In my opinion, the age of cheap oil is over. We haven't run out of oil, and we can even continue to increase the amount we produce every day, but to meet the world's demand for oil, we need high oil prices.
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I think our new sources of oil dictate that. Those sources are the oil sands, tight oil and deepwater offshore. For this oil to be available for consumers, oil companies have to be able to produce it profitably.
And according to most sources, including Sanford Bernstein (below) the price of oil that these sources need is something north of $90 per barrel.
As time goes on, I believe that marginal cost of production...