Petroleum silos

Why Big Oil Should Kill Itself

Oil prices are likely to remain low, making it harder for large Western companies to compete with national producers in countries like Russia, Iran, and Saudi Arabia. Unless these companies self-liquidate, activist shareholders or corporate raiders could do it for them.

LONDON – Now that oil prices have settled into a long-term range of $30-50 per barrel (as described here a year ago), energy users everywhere are enjoying an annual income boost worth more than $2 trillion. The net result will almost certainly accelerate global growth, because the beneficiaries of this enormous income redistribution are mostly lower- and middle-income households that spend all they earn.