So, WTI is at $22.35 right now, and Brent Crude is at $25.62.
The oil-price crash from mid-2014 to early 2015 *bottomed* at $26, as I recall.
Granted, we started from a much higher price, but...
bloomberg.com/news/articles/…
The oil-price crash from mid-2014 to early 2015 *bottomed* at $26, as I recall.
Granted, we started from a much higher price, but...
bloomberg.com/news/articles/…
We've literally hit a point that took us *months* to reach in 2014 to 2015...
And then gone past it.
bloomberg.com/energy
And then gone past it.
bloomberg.com/energy
Oil and gas have some dire problems relating to renewables already.
The US military during the Obama Adminstration already proved you can finance many renewable installations at a *negative* cost.
Renewables get cheaper and more productive *every* year.
The US military during the Obama Adminstration already proved you can finance many renewable installations at a *negative* cost.
Renewables get cheaper and more productive *every* year.
And just breaking down algae in biodigesters could wipe out natural-gas extraction, not to mention coal (low-oxygen burn of the leftover slurry) and oil over $25/barrel (conventional gas-to-liquid (GTL) technology).
But demand destruction is an *immediate* tsunami.
But demand destruction is an *immediate* tsunami.
Short version: There's only so much space to *store* excess oil.
If production dramatically exceeds demand, then even cutting prices doesn't help sales if no one wants to go anywhere or buy anything and there's nowhere *to* go and nothing *to* buy.
If production dramatically exceeds demand, then even cutting prices doesn't help sales if no one wants to go anywhere or buy anything and there's nowhere *to* go and nothing *to* buy.
China has a similar but in many ways equally dire problem with their manufactured exports.
At least oil is consumed.
Radically suppressed demand for consumer goods for a year to a year-and-a-half?
And every bankruptcy dumps new items on the market.
At least oil is consumed.
Radically suppressed demand for consumer goods for a year to a year-and-a-half?
And every bankruptcy dumps new items on the market.
And once we're through this:
If this reaches millions of deaths in the US, that won't just change many people's priorities...
Millions of deaths means millions of estates liquidated.
Millions of *tons* of high-quality goods, many of which won't even be sold, but given away.
If this reaches millions of deaths in the US, that won't just change many people's priorities...
Millions of deaths means millions of estates liquidated.
Millions of *tons* of high-quality goods, many of which won't even be sold, but given away.
In other words, this will be brutal for their economy even if the virus is contained through dramatic social distancing and lockdowns.
It will likely be terminal for them if it's not.
It will likely be terminal for them if it's not.
