The top two stories in today's links are on shale oil and the fiscal cliff. I will concentrate on the shale oil issue and say a few parting words about the fiscal cliff. We have three articles on shale oil here and I think the lead article from Bloomberg is a recitation of the optimists' or the bulls' case on shale oil. Most people who understand the logic behind peak oil and support it do't believe that the shale oil fields will make the US energy independent. Nor do they believe that the oil finds are significant in global terms given the increasing demand and limited, low-cost supply.
As I stated earlier in the year in my primer on peak oil, the best way to look at the conundrum is through the lens of cost-effective supply constraints. If demand craters due to a depression or sky-high ...
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Edward Harrison is the founder of Credit Writedowns and a former career diplomat, investment banker and technology executive with over twenty five years of business experience. He has also been a regular economic and financial commentator in print and on television for the past decade. He speaks six languages and reads another five, skills he uses to provide a more global perspective. Edward holds an MBA in Finance from Columbia University and a BA in Economics from Dartmouth College.