Oil Needs to Fall Below $20 to Compete With Green Alternatives
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Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#2Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#3Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
OPEC are much less powerful than the decades of past - thankfully - but it'll be a while before oil will be _truly_ priced by supply and demand and nothing else.
Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#4Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
Oil will be priced according to supply and demand.
Supply, demand, and subsidies.
Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#5Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
OPEC are much less powerful than the decades of past - thankfully - but it'll be a while before oil will be _truly_ priced by supply and demand and nothing else.
Their back was broken when they tried to kill shale oil in 2016 and failed.
Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#6Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
Oil will be priced according to supply and demand. Supply, demand, and subsidies.
> Supply, demand, and subsidies.
Supply, demand, subsidies and political stability of the country that produces it.
In short: oil prices are affected by many factors.
Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#7Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
Not quite. Oil and its derivatives are also subject to heavy subsidies and taxation. These "corrections" are supposed to take into account external costs and benefits that wouldn't be otherwise in the price but, unfortunately, it is also susceptible to corruption. In the case of oil the external costs are so large that taxation can completely take its competitive edge.
Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#8Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
The moment renewables are cheaper than oil extraction they have won. The issue is just that oil extraction costs, while exant, are quite low for some types of oil. As a long term trend though I guess we'll see energy become cheaper and cheaper in a competitive race, driven by the wish for the market to adopt renewables. So hopefully we'll soon live in a world where energy is cheap and green :).
Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#9Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
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Re: Oil Needs to Fall Below $20 to Compete With Green Alternatives
#10Oil will be priced according to supply and demand. There may still be use cases which require oil. And however cheap the competition can produce oil it will be priced. This is non-news.
Not quite. Oil and its derivatives are also subject to heavy subsidies and taxation. These "corrections" are supposed to take into account external costs and benefits that wouldn't be otherwise in the price but, unfortunately, it is also susceptible to corruption. In the case of oil the external costs are so large that taxation can completely take its competitive edge.
Claiming that oil is subsidized is a tired trope. Yes you can argue that the Iraq War was done for oil, it's just not a strong argument. Many oil producing nations use oil revenue to subsidize everything else they (the government) wants, so the subsidy argument stands on weak footing for both consuming and producing nations.
Oil has unpaid for economic externalities, specifically climate change. This is not the same as a subsidy.