From NPR’s Morning Edition, April 17, 2012:
NPR’s John Ydstie spoke with Peter Ricchiuti, professor of practice and research director of Burkenroad Reports, about the the boom in natural gas production.
Peter Ricchiuti, a professor at Tulane University in New Orleans and an expert on oil and gas production, says the normal supply-and-demand laws of economics aren’t working as they used to in the industry.
“Historically, this has always been kind of a self-governing mechanism,” Ricchiuti says. “When natural gas prices got too low, you’d start to see the industry lay down rigs until prices went back up again, and it was very effective. It was sometimes jokingly referred to as the ‘Redneck OPEC.’ ”
To listen to the entire segment, visit NPR.org: