3 ms·
> That's because if the idea gets around that demand is going to peak, they won't be able to borrow the gigantic amounts of capital they need to keep drilling n
by sinxoveretothex 10y ago
> That's because if the idea gets around that demand is going to peak, they won't be able to borrow the gigantic amounts of capital they need to keep drilling new wells.
Alternative hypothesis: it's simple denial, much like Nokia and more recently RIM.
- mikeash 10y agoAlternative alternative hypothesis: they're correct, because the move towards renewable energy and electrified transportation is more than offset by increased oil consumption caused by economic growth in poor countries.
- woodandsteel 10y agoI don't understand that idea. From what I understand, most oil is used for transportation, so if EV's get cheaper than ICE, which it seems is going to happen in less than a decade, won't all the newly-prosperous developing world people buy EV's instead?
- mikeash 10y agoI'd be surprised if it happens that quickly for the low-end cars that newly-prosperous people in third-world countries would buy. Even if it does, insufficient electrical infrastructure might get in the way. In any case, I'm not saying it must happen this way, only that it's a possible basis for such a prediction that doesn't rely on oil companies being stupid or duplicitous.