A saudi arabian once said that at $100 a barrel for oil was a good price for them. It makes exploration, and everything else seem a good investment elsewhere but it ignores the fact that things change as recently the price is half of that.
I am unsure if the market is rigged between bankers and petro states after all banking rates have been, (my blog) but i wonder if this has political dimension with Scotland’s recent attempt at independence (my blog).
However a high price starts to make alternatives like electric cars look an interesting idea, and car efficiencies a good idea. Even the most idiotic of american car makers has recently said it is a transportation company* not simply a fossil derivative engine maker thing with a seat included.
Energy is needed but how it is used is the thing,electricity use is also down due to efficiencies and improved devices.
It dont understand why the deflation caused by loss of value in paper oil is thought to be a problem by city types. The 1970’s had an oil shock, cars changed and became improved, that disincentive as a ‘supply failure’ resulted in a high price has caused alternatives to be thought about. Just like now..
Is that not progress doing more with less. Or is this ‘mba thinking’ zero is bad, but ten is great. twenty is better etc. Some books like this (my blog) are interesting on the subject if you want to read about it.
* probably not making bicycles but its a revolutionary for them