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Exxon says 20% of oil, gas reserves threatened by low prices
serf
Member Posts: 9,217 ✭✭✭✭
So as we come out of the bottleneck with cov19 and begin to try to recover Hydrocarbons will be in shorter supply when demand starts to increase. This is how they will wean consumers off the gasoline, diesel,propane and natural gas etc. Less mining of oil & looking for future reserves means higher prices when demands increases to like before the crisis. So 3.00 a gallons of gas before will be 4.00 a gallon after and most states will raise road Taxes before it starts to cover their tracks of being unfair to the consumer.
serf
If depressed prices persist for the rest of the year, “certain
quantities of crude oil, bitumen and natural gas will not qualify as
proved reserves at year-end 2020,” the company said in a regulatory
filing on Wednesday. A 20 per cent hit would impact the equivalent of
almost 4.5 billion barrels of crude, or enough to supply every refinery
on the U.S. Gulf Coast for 18 months.
Comments
Brad Steele
Within the next 20 years I would guess that there will be electric vehicles that will run for a full day of driving and can be charged overnight. This will take a huge burden of the oil supply, provided we can ramp up nuclear power generation in time to take advantage of them. Likewise, electric heat in homes is becoming a practical alternative with a heat pump and booster power strips for the coldest weather. Oil will be a necessary fuel for air transport for the foreseeable future, and there should be a 100 year plan to preserve that capability until something else is found. Wind and solar will be good booster sources, but we need to maintain a base load generation capability that is not dependent upon the weather. The mystical 'peak oil' was supposed to have hit us in the 80s, then the 90s, then the 2000s, and is still being shifted. Current estimates seem to be more realistic and suggest that peak oil production could be reached sometime in the 2040s. At this point, prices will begin to raise quickly, and less economical means of oil production and/or creation will become viable. The increased cost will drive down demand to some degree, of course, but it will also make alternative energy sources more attractive as well.
I do not see our descendants living like cavemen, Neal. There will be parts of the world that struggle, but the 1st and 2nd world countries will adapt.
Brad Steele
Is that really what you want for your descendants?
Brad Steele