All bets are off on the Atlantic coast. Are they scurrying really? I think they are strategizing (okay maybe squeaking a bit and a little concerned but they are a long way from being beaten).
The Saudis are a bit more worried than they let on. I think they see how the opinion wars over fossil fuel use is lost and they want to delay the shift to alternatives. They do this by keeping the price of oil low enough to keep it competitive with alternatives. Why is there a glut of Saudi oil on the market? Yes fracking made a big difference but so? Why do the Saudis need to drop prices further? Some say to compete with fracking. Didn’t fracking which is NOT a new technique btw (us old fogies remember) already exist for extraction? It just never necessary before.
Is it necessary now? You mean with China and India using cars like crazy that doesn’t balance out the oil markets? Well it does. Why then do the Saudis contribute to the glut rather than letting prices rise? To drive fracking out of business everywhere? Think that will happen soon? So why?
The why is that for the first time alternatives like solar and wind are the real competition. It isn’t temporary competition either. New innovation sounds the death knell for oil, coal and gas. Solar roads for charging solar cars? Why buy an oil based heating furnace when you can use solar? Well you might think about it looking at the low price of oil these days.
Every new advance in alternatives is a straw that will break the camel’s back (apt metaphor in this case) when talking about oil. The Saudis are trying to keep oil attractive. We are told that they are competing against fracking resources but I think they welcome fracking because a glut of oil keeps oil looking attractive way into the future.
During the last few years when oil prices were sky high guess what happened? Innovation in solar and wind power is what happened. Solar and wind took off like a rocket and the oil industry does not want that to happen again any time soon. No more talk of peak oil, declining supply etc… just a glut of oil… my my… what a surprise that would appear to be given all that impassioned hand wringing about peak oil.
A glut… as if fracking was something new… lol. Solar roofs anyone? Solar and wind creating jobs everywhere? I think the Saudis are planning for the future…lol.