When oil prices are high, you have to add emerging technologies that convert natural gas directly to gasoline to the equation. All these other sources coming on line, combined with competition-inspiring lost market share for traditional oil, would have to cause a price collapse. The problem for environmentalists is many of their cherished conservation and alternative energy programs are predicated on high and rising prices. Buried deep within their energy schemes are silly oil price assumptions. Low oil prices alarm environmentalists because they will, they say, discourage conservation and encourage driving.
Low prices make solar, wind, and other favored renewables look expensive.
Which they are. In fact, low oil prices are good for the environment for three simple reasons. First, cheap energy will inspire cheaper alternatives. Fundamentally, new technologies replace old ones over time when the new ones are better. Second, cheap energy caps inflation.