{"id":2659,"date":"2014-12-09T06:34:35","date_gmt":"2014-12-09T11:34:35","guid":{"rendered":"http:\/\/olduvai.ca\/?p=2659"},"modified":"2014-12-09T06:34:35","modified_gmt":"2014-12-09T11:34:35","slug":"ten-reasons-why-a-severe-drop-in-oil-prices-is-a-problem-our-finite-world","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=2659","title":{"rendered":"Ten Reasons Why a Severe Drop in Oil Prices is a Problem | Our Finite World"},"content":{"rendered":"<p><a href=\"http:\/\/ourfiniteworld.com\/2014\/12\/07\/ten-reasons-why-a-severe-drop-in-oil-prices-is-a-problem\/\">Ten Reasons Why a Severe Drop in Oil Prices is a Problem | Our Finite World<\/a>.<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">Not long ago, I wrote\u00a0<a style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; color: #0066cc; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\" href=\"http:\/\/ourfiniteworld.com\/2013\/01\/17\/ten-reasons-why-high-oil-prices-are-a-problem\/\">Ten Reasons Why High Oil Prices are a Problem<\/a>. If high oil prices can be a problem, how can low oil prices also be a problem? In particular, how can the steep drop in oil prices we have recently been experiencing also be a problem?<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">Let me explain some of the issues:<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\"><strong style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; font-weight: bold; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\">Issue 1. If the\u00a0price of oil is too low, it will simply be left in the ground.<\/strong><\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">The world badly needs oil for many purposes: to power its cars, to plant it fields, to operate its oil-powered irrigation pumps, and to act as a raw material for making many kinds of products, including medicines and fabrics.<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">If the price of oil is too low, it will be left in the ground. With low oil prices,\u00a0production may drop off rapidly. High price encourages more production and more substitutes; low price leads to a whole series of secondary effects (debt defaults resulting from deflation, job loss, collapse of oil exporters, loss of letters of credit needed for exports, bank failures) that indirectly lead to a much quicker decline in oil production.<\/p>\n<div>&#8230;click on the above link to read the rest of the article&#8230;<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Ten Reasons Why a Severe Drop in Oil Prices is a Problem | Our Finite World. Not long ago, I wrote\u00a0Ten Reasons Why High Oil Prices are a Problem. If high oil prices can be a problem, how can low oil prices also be a problem? In particular, how can the steep drop in oil [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[260,588,592,595,723],"class_list":["post-2659","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-employment","tag-oil","tag-oil-price","tag-oil-production","tag-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2659"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2659\/revisions"}],"predecessor-version":[{"id":2660,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/2659\/revisions\/2660"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=2659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=2659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}