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I've always wondered if Norway turning all its oil into dematerialized paper securities as fast as possible, is really a better long term investment strategy th
by vegabook 3y ago
I've always wondered if Norway turning all its oil into dematerialized paper securities as fast as possible, is really a better long term investment strategy than just leaving this tangible commodity right where it is, to be tapped when it becomes really scarce at some point decades from now.
- midasuni 3y agoIf we get to a point oil is rare then we’re screwed as we’ll have burnt too much of it
- n1b0m 3y agoWhat happens when the world moves on from oil and it’s no longer a valuable commodity.
- qwytw 3y ago> increasingly scarce Is it increasingly scarce? Proven know oil reserves have been stable since ~2012 and are now about 50% higher than they were back in 1990. Of course the extraction cost has been going up as well since shale is not economical below a certain market price.
- ricardo81 3y agoThe average amount of energy to extract new reserves has steadily increased. I think ATM it's around 1/8th of oil/energy extracted is needed to extract said oil. So even if it's not scarce, the factor of how economical it is to grab it is a factor. Sorry, no source, but I'd read it recently.
- psychphysic 3y agoIt's worth it because it gives Norway huge geopolitical power through their choice of investment. It also means when push comes to shove invade Norway they have all the oil isn't everyone's top priority.
- HPsquared 3y agoSomeone else could move in and take the oil by force. Not so with paper securities.