The Oil-Autocracy Link and Drill, Drill, Drill

Mark Perry links to a Bloomberg article that plots a country’s share of world oil production against that country’s democracy index.  Then he links to an article in the NY Times about the Eagle Ford Field in Texas.

It does not quite support my thesis that oil supplies are constrained by government ownership of petroleum fields but it comes close. Prices are high because governments own those fields and they have to approve the extraction of petroleum. That holds back supply and keeps an artificially high price. You can see the reluctance of U.S. politicians to approve new domestic drilling.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s