Economy 52,861 Posted April 3, 2016 Share Posted April 3, 2016 http://seekingalpha.com/article/3962779-u-s-shale-production-will-remain-strong-midst-bankruptcies-lower-rig-count While 10 years ago the fear was that we were gonna hit peak oil, have supply problems and have $200 to $300 a barrel of oil... Instead were running out of storage, oil cant get above $40/barrel and supply seems endless Technology has unlocked so many new reserves, and increased well productivity and production costs in Shale (and oil sands to an extent) have fallen so much, that a long term average price of more than $50 to $60 a barrel (in todays dollar value terms) seems virtually impossible additionally efficiency and the rise of renewables has reduced annual consumption growth from 3% annually to only 1% to 1.5% each year. Only natural disasters in oil producing area, an unexpected massive economic boom, or terrorist attacks in production wells could cause a spike now. Link to post Share on other sites More sharing options...
venusfly 17,885 Posted April 3, 2016 Share Posted April 3, 2016 honestly im glad its not so valuable anymore. I'm not an economist so I don't know the effects this will have? but from the naive standpoint of mine the increase in longevity of the supplies of oil into the future while we're still adapting to a reality of one day not having adequate supply seems like a good thing, not to mention the constant fighting over oil countries engage in Link to post Share on other sites More sharing options...
holy scheisse 22,939 Posted April 3, 2016 Share Posted April 3, 2016 Great, cheap oil. Now we can deter the advancement of new and safe energy sources even longer! Link to post Share on other sites More sharing options...
CaliLilMonster 476 Posted April 3, 2016 Share Posted April 3, 2016 Why is the price of gas going up again then? Link to post Share on other sites More sharing options...
Economy 52,861 Posted April 3, 2016 Author Share Posted April 3, 2016 15 minutes ago, LG said: honestly im glad its not so valuable anymore. I'm not an economist so I don't know the effects this will have? but from the naive standpoint of mine the increase in longevity of the supplies of oil into the future while we're still adapting to a reality of one day not having adequate supply seems like a good thing, not to mention the constant fighting over oil countries engage in Its obviously bad for producers but for the world as a whole yes cheap energy is good As for what you said about one day having supply issues, at current consumption with the kinds of reserves were unlocking, serious supply issues will not happen within our lifetime Quite possibly these sources could serve us well for the next 100-200 years but given that electric cars will probably become a thing within next decade or two, oil consumption would fall 40% from personal vehicles alone... Other uses for oil could gradually be replaced eventually also So even if we hit peak oil (peak in production), it does not matter if production falls globally as long as demand falls with it Link to post Share on other sites More sharing options...
Economy 52,861 Posted April 3, 2016 Author Share Posted April 3, 2016 17 minutes ago, holyscheisse said: Great, cheap oil. Now we can deter the advancement of new and safe energy sources even longer! Well that was innevitable even if we didnt unlock new reserves, if demand started falling prices would fall and in turn slow the pace of renewables growth but thats simple economics. It wont stop the development of green alternatives. It merely slows it tho Link to post Share on other sites More sharing options...
Economy 52,861 Posted April 3, 2016 Author Share Posted April 3, 2016 17 minutes ago, CaliLilMonster said: Why is the price of gas going up again then? #1 Gasoline is not oil, its an oil product. It still has its own seperate market and it still has its own supply and demand Gasoline is the oil product that has seen the most demand growth since prices fell. We have tones of oil but the number of refinaries that turn oil into refined products has not grown as much as the oil supply itself. Thats why oil storage stocks are growing faster than destalites (refined products) #2 Governments keep adding more and more taxes into gasoline. Much of what you pay at the pumps in most Countries in most States is taxes not the cost of retail gas itself Link to post Share on other sites More sharing options...
TiphEret 1,320 Posted April 5, 2016 Share Posted April 5, 2016 Please Canada find another industry so you don't depend on oil so much. I need the CAD to go higher soon! Sur le sable sur la neige, Sur les images dorées,Sur le front de mes amis, J’écris ton nom Link to post Share on other sites More sharing options...
Pierre 10,480 Posted April 5, 2016 Share Posted April 5, 2016 Pray for my poor country ❝Is not blue, not turquoise, not lapis. It's actually cerulean❞. Link to post Share on other sites More sharing options...
Economy 52,861 Posted April 5, 2016 Author Share Posted April 5, 2016 10 hours ago, TiphEret said: Please Canada find another industry so you don't depend on oil so much. I need the CAD to go higher soon! Noooo. If the CAD goes higher right now the manufacturing of non-energy exports which is fibally starting to improve will be held back we need manufacturing to pick up again and stand on solid footing before getting a higher currency again and we need to work on ways to remain competitive so that when currency goes higher we can still export. Its not good to rely on a weak currency to be able to produce cuz u have to sacrafice purchasing power that way Link to post Share on other sites More sharing options...
TiphEret 1,320 Posted April 5, 2016 Share Posted April 5, 2016 30 minutes ago, Economy said: Noooo. If the CAD goes higher right now the manufacturing of non-energy exports which is fibally starting to improve will be held back we need manufacturing to pick up again and stand on solid footing before getting a higher currency again and we need to work on ways to remain competitive so that when currency goes higher we can still export. Its not good to rely on a weak currency to be able to produce cuz u have to sacrafice purchasing power that way Ok well I don't know enough about currency so I trust you. Maybe we should just have our local currency in Montreal it could make things easier Sur le sable sur la neige, Sur les images dorées,Sur le front de mes amis, J’écris ton nom Link to post Share on other sites More sharing options...
Economy 52,861 Posted April 5, 2016 Author Share Posted April 5, 2016 2 hours ago, TiphEret said: Ok well I don't know enough about currency so I trust you. Maybe we should just have our local currency in Montreal it could make things easier Currency is a tricky thing, its value influenced by many things a higher currency is always better as long as your economy can handle it and be competitive enough for it if you are not competitive enough tho, a high currency makes it hard to export, it also emcourages buying stuff from abroad because its cheap to buy from outside and you dont produce anything at home an overvalued currency that your country cant handle can be a huge job killer but if its too low for your economies performance, it can cause inflation problems Link to post Share on other sites More sharing options...
.thumb.jpg.99c40bc2a10ded8236a48b4fe15c6be8.jpg)
Featured Posts
Archived
This topic is now archived and is closed to further replies.