The last thing I wish to do is awaken someone that's high on
God knows what, and taking a psychedelic trip to the Shangri la-la-land of his
delusion. But that's what I must do to respond to an article that came under
the title: “The Saudis Gambled and Texas Won” and the subtitle: “Energy
innovators across the U.S.
will always beat those who bet against capitalism.”
The article was written by Glenn Hegar and published on
September 1, 2015 in the Wall Street Journal. In it, the author articulates the
following point: Saudi Arabia
took a big gamble, betting on a strategy that was flawed in that it challenged
capitalism, which is why Saudi
Arabia has already lost.
But the truth is that Saudi Arabia did not take a gamble,
did not bet on any strategy, did not challenge capitalism, and did not lose
anything. In fact, Hegar himself says what the goal of the Saudis has been all
along; to “protect their market share...” And this means protect it against
everyone; not just America
or Texas , for
that matter. So then, how did the fuss arise? It arose because right after that
last statement, Hegar went on to say this: “...and kill America 's
energy renaissance.”
Where did he get that from? Believe it or not, he didn't get
it from anything that the Saudis said or did. Instead, he “connected the dots”
and reached that conclusion all by himself … perhaps with a little help from
the psychotropic whatever that has taken control of his mind. Here's the dot
from where he starts drawing the connecting line to the other dots: “The
conventional wisdom was that energy producers in shale formations would be
squeezed by low prices.” Conventional wisdom, he says.
The hallucinogenic whatever must have kicked in at this
point because he goes on to assert: “So, surely, once that happened Texas would be in
serious trouble.” And this was his cue to rush and connect the first dot to the
second, which is this: “Columnists at the New York Times and elsewhere said the
'Texas
miracle' was fading, or even dead … and some of them seemed happy about it.”
Conventional wisdom to columnists; it makes sense.
Maybe that's why he has the last laugh. As well, the second
point easily connects to the third, which is this: “An interesting thing
happened on the way to the collapse of the Texas economy – it didn't collapse.” Why
not, Glenn? Why did the Texas
economy not collapse? And he tells you why. However, I must warn of something:
are you, my friend, ready to be shocked by an absurdity the size of Texas ?
Here is a modern Don Quixote who battled the Saudis and the
NY Times columnists, now telling you it was all a joke. Yeah, that's what he
says. Just look at his explanation as to why the Texas economy did not collapse: “Dallas and
Austin are booming, but not because of oil and gas.” What? The poor guy … his
last laugh didn't last long enough to be last for long. That's because everyone
is laughing at him now.
But that's not how he sees things. In his mind, he's the
only one laughing, and that's because: “What the Saudis and the naysayers
closer to home seem to have forgotten is that the free market is the greatest
incubator of technological innovation.” Well, I have news for you, Glenn Hegar.
It is that long before there was an America
dabbling in the practice of free market, there were Arab nomadic tribes moving
goods and services back and forth along the entire route between the Far East
and Western Europe .
Be advised that the free market system is as much an Arab
invention as swagger is an American trait. There would not have been a European
Renaissance were it not for the Arabs reintroducing into Europe
the classic Greek civilization, as well as the technologies and philosophies of
the Orient.
By now the psycho-substance in Hegar's system must have worn
itself out because he seems to have come down to Earth. And so he says this:
“An extended period of below-$40 prices – if that's what's ahead – will have an
effect on the industry and many families will have to endure layoffs. Weaker
players will go out of business. The oil industry may never be the same.”
That's refreshing.
But then he surprises you with this: “OPEC's [not Saudi Arabia 's this time] gamble to kill
American innovation was a short-term strategy without an end game … It is never
wise to bet against capitalism, especially in Texas .”