the federal government has collected $200 billion from lease bonuses, fees and royalty payments from all offshore operators.Over the past 45 years, 17.5 billion barrels of crude oil and condensate have been produced in federal offshore waters, while 532,000 barrels have been spilled; meaning 30.3 barrels have spilled per 1 million barrels produced.As much as 19,000 barrels of oil is estimated to be leaking into the gulf each day (from the Deepwater Horizon well). By comparison, the U.S. consumes about 834,000 barrels of oil a day, or 14,000 barrels each minute.
U.S. boosts flow estimate of BP oil leak by 50 percentJun 15, 2010 The scientists said the "most likely flow rate of oil today" ranges from 35,000 to 60,000 barrels per day.The previous "best estimate" of 12,000-19,000 bpd was issued by the flow rate group on May 27.Even at the minimum estimated rate of 35,000 bpd, the ruptured well has dumped nearly 2 million barrels of oil into the Gulf of Mexico since the Deepwater Horizon rig exploded on April 20.
Does anyone know what plan there is when oil starts to or runs out?
Quote from grant: "Does anyone know what plan there is when oil starts to or runs out?"The market price for oil will rise and other energy sources will become more cost effective (i.e., without government sudsidy). Entrepreneurs will respond to the demand and the market will adjust to the new energy sources and their cost (all without the divine intervention of the holy government).
So now you're quoting Al Gore's television network?Seriously? Is this what this has come to?
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Dr. Mark J. Perry is a professor of economics and finance in the School of Management at the Flint campus of the University of Michigan.
Perry holds two graduate degrees in economics (M.A. and Ph.D.) from George Mason University near Washington, D.C. In addition, he holds an MBA degree in finance from the Curtis L. Carlson School of Management at the University of Minnesota. In addition to a faculty appointment at the University of Michigan-Flint, Perry is also a visiting scholar at The American Enterprise Institute in Washington, D.C.
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