Energy regulation is hopelessly out of date.
Since the Arab oil embargo of 1973, U.S. energy policy has assumed a steadily declining supply of domestically produced oil and gas. Then all of a sudden, beginning around 2006, the landscape shifted dramatically, thanks to the genius of American technology and the idea of free-market capitalism. Remarkably, we stand on the threshold of a transformative energy future, provided that we can find the wisdom to get out of our own way.
The United States is once again the world’s leading producer of natural gas. Within a few short years we will surpass Saudi Arabia and Russia to reclaim the world’s crude oil crown. This gives us opportunity to invigorate economic growth and attenuate a stubbornly persistent trade deficit. What remains now is to dismantle some of the old restrictions that have long outlived their utility.