Oil Prices Have Reached Their Break Point
Daniel Yergin, Cambridge Energy Research Associates | May 28, 2008
There are three factors underlying the current rise in oil prices: rising global demand, increased costs for oil producers, and the relatively short time span in which supply has yet to adapt to these increased pressures. ++ Timely and efficient investment needs to be encouraged in resource-holding countries to improve supply. ++ However, oil has already reached its break point and is starting to lose its dominance in ground transportation, as public policy, corporate strategy, and consumer response move towards more efficient alternatives.
