If that worst case scenario doesn’t come to pass, energy prices could well retreat. In any case, even the oil and gas spike thus far is not likely to have a significant economic impact. All that oil and gas shale production from private, not federal, lands is a big reason why. The new natural-gas supplies have caused the price of natural gas to fall substantially. That means much lower home-heating bills for consumers. And the relatively mild winter so far is another factor contributing to lower utility bills.
The moral of this story is that America should continue to drill, drill, drill, and put up the Keystone XL pipeline, and work with Canada to build an energy-independent North America. But as long as the Iranian threat is unsolved, the future risk of higher energy prices is going to be a fact of life.
To find out more about Lawrence Kudlow and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate web page at www.creators.com.
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