Goildilocks and the Bears – oh for an oil price that is “just right”

Last week my reading caught two articles. Low oil prices will cause political upheaval and unrest and high oil prices will cause…

yes, you guessed it, political upheaval and unrest.

1) Carbon ‘bubble’ could cost global economy trillions in which the journalist reports on a report – this is an annoying modern (?) trend where there is no analysis – just “he said, she said” reporting. But I’ll stay off my soap box on that one for now…

The underlying research by a Cambridge academic can be paraphrased as a reworking of the “stranded assets” theory – that the rapid transition away from fossil fuels will leave assets stranded or dirt cheap due to a “a rapid sell off, of oil and gas reserves by producing countries eager to get rid of the fuels before they become worthless.” Ergo a massive tranche of the world economy is removed (since oil is a trillion $ business) and the resulting massive budget defecits in oil producing countries will cause political upheavel and unrest.

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