Adam Ash
Forum Replies Created
-
Posts
-
USA net imports: nine million bbl per day. Russia net exports: nine million bbl per day. Regardless of the price of oil, it does not take a genius to see whose eyes are going to water first in this face off.
Hi Carbon!
Yes indeed one of the probable causes of a breakdown will be collapse of the financial systems; if you cannot outbid China for oil then at some point your local refineries will not get any, and bang! You are into the Ten Day countdown.
Look at places like Egypt which turned from being a net oil exporter to a desperate importer with minimal internal production to pay for oil imports. GB is in the same state with its careless depletion of North Sea reserves, and the risks of a sudden collapse are not dissimilar.
There is time for some pottering with policy, and redistribution of wealth and benefits, but energy supply and affordability is (in my view) top of the worry list. Clearly the major private oil companies think oil production is a loosing game as they are now reducing capex on exploration and focusing on selling assets to pay dividends. Not exactly a vote of confidence in the future of oil production!
They term it ‘… changing the focus from barrels of oil per day to profitability.’ I guess you can be profitable by selling the family silver, for a while. But in the mean time production can be expected to fall off a cliff quite soon.
It will be interesting to see how it works out, wont it?!
