Who would have expected oil to fall to $60/barrel? I guess now that it has happened there will be observers who will be able to say they did – but the commonly held thinking was that oil prices would not fall this low.
One impact of this low pricing is that a number of ‘hard to get’ and ‘environmentally questionable’ sources of oil are being put on the back burner – carbon that will stay in the ground – for now.
Another impact will be on some oil producers. On the large-scale the impact this is having on Russia is significant. It will also have impact on smaller players in the oil business.
Quentin Wilson, the motoring journalist and ‘fair fuel price’ campaigner is reported to have said that the lower price of oil has led to greater sales of motor fuel, giving the government a bonus in taxation.
But before we get too carried away many observers feel that the current price is not sustainable. It is also against a background of significant cost increases being predicted for electricity that are NOT linked to the price of oil.
Whatever the price managing energy will always be essential – it’s just some of the ideas and figures might change.