Back in October 2009 cartoonist John Kinhart published this comic strip that had an outing then on The Oil Drum. I have used this extensively in my University teaching materials as it still manages to sum up the complexities of the energy and economic situation in a charmingly simple way, as poignant today as it was 5 years ago.
At this juncture I think it is safe to say that $110 / bbl suited the producers, especially the high cost producers, much more than $60 / bbl. And that $60 / bbl suits the consumers much more than $110 / bbl ever did (all prices notionally in Brent that symbolically no longer exists as a major oil field). Consumers will eventually learn that there is not enough $60 oil to go round.
Roger and I are winding down for the holiday season. We will have a few small posts like this one over the next couple of weeks. We wish all our readers the very best for this Christian holiday season of massive consumption. We hope you are safe, well, with family and friends and have enough bread on your table in this increasingly fractured and polarised world that we live in.