NEW YORK (Real Money) -- We just can't seem to keep up with the energy revolution in this country. It's happening too fast. But because of the velocity of change and the lack of interest in Washington about what to do with it, the increases have had very little impact beyond job creation in a handful of states.
What do I mean by the velocity of change? Three years ago North Dakota was producing 350,000 barrels per day of oil. The projections by all but the most wild-eyed of oil people, namely Harold Hamm from Continental Resources (CLR), was that this production number could double over the next four to seven years.
Last month, oil production hit one million barrels a day. North Dakota has now left California and Alaska in the dust with its astounding output.
The boom has made North Dakota one of the richest states in the union. It has brought unemployment down to 3% and the average wage earner in the patch brings home more than $90,000 a year.
That's huge, but more important, perhaps, is that the surge is totally unexpected and therefore, because of no coordination whatsoever and a total hands-off policy on fossil fuels by the administration, this bounty has meant not much at all to the country. We know that now more than ever, because we know the price of gasoline in our country is going to spike and spike badly if the Southern Iraqi oil fields are taken by the radical rebels of ISIS.