yes, I made the same analysis. price of oil will get low, those who own reserve will sell them as fast as possible. by the way the prospection won't be affordable anymore, and we will soon forget abour shale oil/gas and deepwater drilling.
it is a well known fact in geostrategy, that the cause of 1974 oil crisis is because the seven sisters wanted to increase their margin to do prospection, and thus be more independent from middle-east. so they manipulated the middle-east producers so they establish a cartel (that they were formerly preventing) and make price explode. OPEC stop the 74 crisis because they suddenly realise that the high price of oil (higher that today relative to today's income), was feeding their competitors and preparing their burial... in europe this lead to strong reduction in oil consumption, (nuclear in france, coal in germany, high efficiency engine, tax to motivate efficiency and saving ) 2012/1/7 Jed Rothwell <[email protected]> > OrionWorks - Steven Vincent Johnson <[email protected]> wrote: > > >> [Personal comment: Obviously, if Rossi & related competition claims pan >> out in the near future, that would initiate a sustained and permanent drop >> in global oil prices, despite rising world demand. Granted, It may not >> happen immediately, but perhaps within 5 – 10 years . . . >> > > I have discussed this with some economists, including an old friend who is > a professor. They say that the cost of a commodity such as oil is mainly a > reflection of future expected supply and demand. >
