As Oil and Gas Prices Plunge, a Frenzy of Drilling Ends – NYTimes.com

Our conservative politicians would have us believe that unregulated markets are all intelligent and left unregulated will solve all of our problems. It is safe to say that energy policy is a  national security issue.  An article like this just illustrates why we cannot simply defer to “the market” for our sound financial future.

The article states:

“The big bonanza is over,” said Jay Ewing, the completion and construction manager for Devon Energy in the Barnett Shale field here, where so far this year his company has brought its rig count from 35 to 8. “Everyone is really shocked how fast everything has turned.”

Energy experts and company executives warn that oil and gas companies now cutting back on investments will be unable to respond quickly to a future economic recovery. John Richels, Devon’s president, said that if the slump lasted two years, it could then take 18 to 24 months for companies to reassemble rig crews.

After making obscene profits over the last few years and as patriotic Americans knowing the economy will rebound, one would think that the Oil Companies would keep their equipment ready for production when the economy recovers. Barring that, inflated oil prices are sure to slow said recovery.

As Oil and Gas Prices Plunge, a Frenzy of Drilling Ends – NYTimes.com