The Hidden Risk of Plummeting Oil Prices: War

[eridani]

http://www.thenation.com/article/the-hidden-risk-of-plummeting-oil-prices-war/

As 2015 drew to a close, many in the global energy industry were praying that the price of oil would bounce back from the abyss, restoring the petroleum-centric world of the past half-century. All evidence, however, points to a continuing depression in oil prices in 2016—one that may, in fact, stretch into the 2020s and beyond. Given the centrality of oil (and oil revenues) in the global power equation, this is bound to translate into a profound shakeup in the political order, with petroleum-producing states from Saudi Arabia to Russia losing both prominence and geopolitical clout.

To put things in perspective, it was not so long ago—in June 2014, to be exact—that Brent crude, the global benchmark for oil, was selling at $115 per barrel. Energy analysts then generally assumed that the price of oil would remain well over $100 deep into the future, and might gradually rise to even more stratospheric levels. Such predictions inspired the giant energy companies to invest hundreds of billions of dollars in what were then termed “unconventional” reserves: Arctic oil, Canadian tar sands, deep offshore reserves, and dense shale formations. It seemed obvious then that whatever the problems with, and the cost of extracting, such energy reserves, sooner or later handsome profits would be made. It mattered little that the cost of exploiting such reserves might reach $50 or more a barrel.

[pampango]

1. Great article. When oil prices are low, war is a 'great' way to boost them. When prices are high,

war is a 'great' way to acquire control of a valuable resource. For war mongers, any price for oil is a 'great' excuse to launch a war.

[Frank Cannon]

4. War and tax cuts are ALWAYS the answer.

The fact that both have brought us nothing but misery over the last fifty years only proves that we need MORE of them in order to feel their wonderful effects.

[bemildred]

2. +1. nt

[bullwinkle428]

3. How utterly depressing. Looks like we're "screwn" either way.

As the Keystone pipeline becomes a non-issue, we have to think about what may be done to fire up the country into entering another war.