3 ms·

Is this sarcasm? Few months before green energy turns the ship around? Oil/gas is the backbone of most economy, dare say we will remain dependent.

• epistasis 4y ago
  I think the poster is saying he expects the stock market to fall a few more months before turning around. Not that green energy will complete its transition in a few months. If you think oil/gas will demand the backbone, you ask yourself why none of the oil and gas majors are drastically expanding their production capacity during this time of high prices. Oil and gas, and their investors, are planning for their phase out, and nobody wants to be holding on to a new asset that has a lifetime of 10-20 years but won't have value after five. Oil and gas companies and investors know that fossil fuels are on the way out, it surprised me that the general public doesn't know this.
  • peteradio 4y ago
    > why none of the oil and gas majors are drastically expanding their production capacity during this time of high prices Because its a short-lived blip? Didn't we just have record lows less than 2-years ago?
    • epistasis 4y ago
      When there's an influx of cash like now, it's usually an ideal time to invest that money in new production because you have the cash in hand. General consensus is that new development should be small and only in a few types of projects, due to the transition under way. For example see this BCG report (PDF): https://web-assets.bcg.com/5e/73/dcd6e1544ba2a964e6c082d684e8/bcg-oil-and-gas-investment-in-the-new-risk-environment-dec-2020.pdf https://web-assets.bcg.com/5e/73/dcd6e1544ba2a964e6c082d684e...