5 ms·

Doesn't seem so crazy. If your industry isn't viable any more: liquidate rather than hang around. We all know what Alphabet (Google) would do if it owned som

• rubyfan 11y ago
  That the business is in decline is the bone of contention here. The author doesn't present evidence that the market for oil is in decline. He suggests as much referring to projections of long term low oil prices but ignores realities. Low prices can be fixed on the supply side as well as demand. I don't believe there is compelling evidence to suggest clean energy is making substantive inroads against oil. Short term analysis seems to suggest oil consumption will increase[1]. Past actuals suggest renewable energy as a percent of total energy had declined over the last 50 years[2]. At the moment OPEC are essentially overproducing and are telegraphing that they will cut supply in the future[3] as they expect prices to rise. This is a vote of confidence for higher prices and economic growth in the future which is hardly a reason to start selling off reserves now. [1] http://www.eia.gov/forecasts/steo/report/global_oil.cfm http://www.eia.gov/forecasts/steo/report/global_oil.cfm [2] https://en.m.wikipedia.org/wiki/Renewable_energy_in_the_United_States https://en.m.wikipedia.org/wiki/Renewable_energy_in_the_Unit... [3] http://www.wsj.com/articles/opec-report-suggests-oil-price-rebound-supply-cut-1450864802 http://www.wsj.com/articles/opec-report-suggests-oil-price-r...
• Spooky23 11y ago
  Oil isn't in decline. There may be some alternatives to oil that are newly viable, but you still have billions of engines that aren't going anywhere.