Rick_Muller wrote:...and when that runs out? Can I ask about who dictates the price of the oil? Call me cynical if you like, but that’s my view
Hi Rick, the global market for oil determines the price of oil. Yes, OPEC tried to control the price - and on occasions in the past have determined the price by limiting the supply - but OPEC can no longer control the price as they are no longer the marginal supplier. The USA is now, once again, a large oil producer.
High oil prices has resulted in a lot of the demand looking for alternative energy sources. Natural gas is now often used where oil was once the predominant source of energy - and of petrochemical feedstocks (plastics etc).
The "green agenda" has also reduced the demand for oil as energy demand switches to electric vehicles (still a long way to go) and wind and solar grows capacity.
It may surprise some; there is no shortage of crude oil buried in the ground and available to be developed. Fracking has made a lot of this oil easily extractable and at prices that are economic in the $60-$70 per barrel range (some reservoirs can produce economically at even lower costs).
I recommend looking at International Energy Agencies report: World Energy Outlook 2017
http://www.iea.org/weo2017/" onclick="window.open(this.href);return false;
It's also interesting to compare the 2017 report with the 2016 version:
http://www.iea.org/newsroom/news/2016/n ... -2016.html" onclick="window.open(this.href);return false;
There are other publications that address the same issue: oil supplies are not running out, natural gas is available in amounts that significantly excede the supply of oil - and technology has improved so that nat. gas is no longer limited to transportation via pipelines. Solar pv has fallen enormously in cost. Wind energy is also growing. And, if oil isn't in limited supply, OPEC cannot control/dictate the price.
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