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If the price of oil spiked high enough long enough, would it destroy enough demand for long enough so as to pull the longer-term price of oil down enough for long enough to exterminate the shale frack-oil industry beyond restoration even if the price ever goes back up again? The Financial Times was blunt: Sorry about this rave: If the goal is to get the oil, the right policies are available this very minute. Heavy sour crude which is what Iran and Venezuela have a lot of produces less gas and more of the heavier distillates like tar when refined, when contrasted with light, sweet crude, which is what the Saudis have. I recall that in some of the big Wall Street banks were buying and storing physical crude oil in leased tankers while the price of oil spiked ever higher. And cheap energy will then be used excessively to promote other industrial uses to achieve the necessary surpluses, etc.

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The accelerator in this is ever-cheaper, ever-higher-volume solar power and batteries; they effectively set a price cap on oil, whenever it goes above that, people switch to solar and batteries, crashing the price again.

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The best way to adjust is to limit the amount of oil being extracted and raise the price. Prices have dropped for a few reasons. Energy Information Agency EIA shows that refined product gasoline, for example inventories are increasing — an indication that production is overwhelming consumption. If there is, is there a way to set it into motion on purpose? STO, Your comment, and particularly your final sentence, provided food for thought both from a historical perspective and about future policy possibilities. There are a lot of catchs in a world based on profit. Joe Costello, author of Of, By, Forexplains via e-mail:.

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