High supply

(cont'd)

A barrel of oil costs far less all over the world now than it did just a couple of years ago, resulting in global benefits (yesterday's post).  But why did that happen?

There's more than one thing contributing to it, but the first event was this - oil industry innovation.  New fracking technology enabled American companies to extract oil from rock at lower cost. Therefore, much more oil came on the global market. 

With bigger supply, the worldwide price began to fall. Normally when oil prices fall, Middle Eastern oil producers slow down their production to reduce the worldwide supply until prices come back up. This time they did not slow down. So worldwide supply stayed high, oil prices stayed low.

When people (not just Americans) have ordered, lawful freedom, they can come up with ideas that make things better, that create wealth for themselves and for society.