Quote:
Originally Posted by Street Pharmacist
Those in the O&G field would probably know better, but I wonder what happens to these plans once the inevitable oversupply happens. If the best cure for for high energy prices is high energy prices, then surely a supply glut of in the forecast. Europe made strong climate goals when energy costs were low, and are now looking at even stronger goals when process go higher. Could that change if prices go low again?
|
Institutional and major fund investors are really starting to demand ESG plans that include emission reduction plans, fossil fuel development has fewer dollars chasing it.
Frankly, I think commodity price volatility is more a sign of the struggle producers are having to maintain high enough costs to keep producing. We’d need solid $120/bbl and/or much higher carbon prices to keep the marginal barrel producing with carbon capture. There is a reason more investment is funnelling into producing “blue hydrogen” than unconventional plays or war spoil barrels (the marginal barrel).
You’re seeing that people can’t afford higher energy costs. When they can’t pay the Piper, the Piper stops playing.
We are in serious trouble and risk severe contractions if people don’t get their head out of their ass about fission.