Bearcat, good article, I agree with you that the longer term outlook on gas and other extracted energy resources will be dicey. Maybe even in the fairly short term. More reason to intensify activity in conservation, alternatives, co-generation, etc. As natural gas prices rise, expensive alternatives will become more feasible.
However, the California situation with its sufficient energy supply currently is more related to conservation, a cool summer, and the price caps removing incentives for withholding supply than any recession induced demand decrease, IMO. Unemployment here is still only around 4%, and other than some high tech and dotcom bombs, we haven't been hit too hard yet.
For me, this story has never been about demanding cheap gas and energy prices. That's how some of the media painted it though. Everyone is going to have to get used to higher prices for natural gas and oil over time if worldwide standards of living increase, except during serious recessions, again IMO. In a few years, those long term contracts that Davis signed may actually look good in comparison.
The problem here is about gaming and manipulation, and a refusal to address it by the authorities who were responsible for doing so. |
