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Those people are called politicians :smile:some people appear unable to see more than the very short term future...
this cartoon is funny, as it reminds me of the opposite reaction from the majority of redditors at r/cars....
they're just bowled over that SUV and pickup sales are shooting up, as it seems the ignorant masses don't understand how temporary these 'low gas prices' really are.
some people appear unable to see more than the very short term future...
There is at least one hypothesis / theory around that would lead to two surprising outcomes over the next several years - that being low oil prices and the associated low exploration for new oil fields and wells.
That hypothesis is a different take on peak oil - that we've reached peak demand for oil, and that as more efficient vehicles and alternative fuel vehicles hit the streets, that demand will keep shrinking until we suddenly realize with certainty that we won't be pumping all of the oil that we know about right now out of the ground and burning it.
If you're an oil & gas executive today and you believe that will happen, then the correct financial conclusion is two-fold. Cut back on the more speculative exploration efforts, and on new sources that will be expensive to exploit (Canadian oil sands comes to mind), while simultaneously pumping oil from the wells that are already producing as fast as you have a buyer for that oil. Because when the music stops, whoever still has oil in the ground won't have a buyer for it, and that economic asset will suddenly be without value.
I don't actually know that this is what's going on in decision maker's heads, but it's one explanation for Saudi Arabia's behavior that makes more sense to me than alternative explanations, as it is internally consistent and doesn't need any other than self-motivation to explain what they're doing.
And to the degree that this view of the world takes hold in other oil producing companies and nations, everybody with an oil well that costs little to operate (marginal cost of a bbl of oil is low) will keep on running it. I can see oil going a lot lower from here.
And low oil & gas prices does bring out the SUV and pickup buyers.
i dont see how ppl can believe we're near peak oil demand when emerging countries like INdia, China and much much more are using more oil than ever.
but peak supply of oil? yep, i believe that. and it's gotta be ugly.
in terms of SA trying to sell all its oil for those reasons....i'd believe that if the country had something other than oil to base their economy on...but i dont see it. without oil, the vast majority of OPEC quite literally has nothing else.
i mean, im literally trying to think of an OPEC country that has its **** together...
I just need to make one correction. Our electricity prices just went up by 37% in November. I was hoping it was just the distribution, but no; the whole bill. 23.5/kWh. I know eventually gas will go back up, but I can drive a gas car for less than the Tesla now. So you can't count on electricity prices to be that stable either. I do not expect it to come back down.
Wow, that is an awful price for electricity. Do you have any option for rooftop solar?I just need to make one correction. Our electricity prices just went up by 37% in November. I was hoping it was just the distribution, but no; the whole bill. 23.5/kWh. I know eventually gas will go back up, but I can drive a gas car for less than the Tesla now. So you can't count on electricity prices to be that stable either. I do not expect it to come back down.
i mean, im literally trying to think of an OPEC country that has its **** together...
The electricity price increase in New England is driven by the very high electricity prices from last year during the Polar Vortex. (Retail prices are locked in by annual auctions, and forward markets were pricing 2015 winter power with a strong memory of the 2014 prices.) 2014 prices were high because (a) oil prices were high, and oil distillates are used as the marginal fuel in New England, and (b) natural gas supply is constrained by inadequate pipeline connections to New York. Cause (a) is being rectified by the Saudis. Cause (b) is being rectified by planned pipeline upgrades, albeit not for a few years yet. So, I do think we'll see New England power prices return to more usual levels.I just need to make one correction. Our electricity prices just went up by 37% in November. I was hoping it was just the distribution, but no; the whole bill. 23.5/kWh. I know eventually gas will go back up, but I can drive a gas car for less than the Tesla now. So you can't count on electricity prices to be that stable either. I do not expect it to come back down.
The electricity price increase in New England is driven by the very high electricity prices from last year during the Polar Vortex. (Retail prices are locked in by annual auctions, and forward markets were pricing 2015 winter power with a strong memory of the 2014 prices.) 2014 prices were high because (a) oil prices were high, and oil distillates are used as the marginal fuel in New England, and (b) natural gas supply is constrained by inadequate pipeline connections to New York. Cause (a) is being rectified by the Saudis. Cause (b) is being rectified by planned pipeline upgrades, albeit not for a few years yet. So, I do think we'll see New England power prices return to more usual levels.