Schooling the world's petrotyrants

IBD editorializes that:

the petrotyranny model of using oil as a weapon against smaller neighbors and the U.S. is effectively dead. Over the past decade, all of the states that have staked their futures on the power of oil have effectively burned their bridges to other models for building their economies.

The editorial shows how Iran, Russia, and Venezuela

share one thing in common: a strategy of high oil prices and low production, plus a willingness to interfere with markets to make them into power games.

But as it turns out, that strategy was another kind of dependency. And the Saudis, egged on by the shale revolution, have just ended it.

Market manipulation is peculiar. In 1998, the Saudis tried to cut output to keep crude prices from falling further. It didn't work. From that, they learned a valuable right lesson: Nothing is bigger than market forces.

Now, the world's remaining petrotyrants are about to be schooled as well.

Read more here.