The message is clear. When all is going well, the free market capitalist system is the way to go. However, when it starts to hurt us, then let´s go cartel!
Onésimo Alvarez-Moro
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Within a decade, governments will formalise energy policy into national security policy. If war is too important to be left to generals, energy is too important to be left to free-marketeers. And America is likely to lead the way.
Libertarian purists are correct when they argue that entrepreneurs make for more efficient exploration and distribution. But governments are deeply involved in the oil business anyway, as they control territory in which oil reserves sit. Moreover, the business bottom line cannot account for energy's externalities, from ballooning trade imbalances to global warming. Surging prices – to $73 per barrel on Wednesday and counting – make the oil industry an even fatter target. But most importantly, if national security seems to be jeopardised by chaotic market conditions, then calculations of economic efficiency will take a backseat to considerations of political sovereignty.
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