The whole point of shale is that you can get it going again quickly and piecemeal based on the price of oil. It puts a large plateau/floor on oil at $~60 per barrel which is geopolitically very useful.
Depends, breaking below $60 per barrel does lead to significant layoffs and it's difficult to rebuild that know-how because knowledge isn't 100% elastic.
The oil glut itself is largely because of the KSA and Russia in the midst of a mutual price war as well as the US expanding it's own production.
That said, it's still an open question of whether a glut will exist or not - at this point it's China, India, and Japan that's become the primary driver for oil prices because they are getting similar deals from both KSA and Russia, and are trying to pressure other suppliers to give similar deals.
1. A significant portion of that infrastructure is in the Russian Far East - especially those that are furnishing the Asian market
2. Japanese, Chinese, Indian, and South Korean companies and SOEs all have significant stakes and investments in Russia's ONG infrastructure, such as Sakhalin-I (Japan's Mitsui Group and India's ONGC), Sakhalin-II (Korea's KOGAS and Japan's Tohoku Electric), and Power of Siberia (China's CNPC), so any attack on Japanese, Chinese, Indian, or Korean ONG infrastructure in Russia is viewed as a red line by these countries.
3. Saudi Arabia remains a competitor against Shale, and would continue it's price war against American Shale.
See it seems exceptionally short-sighted to me to continue the race to pull as much carbon out of the atmosphere as possible and put it in the air, but what do I know?
It hasn’t kept up with inflation and the price of hard metal commodities so it’s more like the price keeps going down:
https://www.macrotrends.net/1369/crude-oil-price-history-cha...
https://www.macrotrends.net/1380/gold-to-oil-ratio-historica...
Given the sharp rise in production since 2010, it seems the flat price has more to do with increasing supply and less to do with waning demand:
https://www.eia.gov/dnav/pet/hist/leafhandler.ashx?n=pet&s=m...
https://ourworldindata.org/grapher/oil-production-by-country
The whole point of shale is that you can get it going again quickly and piecemeal based on the price of oil. It puts a large plateau/floor on oil at $~60 per barrel which is geopolitically very useful.
Depends, breaking below $60 per barrel does lead to significant layoffs and it's difficult to rebuild that know-how because knowledge isn't 100% elastic.
The oil glut itself is largely because of the KSA and Russia in the midst of a mutual price war as well as the US expanding it's own production.
That said, it's still an open question of whether a glut will exist or not - at this point it's China, India, and Japan that's become the primary driver for oil prices because they are getting similar deals from both KSA and Russia, and are trying to pressure other suppliers to give similar deals.
Easy solution, bomb more Russian oil infrastructure.
Sure, but we should do that anyway regardless of oil prices.
1. A significant portion of that infrastructure is in the Russian Far East - especially those that are furnishing the Asian market
2. Japanese, Chinese, Indian, and South Korean companies and SOEs all have significant stakes and investments in Russia's ONG infrastructure, such as Sakhalin-I (Japan's Mitsui Group and India's ONGC), Sakhalin-II (Korea's KOGAS and Japan's Tohoku Electric), and Power of Siberia (China's CNPC), so any attack on Japanese, Chinese, Indian, or Korean ONG infrastructure in Russia is viewed as a red line by these countries.
3. Saudi Arabia remains a competitor against Shale, and would continue it's price war against American Shale.
oh no!
Won't someone think of the shareholders ;_;
If you are American, it is _exceptionally_ short sighted to think that energy production in your country is not a good thing to have.
See it seems exceptionally short-sighted to me to continue the race to pull as much carbon out of the atmosphere as possible and put it in the air, but what do I know?
High oil prices means alternatives are more economical and the transition can happen sooner. Low prices keeps us using oil for longer
Low prices destroy oil exploration investment, making it harder to establish future extraction as China pumps clean tech exports to the world.
https://ember-energy.org/data/china-cleantech-exports-data-e...
(half a million barrels a day of global oil demand is destroyed every year EVs are produced at the current rate China produces them at)
And how is China generating the energy needed for that production?
I'm bullish on nuclear power myself.
https://ember-energy.org/latest-insights/china-energy-transi...
China is installing ~275GW of solar per year.
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