On December 27, 2013, Matt Wald published a piece in the New York Times titled New Energy Struggles on Its Way to Markets that points to the predictable consequences of having too many energy options chasing too few customers. When there is excess supply compared to demand, prices tend to fall rather dramatically. Falling prices result in some suppliers being forced to either stop selling or to sell their product for an amount that is less than production cost. Eventually, markets balance out as weaker suppliers are driven out, reducing both production and production capacity. Lower prices lead to increased demand and shifts in market share to options that seem to meet customer needs at a lower cost. The oversupply situation disappears and price begin to climb back to a more profitable level. The cycle may continue, but only after a profitable period when supply does not quite match […]