Don’t fall for the lower gas prices and be lulled into a false sense of security. Oil is below $40 a barrel for the first time in 5 years. OPEC met in Algeria and decided to slash production by more than 4 million barrels a day below September levels. However, traders responded and drove down the prices further saying it was too late to affect pricing into early next year. OPEC has not fully implemented the two million barrel cuts earlier this fall as getting all involved to comply will be difficult. For example, Russia and Syria made no plans to comply. But when production is finally reduced then pricing will rise.
Will we repeat the 70’s and ignore the 2008 warnings to move to alternative fuels? I hope not. Lower pricing or not, it is time to make the changes needed for the future. We need alternative fuels to enable a more stable future.
Filed under: Economics
