Earlier quoted context omitted.
Renewables aren’t subject to huge price swings.
Is that actually true? You'd think solar would swing dramatically between day and night..
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Oil plunges below zero for first time with May contract ending
181–190 of 546 posts
Re: Oil plunges below zero for first time with May contract ending
#182I'm a software developer, which translates to being somehow smart, but I'm not that into economics: Will this have a rubber band effect? E.g., the price will skyrocket in the next 2 - 5 years, because of this?
> I'm a software developer, which translates to being somehow smart
This is a doozy of a way to start a comment.
Re: Oil plunges below zero for first time with May contract ending
#183Usually by the time you see commodities activity hitting the front page of HN the bets are in and the market is about to take a wild swing in the other direction. It is very easy to side with the news on oil right now that there is a historical over supply (so much so we have no place to store it any longer, and even considering paying producers to leave it in the ground) and we have a historical drop in demand...so…
I've seen many talking about getting into oil producers and ETFs well above this price.
Guess it depends where you dwell online.
Re: Oil plunges below zero for first time with May contract ending
#184Time to make more tar and repave the roads.
Re: Oil plunges below zero for first time with May contract ending
#185I understand that it's hard to stop oil production, leading to pileups. But even after 2 months it's still unstoppable?
I talked with a friend the other day that works for a big Canadian producer. SAGD (which is popular in Alberta) can't just be turned off since the heating of steam takes months to ramp up.
Re: Oil plunges below zero for first time with May contract ending
#186Earlier quoted context omitted.
This is obviously wrong. You cannot dump oil, and anyone found to be dumping will be prosecuted. READ THE EPA STATEMENT.. https://www.epa.gov/sites/production/files/2020-03/documents... > The enforcement discretion described in this temporary policy do not apply to any criminal violations or conditions of probation in criminal sentences. ... > This policy does not apply to imports. They are relaxing REPORTING require…
This is obviously wrong. The EPA has explicitly stated they will not be enforcing regulation. Source: https://thehill.com/policy/energy-environment/489753-epa-sus...
READ THE EPA STATEMENT..
https://www.epa.gov/sites/production/files/2020-03/documents...
> The enforcement discretion described in this temporary policy do not apply to any criminal violations or conditions of probation in criminal sentences.
...
> This policy does not apply to imports.
They are relaxing REPORTING requirements - not giving a free pass to anyone dumping whatever they want. Obviously.
Re: Oil plunges below zero for first time with May contract ending
#187someone can explain me why they just don't stop pumping?
Re: Oil plunges below zero for first time with May contract ending
#188If the pandemic lasts longer than 6 months, which is quite likely, many high-cost oil producers might not survive. Some would argue this could lead to shortage and a much higher price later on, but long-term oil demand could also be affected. There might be some semi-permanent change in people's behaviors if the epidemic continues for many months. Many people will form a habit of doing more things at home/online: mor…
> If the pandemic lasts longer than 6 months, which is quite likely, many high-cost oil producers might not survive. Some would argue this could lead to shortage and a much higher price later on, but long-term oil demand could also be affected. Even if they all declared bankruptcy, their infrastructure would still be there. I'd imagine someone would buy it and bring it back online if/when prices recover.
I agree. It depends on long-term demand change, if any. New investors might be quite reluctant for a while regardless.
Re: Oil plunges below zero for first time with May contract ending
#189Earlier quoted context omitted.
The producers aren't gonna dump it (at least not in the US) because that is a surefire way to not only have the EPA bend them over but to have the EPA bend them over with the blessing of public opinion. Nobody wants to have their company be associated with pictures of oil soaked wildlife.
EPA isn’t enforcing right now.
What if Trump loses?
Re: Oil plunges below zero for first time with May contract ending
#190Earlier quoted context omitted.
Renewables aren’t subject to huge price swings.
Is that actually true? You'd think solar would swing dramatically between day and night..
Renewalable prices I am sure is what he meant .
Sun is always shining somewhere , solar is very predictable and cyclical.
Volatility is not caused by change but lack of predictability of changes . Oil production is controlled by few dictators with no transparency into their decision making . Most other markets including solar are far more distributed and rational