The oil price falls yet again. This time the latest drop is due to what is happening in China. This site has put various theories for the oil price falls over the last year. A price fall that took almost everyone by surprise, including us. Yes the US Shale oil production rise has been huge. However, in the past the Saudis have cut production to raise prices. This time they have not something which is beginning to look difficult for them.
Currently with a possible economic crash in the offing the oil price falls look set to continue for some years. This is both good news and bad news. Its bad for frackers and bad for the future oil supply since investment will be low. Bad for renewables potentially, although prices are still falling fast. Certainly bad for nuclear power. Probably good overall for the climate since a slow down will mean less energy use (although getting an agreement in Paris maybe harder). Good for food and energy prices, which is good news for the world’s poorest. Etc etc….
Its looking like, although peak oil is not dead (obviously), the oil price will be low for some years yet.