Here's a link from someone who says high oil prices may not be here to stay and explains why.
To save you a lot of reading, if you don't want to do it, here's one of the salient points:
A similar scenario occurred following the price explosion in the 1970s and early 1980s. The price spike caused the world to cut back sharply on oil consumption. By the mid-80s, oil prices had fallen from almost $40 to around $15. They remained extremely low for two decades.
I am a little afraid to be too optimistic, but the article sure makes a lot of sense to me. I'd guess it will be a while before the crash happens, though.
1 comment:
Oil should be owned as a cooperative endeavor.
There should be a no upward limit to the overall purchase of oil company stock and anyone should be able to buy stock in oil companies as easily as a U.S. Treasury Savings Bond. This way no group of investors can take control of oil (or natural gas, or coal) by limiting future stock ownership.
Basically energy companies have bought the electric company and the water works, and like in the game monopoly, can earn more by controlling both spaces. Imagine how monopoly would work if half the cards in the chance deck required an owned property to be auctioned.
Patiently waiting for coal powered electric plug-in cars.
Jim
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