Comment left on his piece today:
"Economists tend not to see the problem. As the oil price goes up, they assume more cash will be available for exploration, the oil majors will duly explore, and they will find more oil."
Eh? As an amateur economist only might I point out that you\’re missing something really rather important here? Economists tend to assume that as the price rises then people will use less oil. How much less depends upon hte elasticity of demand an in the short term it\’s pretty inelastic (that is, over a period of months or perhaps a year, a rise in price leads to not much change in demand).
But over longer periods it\’s very elastic indeed, as is the demand for just about anything. Indeed, you\’ve told us so yourself Jeremy: your business is based on the idea that people will substitute for expensive oil with lower cost solar as that technology develops in the next few years.