Lesismore46

Oil Price Decline Bad News for Future Supplies

With the stimulus packages, the interest rate cuts, the bailout of financial institutions, and extension of tax cuts, I estimate that the recession will be short lived and not as deep as expected. However I agree that as energy companies postponed expensive projects, shut down production, and lay-off the experienced human capital, the country will be in for a new oil shock in the near future. Like a diet, conservation does help in the short term, but eventually consumers appetite return to previous levels. With renewable energy sources virtually abandoned, we will not see $40 oil, but $100 is possible in 2009.