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1 MIN READ - The Cautious Optimism Correspondent for Economic Affairs and Other Egghead Stuff has followed the U.S. shale oil/natural gas revolution for several years now and considers himself a staunch optimist about the promise that human innovative thinking—operating within an environment of economic freedom—can solve problems of resource scarcity with remarkable ingenuity.
Yet the COCEA is still shaking his head in disbelief at this story.
Wellhead breakeven oil prices for the Permian Delaware shale region were $80+/barrel in 2013. To think that $15/barrel oil, which is approaching the cost of OPEC conventional "easy oil" resources, could even enter a conversation less than six years later is absolutely mindboggling. The breakneck pace of the shale revolution serves as yet another example of economist Julian Simon's thesis in his book "The Ultimate Resource" that the only truly scarce natural resource is human ingenuity.
And to think a little over a decade ago anti-fossil fuel energy "experts" and environmental activists were adamant that commercial shale oil research should be shut down because extraction of oil and natural gas from kerogen would never be economically feasible.
Read the full Dallas Morning News story here.