I love Mark Perry’s expression, “Saudi America”, as he continues to survey the virtual explosion taking place in the oil industry in the US. It continues to illustrate what happens when free enterprise, private capital, and opportunity intersect without government intervention. Here’s a graph from his article:
The increases in US crude oil output are accelerating, and the 23% annual increase through the second week of January this year [compared to a year ago] was the highest yearly gain in domestic oil production in the last 20 years…
At the current pace of increase, US oil output could reach 7.5 million bpd by May of this year, which would bring domestic production to the highest level since January 1990.
Bottom Line: “Carpe oleum” (seize the oil)
Nothing I’ve seen better expresses how the free market works than this.