Has Energy Ended 40 Years in the Wilderness?

Interesting discussion, especially the discussion of solar and wind subsidies. But doesn't corruption and inability to stop pervasive government stupidity and organized rent seeking make future energy prices unpredictable? Oil price volatility was more a product of zero marginal costs and high capital costs, than government policy wasn't it? What are the differences in these factors with fracking?

I Walton (View Comment):

Interesting discussion, especially the discussion of solar and wind subsidies. But doesn’t corruption and inability to stop pervasive government stupidity and organized rent seeking make future energy prices unpredictable? Oil price volatility was more a product of zero marginal costs and high capital costs, than government policy wasn’t it? What are the differences in these factors with fracking?

Very nice summary Mr. I Walton. Energy like banking has become a corruptocracy unto itself to survive. They are front in center as examples why smaller government is best.

Fracking is similar to big oil, but slighting lower in scale. Thus, the incremental capital is lower for incremental production. Fracking also requires refresh and renewal every 18-24 months. Therefore, it can ramp up and down so long as there are frackable substrate formations accessible.

This means, fracking has marginal costs that are higher and upfront costs that are lower. Collection and distribution costs can be higher too due to location, volumes, and dispersal. Note American fracked oil being transported by railroads rather than pipelines.

I Walton (View Comment):

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James Madison (View Comment):

This means, fracking has marginal costs that are higher and upfront costs that are lower. Collection and distribution costs can be higher too due to location, volumes, and dispersal. Note American fracked oil being transported by railroads rather than pipelines.

Thanks, that is what I suspected, so this should ameliorate the volatility to some extent should it not?

Great interview, Steve. It was very informative. Thank you.

I haven't listened yet. However, I'm in the business, and I'm seeing nuclear power plants closing one after another like dominoes.