| John Hofmeister, former president of Shell Oil USA, was opining on cable TV on Friday about the rebound of the oil industry and the need for prices to stabilize, saying “the volatility is killing the industry”. Like many, he notes that price volatility makes planning, investment and operations difficult.
This is a common complaint, not just among petroleum companies but governments of both oil importers and exporters. As far back as 1986 I found myself arguing that “volatility” had become a code word in the petroleum industry, with no one really interested in stability. Rather, consumers wanted low prices, even if volatile, and producers wanted high ones...............................................Full Article: Source
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