There is a lot of buzz about how “unconventional oil” and the unconventional methods that are being used to retrieve it will be the economic savior for the U.S. economy in the next decade.
Julie M. Carey, an energy economist, writes in Forbes.com about this very topic. She points out 3 potential waves of investment that will drive this new economic boom which include 1) new and expanding oil and gas production, 2) infrastructure for the transportation of the resources from remote locations and 3) the need for new gas-powered power plants to replace coal plants as well as provide power for the additional demand that this industry will create.
In order for this to occur, it must be a profitable venture for the exploration companies. To achieve this, the costs of retrieving these valuable resources will need to continue to drop and innovation must be encouraged! The fastest way to kill this potentially golden goose will be to do what the U.S. government always seems to want to do: tax it to death! Let capitalism work the way it should and keep the taxes down on the front end!
Yes the “evil” oil companies will make a lot of money from this new economic boom, but as they profit, so will the citizens of the United States, not to mention the U.S. treasury.