|Gail Tverberg gives us an excellent overview of why oil prices will continue to decline in her latest blog What’s Ahead? Lower Oil Prices, Despite Higher Extraction Cost. She writes,
Nearly everyone believes that oil prices will trend higher and higher, allowing increasing amounts of oil to be extracted. This belief is based on the observation that the cost of extraction is trending higher and higher. If we are to continue to have oil, we will need to pay the ever-higher cost of extraction. Either that, or we will have to pay the high cost of some type of substitute, if one can be found. Perhaps such a substitute will be a bit less expensive than oil, but costs are still likely to be high, since substitutes to date are higher-priced than oil.
For those convinced that oil prices must rise, her explanations of why oil prices must fall may be an eye-opening revelation.
Saturday, November 16, 2013
Why Oil Prices Will Continue to Fall
Posted by Unknown at 01:26