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Ostensibly not all known oil fields are actively being extracted. This fact alone makes it unlikely that discovering a new source would affect the price of oil,
by twodave 10mo ago
Ostensibly not all known oil fields are actively being extracted. This fact alone makes it unlikely that discovering a new source would affect the price of oil, unless it can be retrieved using cheaper than the existing methods. It’s also worth pointing out that “oil” as a resource isn’t this homogenous substance. Basically every different source of oil has a different (and expensive) refinement process on the other end. It’s a lot more variables than the Reddit-style armchair oil tycoon would probably expect.
- DANmode 10mo agoNobody was talking about changing the price of oil, though. Just someone getting paid market rate for the additional barrels.
- twodave 10mo agoFair enough, though production does impact price to a degree. For oil this is less important than some other commodities, but it’s still a factor. But this is really a tangent from the central argument that is: oil exploration isn’t so important if we already aren’t producing from many existing known sources, and exploration itself is only sort of loosely tied to selling the end-product in terms of sales.
- mothballed 10mo agoI'm sorry, Reddit-style armchair oil tycoon? I've been using the word "oil" commodity the same way as everyone else has, why did you pick out my comment for that aspersion? Why not upthread when people were discussing 0 incentives? You are applying this aspersion and standard asymmetrically.
- twodave 10mo agoAm I? I think I used it in 100% of my comments before this one… it was not meant as an offense, but more as an acknowledgement that almost nobody here (including myself; I’ll happily take the moniker if you won’t) has the appropriate knowledge to argue this topic.