The Price Isn’t Right: Fundamentals Don’t Support $100 Oil | Art Berman

https://www.artberman.com/blog/the-price-isnt-right-fundamentals-dont-support-100-oil/

-2 points · 3 comments · view on lemmy.world

3 Comments

vzq@lemmy.world · 4 pts · 110d (2 replies)

Economists are a funny bunch.

“Electrification is not economically viable unless the oil price rises dramatically, to say $100/barrel”

“Not like that!”

eleitl@lemmy.zip · 3 pts · 109d

The thing is, electricity is not fungible with most uses of oil, gas and coal. And the current renewable infrastructure cannot be built and maintained without fossil input. High energy prices cause demand destruction. Our civilisation's infrastructure has been built during times of low energy costs of energy (ECoE) which is in our past. So we need maintenance triage, because part by part it is going away.

iocase@lemmy.zip · 1 pts · 109d

Economists are to capitalists, what food scientists are to junk food companies (which are predominantly owned by tobacco companies btw)