“To run a pricing market for a non-renewable resource off rationing short-term supply and demand makes no sense.” – Gregor MacDonald
One of the worst traps in thinking about the future is assuming that your images of 20, 30, or 50 years ago are still likely, or even possible, in the future. Gregor illustrates this beautifully in his post “Jett Rink’s Speedboat,” about how today’s major oil finds will never lead back to some cheap oil pseudo-paradise of the 1950s and 60s. They cannot. Because this world is so very different.
Notice also his comments on how hyperbolic oil companies are becoming from oil field “discoveries” that sound dauntingly difficult – and how the market responds anyway.