Tuesday, February 25, 2014

Cheap oil has peaked. Oil companies hitting a wall.

Beginning of the End? Oil Companies Cut Back on Spending | Our Finite World: "A person would normally expect that crude oil production would rise as Capex rises, but Kopits shows that in fact since 2006, Capex has continued to rise, but crude oil production has fallen." [Global figures].


Anonymous said...

I sold my oil company stock at the right time! I predicted this would happen right about now.

Adam Tauno Williams said...

This may be true. I believe this is true. But it still doesn't matter. As long as the oil is produced at a profit, the capex-to-barrell ratio is a background thing. Those who do not want this to be true will never admit it is true, those who believe this is true will be viewed as 'those who want to believe this is true' and you have two opposing talking heads. Nobody cares, these facts will not move the debate. If prices rise - and stay risen - then the debate will change. The question is how to position things so that Public Transportation and improved built infrastructure is front-and-center in the public's imagination when that time comes.