(Guest Post by Matthew Ladner)
Texas Comptroller of Public Accounts Glenn Hegar took to the pages of the WSJ to declare The Saudis Gambled and Texas Won:
What the Saudis and the naysayers closer to home seem to have forgotten is that the free market is the greatest incubator of technological innovation. Energy producers in this country have gauged the challenges of lower prices, are working to tackle them, and it’s paying off.
The technology behind shale production is advancing rapidly, and its costs are falling. Today the industry can tap multiple separate oil pools from a single vertical hole, drilling horizontally through miles of rock with computer-guided, steerable drill bits. Some of these “octopus” wells can feature as many as 18 horizontal shafts.
OPEC’s gamble to kill American innovation was a short-term strategy without an endgame, and no appreciation of how the strategy would spur greater efficiencies and innovation in the U.S. Call this a gentle reminder: It is never wise to bet against capitalism, especially in Texas.
George P. Mitchell continues to beat price fixers and klepto/petrocrats. This has the potential to be the biggest beat down since Herbert Dow drop kicked the European chemical cartel.