| Menago KF said: The thing is that during the 150$ per barrel period most oil companies said that they would use the extra money for investments in production of oil. Unfortunately for us, most big companies got greedy, and instead of actually modifying their technology, they started buying out their own stock market shares for all that money, just to get more money in the future. Now, when the oil prices dropped like a rock, the whole procedure bit them in the ass, but unfortunately, it will bite us as well. |
That period was so short that I doubt it could have much impact. Besides, even if they had started a lot of new projects they would most likely be stopping them now that the recession is reducing oil demand.
The big problem is that when the economy starts getting better there will be lack of supply, which may well prevent the economy from healing. This is why governments have to force investment in renewables and public transportation even though energy is cheap right now.
Whether I trust that this will happen is another question entirely... Some countries will cope better, some will cope worse. All will suffer because a lot of our crucial activities are still dependant on oil (farming for example).
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