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Another consideration is that when things get back to normal there will be a lot of people that won't go back to commuting as much, less long term energy usage.
by badrabbit 7y ago
Another consideration is that when things get back to normal there will be a lot of people that won't go back to commuting as much, less long term energy usage. If the SA vs RU fight doesn't end soon, this will not benefit renewables, but if it does it will be a golden opportunity since oil will cost more and be used less.
- kijin 7y agoIf oil is used less, it will cost less. Supply and demand. But at least low oil prices will help stall the development of shale gas and oil sands in North America.
- objektif 7y agoOil is a totally different beast. Simple supply demand economics doesnt work due to geopolitical games that OPEC+ plays.
- tonyedgecombe 7y agoOPEC hasn't been effective at controlling prices for some time now.
- objektif 7y agoOh yeah? Have you been watching any news in the last two weeks?
- deleted 7y ago[deleted]
- mercutio2 7y agoEvery supplier in a marketplace has the ability to lower marginal prices in a price war. Only effective cartels can raise prices at will. And OPEC’s power to do this is pretty clearly diminished, if not destroyed, by expanded US and Russian capacity.
- hermitdev 7y ago> If oil is used less, it will cost less. Supply and demand. Indeed. I was able to put a bit over 15 gallons of premium in my car tonight for ~$45. I was shocked, pleasantly so. I had gotten used to paying nearly $70 to fill my 18 gallon tank. Yeah, I don't drive the most fuel efficient car, but I've also only put on a little of 50k miles over the 8 years I've owned it. That's 6250 miles per year. Far less than most (US) Americans with a car.
- badrabbit 7y agoNot really, it will cost whatever opec and pals say it will cost. In my opinion,less has to be magnitudes lesser (>10%?) for it to affect prices at the upstream end of things.
- kryptiskt 7y agoAt some point lack of demand will affect the supply.