Economic principles never change. As an old, quite successful commodities trader told me years ago, the cure for high prices is high prices.
As noted here high prices bring competition and competition begets innovation. And most of us know just one of the benefits innovation brings can be creature comforts like not having to get up and walk across your living room every time you want to change channels on your television. It's a basic, simple now-taken-for-granted once upon a time innovation.
So the guy works for BP. So what?
If you want to get a better handle on energy markets, these two articles are must reads.
The primary role, intended or otherwise, governments play isn't regulation or protection. It's stifling innovation. Incentives that foster wrong, unwanted and often dangerous results are just one example.
The Federal Drug Administration worries about bad medicines instead of spending more time focusing on bad regulations is another.
http://www.linkedin.com/today/post/article/20130730080645-259060403-oil-boom-2-0-an-american-dream-updated?_mSplash=1
http://online.wsj.com/article/SB10001424127887323309404578613792021690244.html?mod=ITP_opinion_0
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