Obstacle: Market Signal Interference
Normal market signals to invest in new production are being short-circuited.
Wall Street hesitant to trust in new situation
- Equity valuation disconnected from forward prices
- Capital diverted to stock buybacks, debt repay, acquisitions
Poorly timed producer hedging reducing cash flow
Well timed consumer hedging supporting demand
Government interference/threat of re-regulation
- Price controls/caps exacerbate problem in long-run