When oil is no longer in demand
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When oil is no longer in demand
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Re: When oil is no longer in demand
#2neopeak oil
Re: When oil is no longer in demand
#3Total World Consumption (2017 projection) : 96.92 million barrels per day (up from 92.58 million barrels in 2014)
EIA outlook: http://www.eia.gov/outlooks/ieo/world.cfm
Oil will be in demand for a long time. The demand might peak but headlines like this seem to indicate oil isn't needed anymore.
Most people do not realize that 6-7 million barrels of oil per day must be found year over year to replenish the depletion of old oil wells. This requirement will drive exploration and investment.
Re: When oil is no longer in demand
#4I live in Utah and I can tell you exactly what happens when oil is no longer in demand. They offer numerous tax breaks per well to encourage exploration and increase production. I believe the term is "corporate welfare". One of the tax breaks has a stated goal of providing tax relief when oil prices are low. https://oilgas.ogm.utah.gov/pub/Publications/Lists/tax_incen...
This is the same government attempting to roll back solar tax credits because they insist that the solar industry needs to stand on it's own 2 feet and compete in the "free" market.
Re: When oil is no longer in demand
#5I wonder what will happen to the price of jet fuel once electric cars are wide spread. Petroleum production will go down as demand for gasoline will go down while jet fuel demand will probably remain similar. So will that lead to a rise in jet fuel price?
Re: When oil is no longer in demand
#6Total World Consumption (2017 projection) : 96.92 million barrels per day (up from 92.58 million barrels in 2014) EIA outlook: http://www.eia.gov/outlooks/ieo/world.cfm Oil will be in demand for a long time. The demand might peak but headlines like this seem to indicate oil isn't needed anymore. Most people do not realize that 6-7 million barrels of oil per day must be found year over year to replenish the depletion…
Yeah, it's crazy that people think oil is going away. We're 7 billion people on our way to 9 billion, with another billion in the next 15 years. That fossil free future that we dream about isn't getting any closer. Those big solar plants, etc that we read about are a rounding error.
Re: When oil is no longer in demand
#7I wonder what will happen to the price of jet fuel once electric cars are wide spread. Petroleum production will go down as demand for gasoline will go down while jet fuel demand will probably remain similar. So will that lead to a rise in jet fuel price?
Or would it potentially increase the supply of Jet A (jet fuel), as less oil needs to be converted to automobile fuel.
Re: When oil is no longer in demand
#8I wonder what will happen to the price of jet fuel once electric cars are wide spread. Petroleum production will go down as demand for gasoline will go down while jet fuel demand will probably remain similar. So will that lead to a rise in jet fuel price?
Doubtful. Under basic economic theory, as demand goes down, so does price. The petroleum production that shuts down first will tend to be the most expensive production, causing a drop in the average cost, and price (we should see a similar effect in upstream products like crude).
The main way this effect breaks down is if the market shrinks so much that we loose the economy of scale; but it seams unlikely demand will fall far enough for that to occur.
Re: When oil is no longer in demand
#9Total World Consumption (2017 projection) : 96.92 million barrels per day (up from 92.58 million barrels in 2014) EIA outlook: http://www.eia.gov/outlooks/ieo/world.cfm Oil will be in demand for a long time. The demand might peak but headlines like this seem to indicate oil isn't needed anymore. Most people do not realize that 6-7 million barrels of oil per day must be found year over year to replenish the depletion…
Yeah, it's crazy that people think oil is going away. We're 7 billion people on our way to 9 billion, with another billion in the next 15 years. That fossil free future that we dream about isn't getting any closer. Those big solar plants, etc that we read about are a rounding error.
You're right. The price going down has, I think, more to do with the effect of fracking in the US. It's getting to the point that the US could be an exporter if it changed its laws.
The effect of petro-states will be much the same, though.
Re: When oil is no longer in demand
#10Total World Consumption (2017 projection) : 96.92 million barrels per day (up from 92.58 million barrels in 2014) EIA outlook: http://www.eia.gov/outlooks/ieo/world.cfm Oil will be in demand for a long time. The demand might peak but headlines like this seem to indicate oil isn't needed anymore. Most people do not realize that 6-7 million barrels of oil per day must be found year over year to replenish the depletion…
Yeah, it's crazy that people think oil is going away. We're 7 billion people on our way to 9 billion, with another billion in the next 15 years. That fossil free future that we dream about isn't getting any closer. Those big solar plants, etc that we read about are a rounding error.
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