Running on Empty

Praveen Ghanta uses the BP Statistical Review of World Energy to compile a list of countries that are pumping far less oil than they were at the peak of their production. About 60 percent of world oil output is coming from countries past their peak production (however from looking at the list you can imagine a few countries swinging back into the black, so to speak).

It's with this in mind that we turn to Stephen Hayward, who takes aim at Jimmy Carter's "malaise speech" and the notion that America should live within its means:

"People who talk about an age of limits are really talking about their own limitations, not America's." So said Ronald Reagan, whose first act on entering office 18 months later was to decontrol oil prices by executive order (a step Mr. Carter had refused). Liberals predicted $4-a-gallon gasoline. Instead, oil prices fell for a decade, along with what was left of Mr. Carter's reputation on energy issues.

This is a bit of a dodge, because the U.S. enjoys "cheap oil" only insofar as we refuse to price in the costs of our military presence in the Gulf and any negative externalities associated with our Middle East policies. Factor those in and the price environment changes.

I was barely sentient when Carter made that speech, so I can't comment on the mood at the time, but I cannot for the life of me understand why the notion that the U.S. must align means with ends is so anathema to so many people.

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Photo credit: AP Photos