4 ms·
Oil is "mined" very efficiently, and I bet most of the production each year is used pretty quickly.
by Grustaf 6y ago
Oil is "mined" very efficiently, and I bet most of the production each year is used pretty quickly.
- pvarangot 6y agoOil is mined super inefficiently except for shallow wells, it has tight margins. Some operations, specially fracking, actually shut down pretty often when the barrel price goes down near 60 which is were we are now. If you look at production vs. consumption in the world there's usually a bit more consumption than production. If you look per country on the US there's more production than consumption. That's because "extraction" is heavily played with to speculate with the price.