High Energy Prices Spurring Investment

By June 5, 2008Energy

From Holman Jenkins’ WSJ “Business World” column today, “The Coming Oil Investment Boom“:

But the biggest fools today may be those greenies who are clapping their hands over $135 oil as if this somehow represents the beginning of the end of fossil fuels. High prices are not the equivalent of carbon taxes – they will have the opposite effect in the long run, spurring investment and technological progress to bring vast new resources of fossil energy into production. For instance, turning coal, oil sands and oil shale into motor fuels, which is cost-effective at half of today’s oil price, means massive additional releases of CO2. It’s the worst nightmare of the climate worrywarts.

And from North Dakota:

BISMARCK, ND (2008-06-05) A pipeline company is proposing a $120-million project to add more oil from western North Dakota and Eastern Montana.

Enbridge Pipeline wants to upgrade 11 pumping stations in North Dakota along a pipeline that runs from northwestern North Dakota to Clearbrook, Minnesota. The project would increase the pipeline capacity by 51, 600 barrels a day — to 161,600 barrels a day.

“As we all know, North Dakota producers were suffering discounted prices, heavy apportionment on that line as the dramatic increase in production continues in the Bakken formation,” said Public Service Commissioner Kevin Cramer. “Hearing that cry from producers, Enbridge is choosing to invest heavily in the North Dakota system.”



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