Saudi Arabia's oil minister told a crowd of U.S. oil executives in Texas on Tuesday exactly what they were afraid of hearing: that OPEC is more than happy to ride out cheap crude prices until higher-cost producers are pushed out of the market.
To be clear, the oil supply glut was not caused by Saudi Arabia, but by high prices that caused "every barrel on Earth" to be produced, according to Al-Naimi.
"Inefficient, uneconomic producers will have to get out, that is tough to say, but that's fact," said Al-Naimi after the speech, in an on-stage interview with author Daniel Yergin.
Al-Naimi said that he would prefer it if oil didn't continue to trade at the $20 level, but that he could live with it.
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Even amid low gasoline prices last year, electric car sales jumped 60 percent worldwide. If that level of growth continues, the crash-triggering benchmark of 2 million barrels of reduced demand could come as early as 2023. That's a crisis. The timing of new technologies is difficult to predict, but it may not be long before it becomes impossible to ignore.
Pretty much what I said a few pages back. Watch the adoption rate of EVs that's the canary for the oil industry.
Which says almost nothing about total world oil demand growth nor does it consider increased car demand within the Western world (2 cars per person instead of 1), but feel free to continue the self-aggrandizing posts. It really works wonders when you feel the need to act like a child all the time. "I was right and you were wrooong!".
Pretty much what I said a few pages back. Watch the adoption rate of EVs that's the canary for the oil industry.
Where do you think the sheer number of joules of energy will come from to power all that kinetic energy? Honest question because you obviously care about the subject. I love the idea of an electrical based transportation industry, but when I think about implementing it I always run smack into the first law of thermodynamics.
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Where do you think the sheer number of joules of energy will come from to power all that kinetic energy? Honest question because you obviously care about the subject. I love the idea of an electrical based transportation industry, but when I think about implementing it I always run smack into the first law of thermodynamics.
and in this house we respect the laws of thermodynamics
__________________
My name is Ozymandias, King of Kings;
Look on my Works, ye Mighty, and despair!
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Which says almost nothing about total world oil demand growth nor does it consider increased car demand within the Western world (2 cars per person instead of 1), but feel free to continue the self-aggrandizing posts. It really works wonders when you feel the need to act like a child all the time. "I was right and you were wrooong!".
Did you mean two cars per household instead of one? If it's two cars per person, I can't see how that would increase fuel consumption. You can still only drive one at a time.
US E&P companies owe $1T in bonds between now and 2022. Makes you wonder about contagion when a lot of these bonds gets pennies on the dollar back.
Yeah I would worry about holding a lot of "high yield" aka junk bonds at this point. Its a lot of energy, and financials have been hit fairly hard already because of the energy write-downs. That $1T is not a good number though.
Yeah I would worry about holding a lot of "high yield" aka junk bonds at this point. Its a lot of energy, and financials have been hit fairly hard already because of the energy write-downs. That $1T is not a good number though.
The scale on the graph of the article changed since I posted it and now it's only $200 billion.
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Where do you think the sheer number of joules of energy will come from to power all that kinetic energy? Honest question because you obviously care about the subject. I love the idea of an electrical based transportation industry, but when I think about implementing it I always run smack into the first law of thermodynamics.
Electrics and hybrids take advantage of this first law to recover energy normally converted to heat and not utilized for propulsion. Now explain to me how continuing to burn petrol addresses your concerns.
Electrics and hybrids take advantage of this first law to recover energy normally converted to heat and not utilized for propulsion. Now explain to me how continuing to burn petrol addresses your concerns.
Hey I have a great idea, lets use carbon based energy to mine Lithium to build 100k vehicles for the 1% that are "environmentally friendly" Electricity is free right?
Some people need to join the rest of us in reality. 91 million barrels of oil a DAY the world needs. We produce 92 million on a good day. Imagine a world that only produced 85 million barrels a day? How may people would die?
Some people need to join the rest of us in reality. 91 million barrels of oil a DAY the world needs. We produce 92 million on a good day. Imagine a world that only produced 85 million barrels a day? How may people would die?
But why imagine? Supply and demand wouldn't allow for it, there is tons of oil to prevent this from happening?
The argument here is that electric cars will hurt the demand for oil.
I dont disagree on any particular point but we have predominantly Socialist Governments in power both Provincially and Federally,
Sorry man, but this isn't even remotely true. The Liberals are a centre-left party but they still retain predominantly liberal economic principles. The AB NDPs are at best/worst social democrats but there's very little in theirs and federal branch's platforms that reflect true socialist ideology.
I'm not sure I ever saw this posted in this thread and it's not new news, (and sorry to switch gears from the political stuff in this oil thread) but this is going to be an interesting decision:
A decision has not been made in the case, but this is a very important one. Go one way, put a crapload of debt onto taxpayers. Go the other way, put at risk the capital markets on this shell game of oil and gas in Alberta, which is already in big trouble.
At any rate, this is a problem and will be interesting to see the resolution.
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And another topic I wanted to post about is the current natural gas storage in Alberta is very high, and for at least 1/2 the month of February, we've seen a net injection of gas in February. Typically the winter months withdraw storage and then the summer months fill storage for the winter draw-down. Sometimes summer can withdraw if weather is really hot in large population centres that end up using a ton of A/C, but this is a problem.
Natural gas prices are horrifically low already, and this could be catastrophic to industry prices. Has the province ever even seen 100% storage?
Electricity is free right?
