The upside of high oil prices - Washington Times

The price of crude oil currently hovers around $100 per barrel. This price matches highs reached two years ago and - adjusted for inflation - in early 1980s. Because of turmoil in the Middle East and North Africa, it is likely that the price will rise further.

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High oil prices can wreak havoc on American businesses and consumers. But if they lead to improved energy efficiency and to greater investment in alternative sources of energy, such as natural gas and nuclear power generation, they contribute, albeit in a clumsy and painful way, to reducing our dependence on hostile and unreliable oil-producing countries. The positive features of higher prices manifest themselves in two ways. First, in a market economy, higher prices signal that demand for a good is outstripping supply, providing producers with incentives to increase production of that good in the hopes of maximizing profits.

The upside of high oil prices - Washington Times