5 ms·

> "There’s a fundamental policy aim, which is to burn and exploit all Saudi’s oil reserves until the last drop" If this is true, this sounds to me very shortsi

by ptdorf 3y ago

> "There’s a fundamental policy aim, which is to burn and exploit all Saudi’s oil reserves until the last drop" If this is true, this sounds to me very shortsighted. Our modern society will always require oil as the foundation for a thriving chemical industry. Digging and burning it all up means when its scarcity and price increases SA has nothing to sell. Norway does it better. This are blocked extraction in the touristic Lofoten islands. If they really need it then can decide otherwise, with less disruptive tech in the future.

nradov 3y ago
In theory with enough energy (like from nuclear power) it's possible to synthesize hydrocarbons to use as chemical feedstock. But regardless of policies around extraction and burning, Saudi Arabia will never literally run out of petroleum. It will just get progressively more expensive.
- RetroTechie 3y ago
  > But regardless of policies around extraction and burning, Saudi Arabia will never literally run out of petroleum. It will just get progressively more expensive. Not even that: higher prices work as incentive to develop alternatives. True for oil as energy source (renewables), fuel (synthetic fuels, H2 etc) and chemical feedstock (eg. bio-based polymers). Alternatives will then develop to the point that oil simply isn't attractive any more. Or that a price at which it would be (to buyers), is below the cost of extraction. Perhaps leaving some niche applications, but demand will drop overall. In short: it's a matter of time before production of (fossil) oil becomes unprofitable outside those niche applications. Heck, if environmental damage were included in the cost, it already is (ehm.. has been for a long time). So there will be a "peak oil profits". Probably around the same time as peak oil - which may already have passed.

5 ms·

> "There’s a fundamental policy aim, which is to burn and exploit all Saudi’s oil reserves until the last drop" If this is true, this sounds to me very shortsi

by ptdorf 3y ago

nradov 3y ago
In theory with enough energy (like from nuclear power) it's possible to synthesize hydrocarbons to use as chemical feedstock. But regardless of policies around extraction and burning, Saudi Arabia will never literally run out of petroleum. It will just get progressively more expensive.
- RetroTechie 3y ago
  > But regardless of policies around extraction and burning, Saudi Arabia will never literally run out of petroleum. It will just get progressively more expensive. Not even that: higher prices work as incentive to develop alternatives. True for oil as energy source (renewables), fuel (synthetic fuels, H2 etc) and chemical feedstock (eg. bio-based polymers). Alternatives will then develop to the point that oil simply isn't attractive any more. Or that a price at which it would be (to buyers), is below the cost of extraction. Perhaps leaving some niche applications, but demand will drop overall. In short: it's a matter of time before production of (fossil) oil becomes unprofitable outside those niche applications. Heck, if environmental damage were included in the cost, it already is (ehm.. has been for a long time). So there will be a "peak oil profits". Probably around the same time as peak oil - which may already have passed.