3 ms·
will energy consumption be less of an economic problem thanks to the break even of solar and coal?
by singularity2001 9y ago
will energy consumption be less of an economic problem thanks to the break even of solar and coal?
- nabla9 9y agoWorld as a whole is hungry for energy. Industrialized nations have been able to reduce the link between economic growth and energy consumption, but the same is not true for the rest of the world. Globally alternate energy adds to the global energy production, it's not replacing. When the industrialized world moves to alternate energies, developing world can afford to consume more oil, gas and coal. When solar becomes cheaper, it makes hydrocarbons cheaper due to decreasing demand. I don't see how solar power replaces the global hydrocarbon production significantly before it's too late. It certainly will not do so in the short or medium term. Markets value large oil and coal companies and producers like the demand will continue. EIA estimates that global petroleum and other liquid fuels consumption and production are in constant upward path: https://www.eia.gov/outlooks/steo/report/global_oil.php https://www.eia.gov/outlooks/steo/report/global_oil.php
- marcosdumay 9y agoFossil fuel production is highly competitive, so prices are pretty much set by the costs of the last marginal producer. If the world decreases its consumption, the prices may go down (possibly by a large amount). But any increase in consumption will very likely push the prices up, it does not matter it the competition between consumers is small.