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What this means is China can flatten the demand much faster as they have a way to create synthetic oil. They may continue to buy oil as long as prices are reaso
by thelastgallon 2mo ago
What this means is China can flatten the demand much faster as they have a way to create synthetic oil. They may continue to buy oil as long as prices are reasonable.
This reminds me of The Prize: The Epic Quest for Oil, Money, and Power
Book by Daniel Yergin. Germany created synthetic oil but it was too expensive, resource-intensive, they couldn't make enough of it economically at the scale they needed. They had no choice but to go to war for fossil fuels which they don't have access to.
I wonder how the unit economics are working out for China.
- leonidasrup 2mo agoI don't think that Germany had no choice, because Germany scaled synthetic oil production a lot during WWII: "Being petroleum-poor but coal-rich, Germany used the process during World War II to produce ersatz (replacement) fuels. FT production accounted for an estimated 9% of German war production of fuels and 25% of the automobile fuel." https://en.wikipedia.org/wiki/Fischer%E2%80%93Tropsch_process#History https://en.wikipedia.org/wiki/Fischer%E2%80%93Tropsch_proces...