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While it is not necessary to have more than a cache because of domestic shale oil, forcing an average price would be good because the market is too volatile to
by angry_octet 7y ago
While it is not necessary to have more than a cache because of domestic shale oil, forcing an average price would be good because the market is too volatile to support large investment.
It is critical to understand that shale/tar sands oil is very expensive in terms of fugitive emissions, far more than traditional deep wells. An emissions tax is needed to capture this externalized cost. A more stable oil price and greenhouse emissions taxation would encourage better fracking engineering to reduce emissions, as well as reducing pointless consumption.
- valuearb 7y agoThat’s ridiculous, that volatile market has supported trillions in investment over the years. The market knows better than politicians and right now it’s keeping our massive supplies of oil in the ground until they are more valuable.
- angry_octet 7y agoThe value of bonds for shale oil companies supports my argument and refutes yours.
- valuearb 7y agoNo it proves my argument,e by e market works. No one should be investing in shale oil right now. And when we need shale oil, it will be there waiting.
- angry_octet 7y agoThey are going bankrupt. A boom bust cycle is not the most efficient way to operate, and lots of marginal value taps with poor engineering and amateur boom operators leads to massive fugitive emissions. Your investment timeline is myopic.
- valuearb 7y agoIt is literally the most efficient way to operate. Very quickly massive resources of investment and labor are redirected into areas that are much more valuable in a low energy cost world. Keeping zombie companies operating for no value is damaging to the economy.