Energy Milestone: Gas Rig Share Falls Below 30%
Economic Lesson(s): Prices transmit information about relative scarcity. Incentive matter. Producers respond to prices and incentives. Through the invisible hand of the market and the motivation of profit-maximization, producers are naturally switching production from relatively abundant natural gas to relatively scarce crude oil. It's a good example of market forces at work, re-allocating resources through "spontaneous order," without any need for central planning.