Thursday, February 27, 2014

Re: Article in Bloomberg on Shale Oil

Yes, this is why rising traffic projections are unadulterated BS.  Oil has to be over $100 bbl for the producers to make any money.  At the prices needed, the US economy crumples like a beer can hit with a hammer.  Thus, monstrous highway projects are self defeating, because highway spending only increases productivity in poorly connected countries.  In the US, already way overpaved, highway spending is just zero sum, spending to please group A, taken out of the hides of groups B, C, and D, which pushes them backwards economically, increasing inequality and further contracting the money available for things like auto travel.

The bottom line is that we have to stop moving around so much.  Period.  Less driving, more walking.  Little to no flying. All attempts to deny that reality will only hasten it even more.

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