ISSN 2736-1586
African Journal of Geography and Regional Planning ISSN 3627-8945 Vol. 5 (10), pp. 001-003, October, 2018. © International Scholars Journals
Short communication
Is cheap oil a poisoned chalice?
James Leigh
University of Nicosia, P. O Box 24005, 1700 Nicosia, Cyprus. E-mail: [email protected]. Tel.: + (357) 22841500.
Accepted 09 April, 2018
Abstract
The collapse of oil prices by 76% from July 2008 to January 2009 has brought apparent economic relief to both many developed and developing countries around the world. However, this precipitous collapse in price has stalled investment in the oil industry – many maintenance or development projects have been shelved or cancelled completely. So the decline in oil supplies will be even faster than we had originally anticipated. As future demand for oil picks up again from renewed economic development, the prices of crude oil are expected to soar to new record highs.
Key words: Oil price, oil supply, oil demand, economic development, Olduvai theory, peak oil.