Also popular: Is the Shale Bubble already beginning to burst?

Also popular: Is the Shale Bubble already beginning to burst?

Also popular: Is the Shale Bubble already beginning to burst?

It was good ol’ Shell Oil geophysicist Marion King Hubert who pointed out that as the harvest necessarily moved on from easier-to-exploit sources of oil to more expensive sources of oil the economic machine would seize up. The price of oil rose to allow the more unconventional sources to be mined. The high prices would short circuit the economic machine. as is, arguably, happening today. If oil goes back to $150 a barrel in the years ahead, count out any kind of economic recovery. If oil spikes again, the economy will slow and sag as it did in 2008 (when oil went to over $140). Consumers pull in their spending to buy energy. The recession returns. Many more people wake up to the fact that the economy is now trapped in a now permanently, sluggish, slow-growing cycle of “price spike-recession-recovery-price spike-recession.” 


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