mwp: The NYT just gets worse. The reason that oil prices are dropping is that the Saud royal family has figured that the increase in US oil production (up by about 1/3 since 2009 due to recently developed hydraulic fracturing and horizontal drilling techniques) can be broken at the bank. Many of the drillers have assumed barrel prices of $70--$100 in calculating their ROI. Now that oil is going for $50 their calculus -- and their investments -- are a bust. This was a predicted outcome, incidentally. And never mind the acceleration of global climate change this increased production of dirty, cheap, carbon producing fuel will cause. The species is marching happily forward, incurious and tawdry in its pursuit of a shallow culture. The NYT is characteristically befuddled by this complicated question. But The Economist isnt: economist/…/21635472-economics-oil-have-chan…
Posted on: Tue, 13 Jan 2015 20:23:53 +0000
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