Oil Prices Are Rising Again, But Will They Keep Going Up?
May 06, 2015
… And he says Saudi Arabia could see it too, and it decided to let oil prices crash. “What the Saudis could see was new forms of renewable energy consumption — windmills, tidal power, solar power and the Tesla,” Verleger says.
He says in the longer term, electric cars and those other technologies could mean less demand for oil. Shorter term, the global economy has slowed and that means less thirst for oil right now. At the same time, with fracking the U.S. is now rivaling Saudi Arabia as an oil superpower.
… So he says the Saudis now want cheaper oil, in part to slow down the fracking revolution in the U.S. — and to signal to the developing world: Don’t worry — you don’t need to invest in alternative energy. You can buy cheap oil from us.