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The demand will rise again once this virus is done with.
by aantix 7y ago
The demand will rise again once this virus is done with.
- avvt4avaw 7y agoRemember that the initial fall in oil price was a supply shock (Saudi Arabia upping production) that was only exacerbated by lack of demand. If demand comes back it won’t push oil back into the 50s/60s.
- chii 7y agoBut what's the saudis' end game? Are they really gonna try to starve out russia, and cause them to capitulate? Game of chicken till one country bankrupts? The saudis are losing money doing this (they have to eat into their reserves to fund the country). Russia at least has other industries, however small it may be.
- lstodd 7y agoRussia has just lost about 20-30% yearly income in these first months just from the oil price war. Saudis cannot care less because they have about three times of Russia reserves nominally. In fact I suspect about five to seven times that, because Russia reserve structure is basically unknown. Saudis can certainly afford a year or three of having no income. This is on top of the virus panic (which just cut any remaining tax revenues). Russia, Venezuela, Iran for that matter are done for. EDIT: Which is why I think the whole OPEC+ deal went to the crapper. Middle East is able to weather this, others - not so much.
- chasd00 7y agoI hope this doesn't mean war. I have a feeling Russia will take out capacity by force if it becomes an existential threat.
- lstodd 7y agoNo it does not. There is no one in Russia able to execute such a decision. There were some people in 2008 maybe, but that was almost 12 years ago. Arguably there isn't anyone like this in the rest of the world either, but I digress.
- empath75 7y agoWouldn’t it be nice if it didn’t, though. Large numbers of people working from home, cruise and airlines running fewer routes, people staying local instead of traveling so much, more local farming and manufacturing so less money spent on shipping....
- MadSudaca 7y agoIt wouldn't be too nice if you lose your job in the process.
- jniedrauer 7y agoUnless "jobs" stopped being an end goal. Then it would still be nice.
- sheeshkebab 7y agoWould be nice.... hordes of people on roads in metro areas driving their 3ton chunks of metal, one person per chunk is just obnoxious unbelievable waste, and all to mostly sit and write emails and chitchat a bit at “work”.
- deleted 7y ago[deleted]
- fulafel 7y agoNot just nice, but necessary, to avoid megadeaths from unchecked global warming.
- buboard 7y agoi hope it doesnt go back to the same levels. So many people are learning to work remotely, i hope they stick to it. i dont know what that means for overall energy usage but it seems it will be cleaner
- crimsonalucard 7y agoIt will go back to the same level. Nobody likes the situation right now and once the threat of death and disease disappears people will begin to behave as they once did. Our entire culture and urban physical infrastructure is built around a certain level of oil consumption. The current situation is temporary, the real solution is to replace the source of energy of fossil fuels. We are projected to have green energy be 30% of all energy consumption by 2024 with much of this effort lead by China. The extreme central control and lack of freedoms that the western world hates so much is exactly what makes China so effective at protecting themselves against COVID-19 and saving the world from an energy crisis. We value freedom but the cost is too high.