Via: Source

BUY! BUY! BUY! Renewable energy assets that is (or oil, I mean, why not right), as news comes out of the IEA that a world-wide glut of oil create stagnant prices for the foreseeable future. Indeed, since last November OPEC initiated a number of strategies with aim at curbing oil production in many competing, oil-producing countries. Especially those that get their oil from shale, by fracking, because the price margins on that practice are much, much narrower.

And it appears that those initiatives have been working as intended, because despite the on-set of the summer travel season and its usual bump in prices, international oil supplies are keeping those rates lower than in years passed. Basically, because the 12 countries in the OPEC syndicate can create oil at lower prices than their competitors, if they do not slow down production, other countries will be forced out of the oil business, and reliance on OPEC-produced oil will once again rise.

What would the consequences of this be? It’s hard to tell. Energy dependence is a tough spot for any sovereign nation to be in, but even if OPEC does manage to squeeze out much of its competition, how much would that drive up dependence on their products? As we stated at the beginning of this article, renewable sources of energy like wind, water, and solar are becoming more viable from an economic standpoint every day. Will those resources bridge the energy demand that OPEC seems to be stoking? What do you think? Let us know in the comments section.