Soccerfanyes

What's the Right Price for Oil?

Thanks for a really thoughtful offering! I agree with your point that it took a very high price to drive consumption significantly lower in the short term. Also, I agree that we will see continuing declines in the USA, probably less decline in Europe as they are already doing many of the things we will need to do here. Personally, I think the very high prices we are seeing will drive significantly increased capacity (oil sands, additional exploration, oil shale, much better biofuels, etc.) at the same time we will see automobiles transition to plug-in hybrids, transferring the load to electrical generation. The equation must balance and in the macro sense, there is no conspiracy driving long-term pricing.