Could tight oil mean the end of big oil price spikes?
Could tight oil mean the end of big oil price spikes? / Michael Levi, Energy, Security and Climate, 18/02/2014
The current Economist has an article on U.S. oil and gas that repeats an increasingly common view: tight oil will make “future oil shocks less severe” since “frackers can sink wells and start pumping within weeks”. (Here’s a variant from The Atlantic last August.) That speedy response means that “if the oil price spikes, [drillers will] drill more wells”, quickly spurring new production, and taming any price spike…