For those that think Alaska should continue to maintain spending because, as one legislator put it yesterday, oil prices are going to bounce back, I suggest reading this (or any of the other dozens of analyses by those deep into the market that say the same thing): [T]he IEA [International Energy Agency] thinks this represents a permanent shift in oil market dynamics. Economic development no longer spurs oil demand growth as it once did, especially in the absence of wage gains. China, the top source of incremental oil demand in recent years, has entered a less oil-intensive stage of development, while years of high prices have let innovative technologies unlock untold resources in North America and likely soon elsewhere .... [A] return to previous price highs may not be a close prospect, as it is increasingly clear that we have begun a new chapter in the history of the oil markets.” ow.ly/Ekst1
Posted on: Sat, 15 Nov 2014 20:50:09 +0000
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