Your thinking experiment for the day: What economic and political system exists in one country with expanding oil production and another country with collapsing production?

Consider the following two stories.

One country with rapidly expanding oil production with no end of the increase in sight. The other country is a member of OPEC and will start importing light crude.

I’ll ask two questions after mentioning the articles, which are reposted from my other blog, Outrun Change.

8/20 – the Feed – Refracking Ready to Rejuvenate Shale Revolution – Energy companies are starting to refrack wells that were fracked early on in the shale revolution. Completion technologies have improved since the early days of 2007 and 2008. It is possible output will revive to initial levels by applying current techniques. Even Reuters is noticing, not just Million Dollar Way.

Production of oil and gas is expanding rapidly in the U.S.

8/30 – Miami Herald – Venezuela: From oil power to oil importer and 9/6 – The Feed – Venezuela Set to Import Oil – Net oil output has dropped from 3.1M bopd in ’97 to 1.7M bopd in ’13. Production of light crude has dropped so severely that light crude will soon be imported from Algeria. The reason? The extra heavy oil needs to be mixed with light crude so the extra heavy stuff can be moved through pipelines. This is a case study in how authoritarian socialist governments can destroy their most lucrative and productive industry.

First question:

What are the differences between the two countries in terms of economics, legal structure, political freedoms, property rights, general perspective towards liberty, and general attitude about freedom?

Second question:

Which of these two approaches is more moral?

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