Economists like to say the best cure for high prices is, high prices. In the case of oil in recent years, the saying often rings true.
Years of elevated oil prices leading up to 2014, when Brent crude futures traded above $100 a barrel, helped drive efficiency in the industry and other energy sectors, but ultimately led to a supply glut and lower prices.
“That era of high-price oil that we had drove innovations all over the place especially in terms of shale but it also enabled oil operators to make much bigger risks,” said John Kilduff, founding partner of Again Capital.
Now, oil prices are rising again amid rising geopolitical tensions in the Middle East. The recent spike and volatility in prices could serve as a reminder of the benefits of cheaper alternative energy sources. But even as investment in renewables expands, many experts agree the oil era still has room to run. Read More