Sunday, December 05, 2004

Put the Endangered Species Act on the Endangered Species List

As I indicated in my previous post, Commodities bull a bear for the environment, all the normal restraints will be discarded as the rush for valuable commodities pushes aside environmental concerns. It's not just that the current administration is hostile to environmental protections. It's that they believe they don't have to hide it anymore. They believe rising prices for commodities will provide the necessary justification to override those protections in the name of relieving shortages and bringing down prices. (In this post, I tell you why, in the short run--i.e. the next several years--none of this will bring down commodity prices.)

The New York Times reports on the recent flap over putting the sage grouse on the Endangered Species List. It won't be. The key paragraph follows:

The sage grouse, whose habitat overlaps areas of likely oil and gas deposits across states like Wyoming and Montana, would likely become an economic headache to the energy and cattle industries if it were listed. A listing can trigger extensive regulation and increase costs and delays.
We can look forward to a lot more of this in the future as the commodities bull intensifies. Grist offers a good summary of how the administration plans to proceed gutting the Endangered Species Act.

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