The problem is that while people know there are other points of view, too many assume that their own view is THE correct one. And there are lots of positions one can take that are 'right' from one angle, but wrong from another. It may be 'right' for you and your cronies, but wrong for the vast majority of people. It may be right in the short run, but wrong in the long run. Or it may have been right for a time, but the times have changed.
We are closing in on the time when oil stops being the right decision. Where big oil can put there pipelines wherever they please, the people whose land they take to do it, be damned. It's already the wrong decision when it comes to climate change. Massively wrong. And before long, all the subsidies and political and military assistance that have favored for big oil will be tilting more favorably for those other energy sources.
That's the essence of this article from OilPro - a website that appears to be aimed at people working in the oil industry.
"The oil industry is in a horrible dilemma. New developments simply do not have enough time to play out. Oil sector developmental activity will disappear for around two decades. The disruption crash is inevitable - it will stifle new projects. It compromises recovery of initial CAPEX outlay. New projects, if they were to commence today, will barely start production before the disruption black hole opens up and swallows them. Projects simply will not happen. This new situation all but wipes out cost recovery opportunity.
Supply side capacity constraints are unlikely to occur. Existing players have a brief period to produce while demand persists, accrue cash, and use that cash to diversify out of oil. This is the Saudi strategy. It is now perfectly clear what they are up to. They are out to aggressively realise what they can now, while prices are elevated(!), and use that cash strategically to develop other sectors in their economy for the longer term. Oil's heyday is over. Hydrocarbons are in decline. COP 21 dealt the killer blow. The Saudis know it. Oil companies that want to survive will copy them - the race to diversify out of oil has started. It is now a matter of survival. Recent sector history is littered with half-hearted efforts in this regard. A sense of urgency might finally produce a different result. Dividends are going to have to stop. It is madness to continue to pay them when your very existence is at stake.
The economics of projects currently underway - such as Statoil's Johan Sverdrup - will undoubtedly undergo intense review in the light of this revelation. Most projects currently on the slate will be shelved indefinitely. The same goes for a number of projects already underway. This will be painful for those involved."Alaska legislators need to upgrade their mental, energy software.
Thanks to Jeremy for this article.