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Everyone is now rushing to sell oil, before demand for it will start falling rapidly.

• AnthonyMouse 8y ago
  > Everyone is now rushing to sell oil, before demand for it will start falling rapidly. This also gives countries a great opportunity to raise fuel/carbon taxes without suffering high oil prices -- which would keep demand lower, resulting in even lower pre-tax prices and a very helpful feedback loop.
• jillesvangurp 8y ago
  The Texas oil bubble is fueled by massive debt and very rosy long term exploitation projections. Too rosy maybe according to some; there's been some rumors a lot of oil companies in Texas have been overstating their long term supplies. Either way, low oil prices are a good thing since it cuts off more the expensive sources as a realistically viable. It's actually helping to kill off oil investments because why bother if the prices stay below what is actually profitable. A lot of recent investments only made sense at 70$+ a barrel. Now that 30$ is on the table, those investments are effectively under water. The price volatility alone should scare investors. Imagine it drops another 10$ because Opec throws in the towel and unleashes the floodgates? Meanwhile, oil dependence is being addressed by ongoing electrification so lower demand is going to keep prices low even as supply declines. This ensures that by the time the shit hits the fan (cheap supplies run out), it won't be as much of an issue. In 20 years when most transport is electric, the barrel price for oil will be much less relevant for most. There will still be a need for oil of course but not at the levels needed today.