Advancing technology turns scarcity into abundance, in this case by finding a way to get oil out of rock buried a mile deep. Because shale drilling productivity is off the charts due to rapid improvement, and because U.S. shale reserves are huge, it appears that U.S. producers will not only break the OPEC cartel for all time, but will go on to become the world's lowest cost producers. In a way, this is just an early version of what will play out when renewable power disrupts fossil fuels:
(1) Traditional energy stocks will get driven to zero (this has already happened with coal stocks)
(2) The pre-tax price of oil will get driven to zero (this will do more to eliminate terrorism than anything else so far)
(3) Oil gets left in the ground for all time
This might sound bad for Tesla shareholders, but it's really not. Federal and state governments will jump at the chance to tax oil, gasoline and diesel for badly needed road improvements, keeping fuel prices in the $2.50 per gallon range. And Tesla vehicles will increasingly be sold on their style and performance benefits.