Oil: Perverse incentives

The world might not be able to get enough oil out of the ground. That is the gloomy conclusion of an upcoming report from the authoritative International Energy Agency, according to the Financial Times. Ironically, the best cure for this problem may be lower prices. The IEA notes that production from mature fields is falling at an alarming 6-9% annual rate. New discoveries could compensate – the IEA doesn’t believe in the peak oil theory – but the agency thinks recent investment has been too me...