The Oil price
Today's media environment around oil is kind of the "mirage peak oil '' the sinking of OPEC", "plenty of oil", etc. You know the saying 'when at a poker table you do not know who the patsy is that the pigeon is you ... "I like it a lot.
When I read here and there "the permanently cheap oil", I have a booouuu brouuu happens to my ears, not the cooing dove lovers, but brouuuu brouu pigeon.
Saudi Arabia announces sale of 5% of the goose that lays golden eggs (Aramco) and the creation of a sovereign fund $ 2 000 billion! To do what? To purchase tangible everywhere in the world! Why? To reduce its dependence on oil because of sustained low prices ... I feel a pigeon just landed on my shoulder and he cooed in my ear. Prices were down for 150 years, but now it becomes a problem (Saudi Arabia marginal costs the lowest in the world) ...
We also have an oil giant that buys a lithium battery manufacturer to a billion euros. This same oil giant had bought for $ 1.3 billion in a giant solar energy in 2011. This is not the only oil company to have done. If you pay attention, you will notice a small semantic change reveals, for 10 years, among the major oil companies. They talk more and more energy instead of oil. Gradually, their job becomes energy producer and not oil ...
Changes in the story does not arrive in a timely manner, but diffuse. It's the same for peak oil, oil production gradually becomes more complex, more expensive, the EROIE down and inevitably its production will decrease (but not stop). But today I will not list you again the factors that make the price of structural bull oil (you can find older topics). Instead here's a simple graph by way of explanation and conclusion.
Dr Thomas Chaize