While the production side is exciting (if you're not an OPEC member), the consumption side is making strides as well. Vehicle average fuel economy has never been higher. Electric cars produced by General Motors (GM), Ford (F), Tesla Motors (TSLA), Toyota (TM), and others, either partially or totally remove the need for petroleum-based propulsion. Additionally, natural gas powered vehicles are now reaching consumers from Ford and General Motors.
Examining the long overdue thawing of Iranian relations leads me to only one obvious conclusion. Iran's return as a world production provider simply increases supply and stability, which in turn lowers the fear premium and the true cost of energy. I would like to imagine a prosperous Iran having a lower propensity for war, but that's for them to decide.
Taken as a whole, OPEC's days aren't numbered, but its ability to dictate prices and hold consuming nations hostage as hostage is.
At the time of publication, Weinstein had no positions in securities mentioned.Follow @RobertWeinstein This article is commentary by an independent contributor, separate from TheStreet's regular news coverage. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
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