Posted on 01/07/2016 6:42:52 PM PST by Lorianne
This article was written by a complete idiot. Is the world population going to shrink or grow? Are the people in 3rd world countries going to be content with oxcarts or are they going to want scooters, then cars? How’s solar power doing?
Idiot. Is the writer’s name a pseudonym for Algore?
Have never read such drivel on Energy.
Did you see this in article:
“Redirecting just half the $50bn that oil companies are likely to spend this year on exploring for new reserves would more than double the $10bn for clean energy research announced this month by 20 governments at the Paris climate change conference. The financial returns from such investment would almost certainly be far higher than from oil exploration”
absolutely hilarious, as if throwing money into green schemes will EVER have any payout.
I will never waste my time reading anything else from the Guardian.
Gas has dropped way down in price yet the prices of most everything else seem to stay high. Seems to be a big disconnect.
At the exact same time.
HA HA HA HA HA HA HA HA!!!!!!!!!!!!!!!
In a normal competitive market, prices will be set by the cost of producing an extra barrel from the cheapest oilfields with spare capacity. This means that all the reserves in Saudi Arabia, Iran, Iraq, Russia, and Central Asia would have to be fully developed and exhausted before anyone even bothered exploring under the Arctic ice cap or deep in the Gulf of Mexico or hundreds of miles off the Brazilian coast.
REALLY?!?!?
We should wait until all reserves are exhausted before we bother to look for more?!?!?
This one is insane.
This is a fallacy. Say you and your family own land that produces oil. You know the capacity and it is small compared to the market. You have diversified and have a lot of money in the bank ensuring you a very comfortable living. When prices drop do you pump as fast as you can and sell now, or decide to curtail pumping with the expectation that prices will go up again as other suppliers likewise respond to low prices and begin withholding oil from the market.
Of course you do not sell at the lowest price you can produce it for when you can always sell it at some price and hope to be able to sell it for a much higher price - and you don't actually need most of the money right now or for the next decade even (assuming that your heirs are not wastrels, which is a big assumption - just look at the boomers).
According to Aesop's fable about the ant and the grasshopper God gave us the ability to plan for future contingencies at least 2600 years ago. Lots of holders of energy stocks are in it for the very long term, e.g. pension funds, university endowments, trusts, etc. Most of them want to know that the companies they rely upon for the institution's long term future are also interested in ensuring their own long term future. Stupidity abounds, of course, and boomer leftists have eaten most of our seed corn - but still...
——Oil companies could diversify——
They have already diversified leveraging their own products
“At the Mont Belvieu plastics plant, Mitsubishi Heavy Industries will build the two polyethylene lines, with Jacobs Engineering Ltd. to oversee enabling works and interconnections at both locations, ExxonMobil said.”
http://www.ogj.com/articles/2014/06/exxonmobil-begins-us-gulf-coast-ethylene-expansion-project.html
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