The J curve theory is as old as time.
It is doubly applicable to industries like oil.
Here is the most important paragraph in that article.
The much greater danger is that global spare capacity has dropped to wafer-thin levels as Russia and Opec fight for market share, as projects are shelved across the world, and as old wells are depleted.
It is not the price collapse that worries the IEA: it is the prospect of a global shock when the Saudis have flushed out rivals and the market springs back violently.
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