We’re not running out of oil

While on the topic of competitive markets and energy security, MIT professor M A Adelman exposes several myths surrounding the crude oil markets: essentially more importance is accorded to the OPEC cartel than it really deserves.

U.S. oil policies are based on fantasies not facts: gaps, shortages, and surpluses. Those ideas are at the core of the Carter legislation, and of the current Energy Bill. The Carter White House also believed what the current Bush White House believes — that, in the face of all evidence, they are getting binding assurance of supply by OPEC, or by Saudi Arabia. That myth is part of the larger myth that the world is running out of oil. [Regulation Magazine via Cafe Hayek]