The Next Oil Shock

Energy Policy: A top expert tells Congress that oil will be around for a long time and high inventories and low prices are no excuse not to find more. Oil shock? How about a no-oil shock?

Be careful what you wish for, goes the old proverb. Well, as we all had hoped, energy prices have fallen

Daniel Yergin, chairman of HIS-CERA, testified before the Joint Economic Committee of Congress last week that we have already experienced a “demand shock” with very high prices driven by rising global demand led by the economies of China and India.

We’ve also experienced what he calls a “recession shock” with flat or falling demand and low prices. But there might be another “long aftershock” in our future with high demand returning with a vengeance along with a global economic recovery, leaving those who buried their heads in the oil sands in the economic lurch.

Investors.com