Economy 52,842 Posted May 28, 2016 Share Posted May 28, 2016 http://www.wsj.com/articles/from-oil-glut-to-shortage-some-say-it-could-happen-1451499384 Experts warn we may transition from over-production and huge oil storage inventories, to an oil shortage in as little as 4 years The reason for this is not because we do not have enough oil. "Recoverable Reserves" with todays technology is at an all time high of 1.7 Trillion Barrels The issue is low prices have stalled investment in new fields which wont replace the current fields as they depleate. Production from each oil field falls 3% to 4% annually (average). It is also increasing demand which is up by 1.8 Million barrels a day this year! By the time prices rebound, there will be a lag between investment and actual oil pumping. In that time, a shirtage and oil price spike may occur! Link to post Share on other sites More sharing options...
Warholian 6,880 Posted May 28, 2016 Share Posted May 28, 2016 Maybe Gaga should cut back on her robot slave machines that dot the globe. Last time I checked ladygaga.com the count was over 19 million machines. Those things are the size of a 12 story building and god knows how much oil that takes up. Moving across the globe is a hard job, especially when you're flying by oil propellant. It's like rocket fuel, but they just burn **** tons of oil. They hop from oil field to oil field, oil tanker to oil tanker. They'll never be quenched. Kevin Parker, Mac Demarco, Mark Ronson, and a stoned Lady Gaga. Need I say more? Link to post Share on other sites More sharing options...
PunkTheFunk 125,703 Posted May 28, 2016 Share Posted May 28, 2016 Are we going to hear LG5 before the world runs out of oil?? Who knows really?? Link to post Share on other sites More sharing options...
RadioIsOurs 13,876 Posted May 28, 2016 Share Posted May 28, 2016 Bullshit. We all know that the oil drilling companies are hiding all that oil so that they could keep oil prices high. Link to post Share on other sites More sharing options...
Economy 52,842 Posted May 28, 2016 Author Share Posted May 28, 2016 6 hours ago, RainbowBlonde said: Bullshit. We all know that the oil drilling companies are hiding all that oil so that they could keep oil prices high. People love conspiracy theories... but being realistic, this could never happen Link to post Share on other sites More sharing options...
RadioIsOurs 13,876 Posted May 28, 2016 Share Posted May 28, 2016 Just now, Economy said: People love conspiracy theories... but being realistic, this could never happen Educate me. Can't they simply drill less oil? Link to post Share on other sites More sharing options...
ryanripley 86,575 Posted May 28, 2016 Share Posted May 28, 2016 6 minutes ago, RainbowBlonde said: Educate me. Can't they simply drill less oil? why would you drill less oil in a world full of 7 billion+ people who demand more oil https://goo.gl/xMgMvJ Link to post Share on other sites More sharing options...
RadioIsOurs 13,876 Posted May 28, 2016 Share Posted May 28, 2016 Just now, ryanripley said: why would you drill less oil in a world full of 7 billion+ people who demand more oil Because the companies only care about the money? Link to post Share on other sites More sharing options...
Economy 52,842 Posted May 28, 2016 Author Share Posted May 28, 2016 3 minutes ago, RainbowBlonde said: Educate me. Can't they simply drill less oil? Drill less yes but hide it like you said no. Theres at least 5 reasons i can think if why simply hiding it could never happen And with low prices its just not economical to drill new fields so companies arent doing it But Hundreds and Hundreds of Oil Companies exist. That means no 1 company alone no matter how large is big enough to significantly affect prices so they wont do stuff to try and manipulate oil market cause they dont have the power they would have to cordinate among themselves. With so many companies it would be impossible to get agreements much less be able to kee things quiet with so many involved So each company follows its own interests and responds to the economics of the market Only OPEC sometimes tries to interfear because they are a cartel and they dont hide it. But even they right now arent cutting production because they want more market share from private companies outside OPEC Link to post Share on other sites More sharing options...
ryanripley 86,575 Posted May 28, 2016 Share Posted May 28, 2016 Just now, RainbowBlonde said: Because the companies only care about the money? but then they'd just end up ****ing themselves over https://goo.gl/xMgMvJ Link to post Share on other sites More sharing options...
RadioIsOurs 13,876 Posted May 28, 2016 Share Posted May 28, 2016 Just now, ryanripley said: but then they'd just end up ****ing themselves over Like if they get caught? But they never got caught. That's why they are still able to continue doing it. Link to post Share on other sites More sharing options...
Economy 52,842 Posted May 28, 2016 Author Share Posted May 28, 2016 6 minutes ago, ryanripley said: why would you drill less oil in a world full of 7 billion+ people who demand more oil 6 minutes ago, RainbowBlonde said: Because the companies only care about the money? Yeah its economics. They pump oil to make money thats all If prices crash like they did the past 2 years its not profitable to drill more for now period. So they wait till demand is higher than supply then they do it Also the small and medium sized oil companies are basically broke right now and borrowing. They cant drill more even if they wanted to. The larger companies that are still fine tho will wait On a side note, i wonder if oil demand will peak before our populatiok does or only after. Were only 35 years away Link to post Share on other sites More sharing options...
ryanripley 86,575 Posted May 28, 2016 Share Posted May 28, 2016 Just now, Economy said: Yeah its economics. They pump oil to make money thats all If prices crash like they did the past 2 years its not profitable to drill more for now period. So they wait till demand is higher than supply then they do it Also the small and medium sized oil companies are basically broke right now and borrowing. They cant drill more even if they wanted to. The larger companies that are still fine tho will wait On a side note, i wonder if oil demand will peak before our populatiok does or only after. Were only 35 years away ah i see https://goo.gl/xMgMvJ Link to post Share on other sites More sharing options...
Economy 52,842 Posted May 28, 2016 Author Share Posted May 28, 2016 27 minutes ago, ryanripley said: ah i see The problem with this is, little new drilling means they arent replacing fields as current ones depleate so soon the oversupply will go away and we could actually potentially have a shortage. the boom and bust nature of the resource business Link to post Share on other sites More sharing options...
Better Day 5,766 Posted May 30, 2016 Share Posted May 30, 2016 On 5/28/2016 at 1:34 PM, ryanripley said: why would you drill less oil in a world full of 7 billion+ people who demand more oil We could convert to green energy Together You And I! Link to post Share on other sites More sharing options...
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