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Consider the opposite, if every person produced oil at the rate of a Norwegian, then global oil production would be 50x higher than today. In that world we'd be
by georgeg23 3y ago
Consider the opposite, if every person produced oil at the rate of a Norwegian, then global oil production would be 50x higher than today. In that world we'd be lighting barrels of oil on fire for fun.
- JumpCrisscross 3y ago> if every person produced oil at the rate of a Norwegian, than global oil production would be 50x higher than today But if every person travelled like a Norwegian, oil demand would be down. Extrapolating per capita mechanics of a small country like this doesn't make sense.
- TheCoelacanth 3y agoNot true. Oil demand would almost triple. An average Norwegian uses nearly 600 gallons per year while the world average is around 200.
- krona 3y agoThe price of oil turned substantially negative in 2020 due to ~50% overproduction, so no, that's not what would happen.
- rcme 3y agoThe price of oil was negative because no one had any place to store the oil and they absolutely needed to take delivery of it. It’s a very different issue.
- krona 3y agoIn other words, there was an oversupply and futures contracts couldn't be fulfilled. Partly due to Saudi and Russia having a disagreement over production cuts in response to the massive demand shock.
- rcme 3y agoNo it was a demand shock that caused demand to plummet meaning storage facilities were still full as futures created before the demand shift expired. Basically people bought futures expecting to have capacity to take delivery but then realized they wouldn’t.