Sunday, April 2, 2023
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting
Best Retirement Wishes
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • Top News
No Result
View All Result
Best Retirement Wishes
Home Editor's Pick

The NYT’s Willow article allows issue advocates to alternately assume perfectly elastic demand and supply

by
March 14, 2023
in Editor's Pick
0
The NYT’s Willow article allows issue advocates to alternately assume perfectly elastic demand and supply
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

The decision to allow mining in Alaska is controversial (Biden Administration Expected to Move Ahead on a Major Oil Project in Alaska): 

In one of its most consequential climate decisions, the Biden administration is planning to greenlight an enormous $8 billion oil drilling project in the North Slope of Alaska, according to two people familiar with the decision.

Related posts

Hatchery supported trout waters open Saturday*

April 1, 2023
Bold move to ask @Jeem_Tweets to serve as a referee

Bold move to ask @Jeem_Tweets to serve as a referee

March 31, 2023

Alaska lawmakers and oil executives have put intense pressure on the White House to approve the project, citing President Biden’s own calls for the industry to increase production amid volatile gas prices.

But the proposal to drill for oil has also galvanized young voters and climate activists, many of whom helped elect Mr. Biden and who would view the decision as a betrayal of the president’s promise that he would pivot the nation away from fossil fuels.

On one side is the “environmental activist” worried about a “carbon bomb” (in fairness to issue advocates, this is not a quote from an activist): 

Still, Willow would be the largest new oil development in the United States, expected to pump out 600 million barrels of crude over 30 years. Burning all that oil could release nearly 280 million metric tons of carbon emissions into the atmosphere. On an annual basis, that would translate into 9.2 million metric tons of carbon pollution, equal to adding nearly two million cars to the roads each year. …

Environmental activists, who have labeled the project a “carbon bomb” have argued that the project would deepen America’s dependence on oil and gas at a time when the International Energy Agency said nations must stop permitting such projects to avert the most catastrophic impacts of climate change.

Increasing the amount of oil produced would increase the supply of oil if we consider new mines as firms entering the industry. But, the only way that the amount of oil produced would increase the amount consumed by the same amount (the “carbon bomb” scenario) is if the demand for oil is perfectly elastic. In the picture below the additional mining shifts (rotates) the supply of oil from S to S’ and buyers in the market snap it up at the existing price. The increased quantity of oil consumed is equal to the increased supply at the market price (both arrows are the same size). 


But, if the demand for oil is sensitive to price (note: it is) then the amount consumed (the bottom arrow) will be less than the supply increase (the upper arrow): 

On the other side is the energy industry making even less sense: 

Kevin Book, managing director of Clearview Energy Partners, a research firm, … argued that the emissions linked to burning oil drilled from the Willow project would not have been eliminated if Mr. Biden had rejected the project, but simply generated elsewhere.

This quote assumes that there is some demand increase, the source of which I don’t know, and a perfectly elastic supply from existing miners. 

If the supply curve is upward sloping (it is) then the increase in consumption would be less than the demand increase. I’m not going to dignify this scenario by drawing this out because I’m not sure where the demand increase is coming from. As far as I can tell, if there is no oil from the Willow project nothing changes in the oil market. 

Happy to be corrected, what have I missed?

Previous Post

The Theory and Practice of Conspiracy

Next Post

Looming Bank Failures Point to More Price Inflation as Real Wages Fall Again

Next Post
Looming Bank Failures Point to More Price Inflation as Real Wages Fall Again

Looming Bank Failures Point to More Price Inflation as Real Wages Fall Again

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

RECOMMENDED NEWS

Why Fractional Reserve Banking Is behind Bank Failures

16 hours ago
Austrian Economics Stands against the Collectivism of Progressive Thought

Austrian Economics Stands against the Collectivism of Progressive Thought

4 weeks ago
Worldwide Protests against Involvement in Ukraine: Will Governments Listen?

Worldwide Protests against Involvement in Ukraine: Will Governments Listen?

5 days ago
Episodic Release in Ohio: Train Derailment Forces Controlled Burn of Toxic Chemicals

Episodic Release in Ohio: Train Derailment Forces Controlled Burn of Toxic Chemicals

2 months ago

BROWSE BY CATEGORIES

  • Economy
  • Editor's Pick
  • Stock
  • Top News
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

POPULAR NEWS

  • Just Say No to the New Forever War

    Just Say No to the New Forever War

    0 shares
    Share 0 Tweet 0
  • How Can We Restore Freedom and Sound Money in the US and the UK? Some Ideas

    0 shares
    Share 0 Tweet 0
  • I went to 2+ climate change sessions at the ASSA meetings

    0 shares
    Share 0 Tweet 0
  • Producers Should Reject Calls to “Give Back”

    0 shares
    Share 0 Tweet 0
  • We Will Berry You

    0 shares
    Share 0 Tweet 0

Disclaimer

BestRetirementWishes.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Recent News

  • Why Fractional Reserve Banking Is behind Bank Failures
  • Hatchery supported trout waters open Saturday*
  • Climate Activism: The Second Children’s Crusade

Category

  • Economy
  • Editor's Pick
  • Stock
  • Top News

Recent News

Why Fractional Reserve Banking Is behind Bank Failures

April 1, 2023

Hatchery supported trout waters open Saturday*

April 1, 2023
  • About Us
  • Contact Us
  • Privacy Policy
  • Terms & Conditions
  • Email Whitelisting

© 2021 BestRetirementWishes. All Rights Reserved.

No Result
View All Result
  • About Us
  • Contact Us
  • Email Whitelisting
  • Home 1
  • Privacy Policy
  • suspicious-engagement
  • Terms & Conditions
  • Thank You

© 2021 BestRetirementWishes. All Rights Reserved.