Why does the price of oil start fluctuating wildly around 2004-2006? Shouldn’t the unlimited supply of shale oil mean the graph should be going down to at least pre-2000 prices? Why did it start around 2005-2006?
https://preview.redd.it/vjxeekte10hc1.png?width=1323&format=png&auto=webp&s=f2832aae24e87a679e5346e81d2ee0ec30f6b400
You can play around with the data here: [https://fred.stlouisfed.org/series/POILBREUSDM#0](https://fred.stlouisfed.org/series/POILBREUSDM#0)
Interestingly, the graph for natural gas looks exactly like what you would expect from huge new reserves being brought online after 2006. See it here: [https://fred.stlouisfed.org/series/DHHNGSP](https://fred.stlouisfed.org/series/DHHNGSP)
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Source: Bumpy110011