Eric, that's funny. You have it back to front. <I admit it. I felt sorry for those poor, duped oil, gas and coal company investors back during the early part of 2015. Many of these guys, fed a constant stream of bad information from the financial news sources, at the time were still enraptured by the notion that fossil fuel stocks were then cheap and that the situation was nothing more than some kind of golden buying opportunity.
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The oil business is based on cheap oil. Oil is down from $140 a barrel, to $30 a barrel. That's because there's lots of the stuff and to sell more, the price has to be cut. People who thought oil was going to carry on up are the ones losing their shirts. The electric and other competitors who thought oil would only go up so any wacky alternative energy source would be a winner are also losers.
At $149 a barrel, oil in uncompetitive, which is why electric cars became so popular. At quarter the price, filling 'er up is not a financial disaster.
Burning carbon remains a good thing to do. The doomster Alarmists have got no heating to show for 100 years of effort in filling the air with CO2. It has gone from 280 ppm to only 400 ppm. It's leaking out quickly. It's like filling a bucket with a hole in the bottom. The more it's filled the faster it leaks out.
Methane is a better photon absorber, but the process of absorbing light destroys it so it has a short half life in air. The bucket leaks very quickly in that case.
At $20 a barrel, oil shares will be a big buy! In 1986 oil got down to $10 a barrel and killed of my various alternative energy projects. In Y2K oil was $10 a barrel again. The 21st century saw a huge rise to $140 a barrel. No wonder people got electric car religion. Joined the photovoltaic cult. And did anything they could to avoid spending that $140.
It's possible we'll even see $10 a barrel. Most likely not that low since the US$ has been very heavily diluted over the last 30 years.
Mqurice |
