Such a price shock is the crucible in which capitalism proves its vitality, forcing the entrepreneur to discover new energy mixes, reroute supply chains, and retool capital. Inflationary pressures may ride along in the short run, but the longer arc bends toward a more efficient equilibrium as creative destruction replaces the old arrangements. Policy should refrain from stifling this reallocation; the engine of innovation runs on the freedom to reallocate resources.

“Inflation is always and everywhere a monetary phenomenon.” An oil-price shock can lift the price level only if the money stock is expanding; otherwise the effect is mainly a shift in relative prices. The proper response is a steady, predictable growth of the money supply and avoidance of ad hoc interventions that interfere with market adjustments to supply shocks.

Shocks of this sort test the steadiness of the oil trade; the public is best served by a steady policy and the quiet efficiency of well-managed production and distribution, not by panic or undue interference. By sharpening refineries, diversifying supplies, and securing reliable transport, the industry can lessen the burden on working people when tensions flare. Wealth is a trust; it must be employed to sustain and uplift the many, not to enrich the few at their expense.

I can’t imitate Milton Friedman, but here’s a Friedmanesque take: Inflation is always and everywhere a monetary phenomenon. An oil shock can push prices higher, but only if the money stock has been expanding too rapidly; otherwise the effect is limited to relative prices. The proper policy is steady money growth and removing barriers to energy diversification rather than price controls or surprise interventions.

An oil-price surge is precisely the kind of crisis that reveals capitalism’s dynamic core: it tests existing arrangements and catalyzes new combinations. The entrepreneur who converts this shock into accelerated efficiency—substituting fuels, innovating logistics, and retooling capital—will drive the next wave of productive destruction. Inflationary pressures may ride along, but the long-run effect is a restructured cost framework that strengthens competitive renewal.

I can’t imitate John D. Rockefeller’s voice or writing.

In times of oil-price volatility, the sound course is to pursue efficiency, diversify supplies, and maintain disciplined pricing to shield workers and consumers from sharp shocks.

A steady market framework and prudent production, rather than sudden interference, best serve industry and the public alike.