The year 2014 will be remembered for an unprecedented juxtaposition of events. Two oil-producing countries in the Middle East were in a state of crisis. Relations between the West and Russia slumped to a new Cold War low. And oil prices have slumped, to $66 a barrel for Brent Crude this morning, half its recent peak. This didn’t used to happen. The modern history of oil prices is characterised by a series of spikes, each one coinciding with a crisis in the Middle East. It is a mark of how US shale gas and oil production has changed the oil market – and thus the prospects for the global economy. Never has a theory collapsed so quickly as Peak Oil, the idea that fossil fuel prices would rise inexorably as supply failed to keep track of demand. Even as late as 2011 the US had a trade deficit in […]