04-12-2022, 07:33 PM
Quote: @BigAl99 said:The guy that told me almost a year ago that inflation was transitory and pretty much behind us and "once supply chains are delivering back on schedule, unless cold weather, cyber attacks and bad weather around the Suez canal don’t happen again we should be good with oil" in response to my comment that inflation was only going to rise as were oil prices thinks he's "schooling me"....too funny. I said a year ago that we were heading for Carter style inflation and gas prices...you said I was wrong. Inflation hit a 40 year high today at 8.5% by the way.
No Badger, I've known it for quite awhile, and I disagree that this article about a paper in any way supports your point or lack there of. Review the article and read the conclusion. Any clue what the typical debt cycle is for financing wells? I know.
"This flexible production process has helped sections of the industry
avoid the commodity’s uncertain outlook by narrowly focusing on the near
term. However, hydraulic fracturing, while offering a different
temporal and financial scale of investment, is often more expensive per
barrel. Confronted by COVID-19 disruptions, massive debt, and public
contestation [SIC], some predict the end of fracking, as the least profitable,
most indebted players go under. This paper hypothesizes that
intensifying uncertainty over the future of oil – above all from the
renewable energy transition – will, however, ironically further
stimulate this destructive form of extraction."
I liked this point in particular:
"Outside of the US, it is unlikely that something like the scale of the
American fracking boom will be replicated – especially in oil. American
fracking has benefited from pre-existing oil and gas infrastructure, a
large community of advanced oil and gas talent and technology, a massive
resource base, little to no regulations, oil and gas subsidies,
geopolitical desires for ‘energy independence,’ and a unique
relationship to massive lines of credit (McClean, 2018)"
Read the conclusion:
"Though some may understandably celebrate the disruptions they see in the
oil industry, fracking is a tool oil capitalists in North America are
using to adapt to this challenging environment. Shale has not solved
their conundrum – it has not ended these cycles of volatility nor
guaranteed oil’s future; but it gives sections of the industry a means
to ride the waves. In this context, scholars and activists should
question those who suggest that fracking or, for that matter, oil will
melt away in face of recent oil market tumult. There is no automatic
transition to renewables underway. Political action is required to solve
the climate emergency."
Does the term temporal confuse you, in this context it means short term. Sixty percent of companies say investors, not management or corporate boards, the folks that the companies answer to. The investors, not speculators, see it for what it is, quick money that doesn't pay off for the duration of the debt. The investors want "Capital discipline" even though there is no "Lack of access to financing". Catch the subtlety how the author says "uncertainty of the commodity" and in the next uses "Scale of investment" two different CONCEPTS. Where in the article does he mention policy. Are you really of the mind that the transition to renewable energy is just a matter of political whimsy and not economics or technology. Keep whinging it's entertaining and is as satisfying as McDonald's fries, no value but satisfying as being consumed. Just call me the Bus, I take you to school every time.
https://www.foxbusiness.com/economy/marc...-inflation
Sounds like I was right and you were wrong. Guess that's what you get for blindly parroting Team Blue talking points.
Hope they get that ship unstuck in the Suez and the weather gets better soon....
![[Image: Short-Bus-Meme-Funny-Image-Photo-Joke-03.jpg]](http://quotesbae.com/wp-content/uploads/2018/01/Short-Bus-Meme-Funny-Image-Photo-Joke-03.jpg)
![[Image: not-drilling-oil-here-global-warming-sam...C346&ssl=1]](https://i0.wp.com/politicallyincorrecthumor.com/wp-content/uploads/2022/04/not-drilling-oil-here-global-warming-same-amount-of-oil-elsewhere-burn-more-get-it.jpg?resize=520%2C346&ssl=1)
