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Does this not make the case for investing in renewables over shale extraction and fracking that has a price floor below which it's not economical?

scottLobster 7y ago
No more than the great recession made investing in the stock market a bad idea. This is a temporary and largely self-inflicted shock, demand will return and prices will go back up. As much as I like renewables, with the latest oil prices I've snapped up oil/natural gas producer stock at a hell of a discount for the last few weeks. For the record, I've also invested in renewable energy companies. Both ought to do well over the next 10 years IMO.
hirundo 7y ago
Generally an increase in oil prices is considered an argument for more renewable investment. You're saying that a decrease in price is too. Is there any oil price movement that doesn't argue for more renewables to you? How about no change, is that a case for more renewable investment?
- dd36 7y ago
  Renewables aren’t subject to huge price swings.
  - thebean11 7y ago
    Is that actually true? You'd think solar would swing dramatically between day and night..
    - deleted 7y ago
      [deleted]
    - manquer 7y ago
      Renewalable prices I am sure is what he meant . Sun is always shining somewhere , solar is very predictable and cyclical. Volatility is not caused by change but lack of predictability of changes . Oil production is controlled by few dictators with no transparency into their decision making . Most other markets including solar are far more distributed and rational
AnthonyMouse 7y ago
> Does this not make the case for investing in renewables over shale extraction and fracking that has a price floor below which it's not economical? Basically everything has a price floor below which it's not economical. The real risk to oil right now is that the combination of low demand and low prices make it unusually attractive for governments to implement a carbon tax, which would also provide funding for the sort of stimulus they're looking for right now, without having constituents upset over high gas prices. The "carbon tax + dividend" thing does exactly that. And would have a meaningful effect even if it was only done by e.g. US blue states and western Europe (which represent a disproportionate amount of world oil consumption). In which case the demand for oil would never recover.
duxup 7y ago
Oil being cheap probabbly makes investing in renewables less economical.
protomyth 7y ago
Different industries, different people. Saudi needs a higher price to pay for their country than frackers in ND and TX need to make a profit regardless of actual extraction cost. We were going to have a drop in price just because of the global slowdown. Frankly, we need to get to the next generation of nuclear because renewables will not be enough.
- at-fates-hands 7y ago
  > Frankly, we need to get to the next generation of nuclear because renewables will not be enough. How close are we to seeing this right now?
  - protomyth 7y ago
    Technically? I think we have multiple paths Politically? not a damn chance because ignorance is a thing.
  - rechristened 7y ago
    50 years

scottLobster 7y ago

No more than the great recession made investing in the stock market a bad idea. This is a temporary and largely self-inflicted shock, demand will return and prices will go back up. As much as I like renewables, with the latest oil prices I've snapped up oil/natural gas producer stock at a hell of a discount for the last few weeks. For the record, I've also invested in renewable energy companies. Both ought to do well over the next 10 years IMO.

hirundo 7y ago

Generally an increase in oil prices is considered an argument for more renewable investment. You're saying that a decrease in price is too. Is there any oil price movement that doesn't argue for more renewables to you? How about no change, is that a case for more renewable investment?

dd36 7y ago
Renewables aren’t subject to huge price swings.
- thebean11 7y ago
  Is that actually true? You'd think solar would swing dramatically between day and night..
  - deleted 7y ago
    [deleted]
  - manquer 7y ago
    Renewalable prices I am sure is what he meant . Sun is always shining somewhere , solar is very predictable and cyclical. Volatility is not caused by change but lack of predictability of changes . Oil production is controlled by few dictators with no transparency into their decision making . Most other markets including solar are far more distributed and rational

AnthonyMouse 7y ago

> Does this not make the case for investing in renewables over shale extraction and fracking that has a price floor below which it's not economical? Basically everything has a price floor below which it's not economical. The real risk to oil right now is that the combination of low demand and low prices make it unusually attractive for governments to implement a carbon tax, which would also provide funding for the sort of stimulus they're looking for right now, without having constituents upset over high gas prices. The "carbon tax + dividend" thing does exactly that. And would have a meaningful effect even if it was only done by e.g. US blue states and western Europe (which represent a disproportionate amount of world oil consumption). In which case the demand for oil would never recover.

duxup 7y ago

Oil being cheap probabbly makes investing in renewables less economical.

protomyth 7y ago

Different industries, different people. Saudi needs a higher price to pay for their country than frackers in ND and TX need to make a profit regardless of actual extraction cost. We were going to have a drop in price just because of the global slowdown. Frankly, we need to get to the next generation of nuclear because renewables will not be enough.

at-fates-hands 7y ago
> Frankly, we need to get to the next generation of nuclear because renewables will not be enough. How close are we to seeing this right now?
- protomyth 7y ago
  Technically? I think we have multiple paths Politically? not a damn chance because ignorance is a thing.
- rechristened 7y ago
  50 years