Well, maybe. The problem, as predicted on
The Oil Drum and now happening, is that the business cycle is not long compared to the oil and gas project cycle. This means that the current low energy prices are causing projects to be canceled that will be needed during the next economic recovery. Failure to invest now means higher energy prices than the last spike once the economy again attempts something like growth. In theory, nationalizing these companies would allow a steady flow of money to needed projects in good times and bad. Probably the same results could be attained by granting lines of credit on favorable terms with lots of strings attached. Matthew Simmons has for some time recommended setting energy price floors at any new high, something that would also guarantee return on investment. Anyway, in much the same way that people are talking about "green jobs to save the economy," there should be stimulus with with conditions for oil and gas extraction, because we're going to need all we can get. Without it, we won't have anything with which to build this "green economy" (which we must build if we can).
Update: This post makes the same point:
But as those in the oil industry already know, low prices will lead to a reduction of new supply in the future, a reduction that could cripple any attempts to restart economic growth. And, failure to provide adequate supplies of the world's most essential fuel will not only stifle growth, but also impede attempts to create the renewable energy economy that we will need as oil supplies decline due to geologic constraints. We need the energy from fossil fuels and especially from oil to help make the next energy transition. That calls for a massive change of direction for energy investment that simply cannot take place in an environment of low energy prices.
The implication is that we now need to put a floor under fossil fuel prices so as not to discourage the development of alternatives. That means new taxes, but ones that could be offset with reductions elsewhere. We need to discourage what we don't want, namely, wasteful use of fossil fuels, and thereby encourage what we do want, namely, carbon-free energy technology.
UPDATE II: And in
this post, with more detail.
