3 ms·
Right, but lower trending demand would also put more power into the hands of OPEC to crater prices and prop up demand any time alternatives start to threaten oi
by kube-system 3y ago
Right, but lower trending demand would also put more power into the hands of OPEC to crater prices and prop up demand any time alternatives start to threaten oil's dominance. They're not going to go out without a fight to the end because those economies depend on oil. I'm sure it will go on long after I'm gone from this world.
- bluGill 3y agoWill they though? A large consumer of oil is cars and EVs are coming fast. Even if we assume that 5% of cars will always be fuel burning ICE for "reasons" that is such large demand destruction that in 10 years I don't think OPEC will have any power - in fact I wouldn't be surprised if most of the world just embargo all OPEC countries: they are mostly middle east areas where there is a lot of conflict and the few non-OPEC oil producers can supply the world's needs, so cutting them off from all money is a good thing for the world.
- kube-system 3y ago> Even if we assume that 5% of cars will always be fuel burning ICE By the time it gets that low, I agree, they're done. We're a very long way from that. 85% of cars being sold globally are still ICE, and the population of vehicles on the road lags sales figures by a couple of decades. And even with the increase in EV sales figures, oil demand is not dropping, because the total demand for cars is increasing. But if demand for oil starts to drop due to EV adoption, OPEC is for sure going to make sure it's cheap as hell to operate an oil burning car, and people in the majority of the world where it's still legal will have a huge incentive to keep buying them.