Comment 60644

By Tybalt (registered) | Posted March 03, 2011 at 08:11:21 in reply to Comment 60641

Sure; now since we're all being such smart, practical economists here, I'll point out to you that the cost of extracting a resource (which is what we are talking about here, remember) includes all the political costs associated with extracting it. If resources are locked away for political reasons.

If we can't get at that oil because political forces mean we can't tap it, then guess what, it doesn't help deal with the production shortage. Remember, the issue with a "shortage" is only that oil is becoming more costly to extract, not that we're going to suck the well dry in five years.

All the remaining US oil reserves are high-cost-of-extraction anyway. There are now low-cost reserves left.

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