Thank you for this timely article! If world demand turns out to be fairly inelastic in the short run (as I would argue), the price for fossil fuels will continue its upward path, despite volatility, and marginal projects come online until near 'unity' when production no longer makes sense and the resource stays in the ground. 'Near unity' is probably 2:1 at best given overhead, hidden costs, etc.

What I find interesting about this line of research is that it informs us about the bottom line of production; further, we can see the difficulty producers face when market volatility is so wild, no effective planning for marginal production is possible without a proverbial 'risk analysis' appendix.

Volatility, in this sense, is a form of inefficiency...

I wouldn't be surprised by talk of further 'controls' over price, markets, etc. as this problem becomes more chaotic.