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Their best defense to a large scale move away from fossil fuels is to simply keep production high and prices relatively low. OPEC should be very careful about
by bequanna 3y ago
Their best defense to a large scale move away from fossil fuels is to simply keep production high and prices relatively low.
OPEC should be very careful about exercising their power too aggressively as alternatives are now very competitive even without government subsidies. Consumers have a host of attractive EV options now.
Of course, it is inevitable that we will shift away from fossil fuels but the question is how quickly. It will be interesting to see how these petro nations respond to their ever weakening positions as their power and relevance slowly but steadily reduces to nothing.
- The_Colonel 3y agoSaudi Arabia / OPEC is actively working to keep the prices high. I think that's a clear indication they believe we've reached the point of no return and stopping the energy revolution is no longer possible. Lowering the prices might slow it down a bit, but all-in-all it would not bring long term higher profits.
- tonyedgecombe 3y agoNot only that but they can't afford it. They need the price to be near $100/barrel to avoid a budget deficit.
- mrangle 3y agoIts up for debate as to how attractive EVs are to consumers.