Paul Meisel

Falling Oil Prices: Producers Are Playing a Game of Chicken

Maximization of profit when a limited number of producers, with high barriers to entry, control supply is a classic economic problem, and the question of whether you characterize the actions of the players as "manipulation", "speculation", or "prudent business decision making" largely depends upon your own point of view. It is clear that the producers are in the driver's seat, deciding when and if to bring additional supply on line, when to maintain what facilities, etc.

The only way to change that is to develop more economically feasible substitutes -- which any number of people are trying to do because it would make them rich (although they can claim their motivation is environmental, patriotic, populist, or whatever else).

Like Cuba Gooding said, show me the money...