There is lot of concern on the rise in oil prices, and its impact on global economy. There are plethora of views on Oil Price contribution to slowing down of US juggernaut.
However, i see a change in market dynamics of operation of conventional enery producers coupled with the prominence of green-power sources.
- Higher oil prices can be a good motivator for enterprises to improve their Operational Efficiency
- For years, alternative source source of energy (wind, solar, etc) championed by the people worried about global-warming, has been side-lined until recently because they were too costly to compete. But the soaring oil prices can change the market dynamics.
- These renewable energy can't offer overnight relief to the skyrocketing oil prices, because viable green alternatives are not easy to find. Hydrogen powered cars are not expected to hit the market soon. This will draw the world's attention to the need to diversify energy portfolio and raises people's awareness of the cost of energy and where energy comes from.
Lets understand and operate in an inflationary economy of $100 -plus barrels of oil than worry about its crippling effects on Economy.
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