And the result is loonie continues to get crushed USD/CAD now solidly over 1.40 no bottom in sight until oil does.
Cheapest #oil: low-quality Western #Canada Select crude slumps to little more than $15 a barrel - #OPEC #Alberta pic.twitter.com/xuDEUTz35F
— Javier Blas (@JavierBlas2) January 13, 2016
2 comments:
Is the end of an era... Even when the 2014 investment in 'tough' oil projects are exhausted (due to poor prices and lack of investment), Iran and Iraq production will make up any lack of supply, even if S.A. tightens production, they are losing control over price setting with the supply glut in excess of demand. If someone who is not Hillary ends up in the WH (Trump or Sanders), the sanctions to Russia will be dropped, increasing supply further.
Natural gas is going to substitute (slowly, because infrastructure investment for it to make its way through is slower) much of the quota of oil and coal re. energy needs. Non-Renewable tech (different solar and win) now have lower cost than the heavily subsidized and cost-externalizing carbon industries due to the big push that is being done because ecologic and geopolitical concerns. The conversion to electric cards, transportation policies in developing nations like China, and the decreasing population in developed nations, will be the nail in the coffin for this monopolist industry driven by banana republics, and enabling power games over zealot foreign policy makers in the West, which has imposed much violence over the last half century around the world. Chaos will ensue, and countries will have to adapt to the new reality, but the majority of humanity will improve. Along this many corporate interests will lose their political levers, as well as the politicians playing their game.
Is up to us how fair we want the new rising energy paradigm to be, contrary to the old oil paradigm, the new sources will allow much more horizontal structures and distributed wealth and income. Regardless of diminishing energy production or not, if there will be growth or not, the real circumstances of how energy will be produced later on this century will kill many of the policies that were pursued in the last century.
If the problem of energy production is solved (or even reverted, as pre-industrial revolution it was more fairly distributed), this will shake our political structures much more than anything else (except demographics, which is the other big theme of the century), and is also related to any ecological and resource problems we may or may not have.
the era of everyone wanting to become a petrostate, is coming to an end, and great pain and adjustment will be necessary for some, but the many will benefit from this.
Who predicted that peak oil would play out like this?
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