I think what this really proves is that the oil industry was manipulated all along to create higher prices artificially. People should really be pissed that the MSM and the industry is tying to manipulate the price upward again because we know damn full well they will take the new price to a whole other level than before so they can bring it back down to a level that is where it was last year. This is how they work because the higher prices on’t effect the wealthy; only pople living on shoe string budgets like us.
The oil industry goes through boom/bust cycles fairly regularly. They have little or no control over prices.
Geopolitical forces cause the cycle in most cases and oddly enough usually trump supply and demand.
If you want to point fingers at someone for this latest run-up, point them at the commodity speculators. They rode this harder and longer than it should ever have lasted.
The main good I see out of this is that we have greatly improved exploration and recovery techniques since the last bust in ‘86.
The AAPG (American Association of Petroleum Geologists) motto in ‘86 was “Quick fix in 86 or chapter 11 in 87.”
For most of the little guys, it was Chapter 11.
My boss at the time bought good drill pipe for little more than scrap price and we built buildings out of it.
I was fresh out of school with a Geology degree and no prospect whatsoever of getting a job in the field.