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Saudi Arabia extracts oil at $7-$15/barrel. The price should go up over time, but constant innovation in exploration and extraction drives it down also. Their r

Saudi Arabia extracts oil at $7-$15/barrel. The price should go up over time, but constant innovation in exploration and extraction drives it down also. Their reserves haven't gone down for 20 years because they are constantly exploring more fields. Currently their economy can probably remain stable until as low as $70/barrel for long periods of time although growth would be difficult. If their diversification efforts succeed in the next decade they will be less reliant and will be able to sustain much lower prices. Every last drop in the Persian Gulf is economical for the foreseeable future. Fuel is the least profitable and they are already switching to petrochemicals. Oil is not going away this century.

woodandsteel 7y ago
>Oil is not going away this century. No, it is going to go away. That is because most governments are scared to death of global climate change and are passing laws to do away with fossil fuel consumption. It's not happening all at once, but basically as fast as the technology comes into place to replace fossil fuels.
- seventhtiger 7y ago
  Even if we stop fossil fuels tomorrow oil is here to stay. How long would it take to develop new aircraft? How long would it take to stop all industries from using plastic, and all agriculture from using petrochemical fertilizer? Not all governments are in on some grand conspiracy. Many governments would greatly benefit. But to make the switch now would mean severe damage to their economy and wellbeing. Even medicine relies heavily on petrochemicals inside and outside of the hospital. Even if a country chooses to sacrifice itself to benefit the common good, it might not be enough to affect actual environmental change.