4 ms·
That is only one side of the equation. Due to rapid technological advances in shale oil extraction (ie fracking), North American companies have radically chang
by cubano 11y ago
That is only one side of the equation.
Due to rapid technological advances in shale oil extraction (ie fracking), North American companies have radically changed the daily global supply of oil, which of course puts downward price pressure on it.
Much of the recent price drop can be defined in terms of Saudi's getting into a price war with these NA companies, trying to push them off the market.
Not only that, but this technology is a long-term game changer, ie it will be only a matter of time before all the world oil players (Russia, Venezuela, etc) co-opt this tech and start extracting much cheaper oil from their fields, which of course the markets are anticipating as well.
- api 11y agoHmm... and combine with EVs coming of age, a Moore's Law type growth curve for solar (and solar EROEI), etc., and perhaps the high energy costs of the recent past are gone for a while. I have to admit I'm surprised. I totally bought the idea that oil would never be this cheap again for fundamental physical reasons. But perhaps that made it a bubble. A true bubble must have a "story" about how it's "different this time" that manages to convince huge numbers of people.