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The oil business does not get disrupted by 3 kids in an apartment with $20K. If you want to open an oil field or a refinery you need billions of dollars and a
by fleitz 13y ago
The oil business does not get disrupted by 3 kids in an apartment with $20K.
If you want to open an oil field or a refinery you need billions of dollars and a financial projection that says the oil will stay at $X dollars for at least Y years.
Since most people aren't convinced that oil will stay at $110 dollars for the foreseeable future they'd rather not risk billions of dollars.
If you can accurately predict oil prices stop reading hacker news and open a commodities account.
- jofer 13y agoYou misunderstood what I'm saying. It has nothing to do with economics or disruption. It has _absolutely everything_ to do with geology. The hydrocarbons that become economic at higher oil prices fundamentally cannot be produced as quickly as conventional reserves. It's a matter of permeability. Not a matter of economics. Also, I'd wager I'm far more aware than you think of the investments required to explore, develop, and produce a prospect. (I know nothing about refining, though.)