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> for all the heinous crap they have done, antiticpated this demand spike was temporary better than any politican has. It's not that they necessarily anticipat
by mgfist 4y ago
> for all the heinous crap they have done, antiticpated this demand spike was temporary better than any politican has.
It's not that they necessarily anticipated the spike and subsequent fall; it's more to do with investor dynamics. Oil is a traditionally huge boom and bust field and is incredibly capital intensive. After the bust in the mid 2010s, coupled with huge investor outflows due to ESG reasons, the message that oil companies got from investors was to minimize capital spending (because they had little) and focus on profitability. So when this cycle came around, few were looking to do commit the capital to lift supply up. And now that demand is swinging back down, I suspect the bust cycle will look less dramatic then it has in the past.
- jmyeet 4y ago> And now that demand is swinging back down, I suspect the bust cycle will look less dramatic then it has in the past. I've seen people who seem to know a lot about this industry make this point. We probably won't see $1.50-2/g prices but next year we'll probably see ~$2.50/g and that's probably a good thing, better than a more extreme boom and bust cycle.