It seems very good news. Historically low price of energy reduces production costs especially with an extremely tech world as the current. But now the paradigm is completely contrary, the financial economy governs the world relegating industry and agriculture to a second order. Today buy and sell moves the world not produce.
Oil is one of the more products that financial markets buy and sell, and it mean that follows the marked rules in terms of price. But oil had an artificial price. When created OPEC, it was grouping major countries which had greater oil reserves by the standards of that time; it created a Mega Dumping that killed the oil market, because if the price down production stopped and this turned up. Since the 70s the world energy economy has been captive to the decisions of these countries. Although now it's different, most of these countries have imposed economic plans that are viable only if they maintain the current flow of oil sales, which is impossible now due to the drop in demand for crises; current plans of these countries haven’t way to agree with lower production and lower price. On the other hand high prices of oil, and the constant research in mining technology open opportunities a new extraction techniques such as fracking, which are allow extracting oil from sources discarded until now, he expanded existing reserves; they have flooded the market of oil not controlled by OPEC.
Oil is one of the more is one of the many goods that are bought and sold every day. Its consumption is closed to us. Every day thousands of drivers fill the tanks of their derivatives: gasoline. But fuel prices don’t decrease of the same magnitude to the oil prices. The reason is very simple oil sold today was bought six months ago for the price of seeds. Before the summer oil Brent was above $100 but today is near to the $80. It will be great news to the drivers when prices will arrive in fuel delivers, but it would be a disaster in in the medium term for their pockets.
After financial crisis, oil has become to the safe value. Equal to buildings before which “never will down its prices”; oil will become an “undownable” value where invest the money. Today, oil is bought years away (in futures market), with the premise the consumption is always increasing and sources are finites (in short time added). But consumption is downing by crisis and it never will increase because Climate Change fight needs the reduction of CO2 emission; so oil, coal and gas must be decreasing to waste; obviously finite sources don’t matter if we don’t burn oil.
The disaster is inevitable. Reducing emissions means massive drop in oil consumption; and change the oil producing states and need not lower turnover if they want to keep their financial statements balanced. A disaster in the financial statements both imply losses for shareholders as the oil company as the public debt of oil-producing countries. But oil futures bought not only affects oil world, were going to the oil escaping from the financial bubble, and generating the current carbon bubble. If the oil price falls, pension or investment funds also fall with them; and considering how some leverage financial products with other, whole financial house of cards will fall, winding the economy.
Obviously this reduction is attempted in the maximum delay time, but there is no time because climate change isn’t knocking the door, it’s entering. Noteworthy is that the Rockefeller Family leaves the business that made them millionaires; and there is more movement in this direction. Today oil and coal and gas, are beginning to falter. For years experts predict the probable Oil Bubble and when it explodes it will be more devastating than the financial. At the moment winter is coming in North Hemisphere but prices are still downing.