, Columnist
Fracking Needs a Shakeout, Not a Bailout
Propping up shale wells despite vanishing demand would expose the fallacy of Trump’s “energy dominance” goal.
They don’t need a bailout.
Photographer: Spencer Platt/Getty Images North AmericaThis article is for subscribers only.
Calls for the Trump administration to provide financial aid for frackers have drawn denunciations of socialism. If anything, with oil trading around just $31 a barrel, the critics don’t go far enough. Because directing state resources into producing yet more of a thing manifestly not in demand isn’t just socialism; it’s the Soviet-grade, tractor-quota good stuff.
There is nothing wrong per se with government stepping in as a last resort when crisis threatens a vital segment of the economy. But you need a clear understanding of what the crisis is, what’s vital and what the objectives are.