Cheermongering about O&G in 2019

After getting fed up listening lately to fear-mongering about the apparently impending apocalypse of the Oil & Gas industry in the imminent future, here is an article with a refreshing jolt of optimism.  Some cheer-mongering about the O&G industry.

Oil & Gas industry haters, maybe you can go have a long argument with the vegan crowd about who can virtue signal louder about the impending demise of the eeeeeeevil O&G industry.  But please argue far away, over at an overpriced Starbucks franchise, where you won't bother others.  And where needlessly overpaying for a jolt of morning energy is considered a good idea by gullible consumers.

Hey Oil Price staff, maybe you want to start up a new web site / forum called Renewable Energy Price dot com to cater to that particular noisy niche market.

News flash: Oil & Gas is not going away any time soon.

Anyway, here is a Bloomberg article to counter the incessant pessimism about the O&G industry:

Confident Oil Industry Set to Ratchet Up Spending in 2019

After years of gloom, the oil industry’s out of its slump.

Three-quarters of senior oil and gas professionals surveyed by energy and maritime services company DNV GL AS say they are optimistic about the sector’s growth in 2019, their sunniest outlook since before the crude-price collapse in 2014. Confidence across the energy industry is now where it was in 2010, when Brent soared to $95 a barrel, about 50 percent above today’s level.

That good cheer will translate into higher spending, with 70 percent of professionals saying they’ll maintain or increase capital expenditure budgets this year. Many companies now say they’re competitive even as oil-price volatility heightens in reaction to geopolitical turmoil, after cutting costs to survive a collapse that lasted until 2017.

 

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Here, have some random happy frogs, for no reason.

It's OK to smile...

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10 minutes ago, Tom Kirkman said:

After getting fed up listening lately to fear-mongering about the apparently impending apocalypse of the Oil & Gas industry in the imminent future, here is an article with a refreshing jolt of optimism.  Some cheer-mongering about the O&G industry.

Oil & Gas industry haters, maybe you can go have a long argument with the vegan crowd about who can virtue signal louder about the impending demise of the eeeeeeevil O&G industry.  But please argue far away, over at an overpriced Starbucks franchise, where you won't bother others.  And where needlessly overpaying for a jolt of morning energy is considered a good idea by gullible consumers.

Hey Oil Price staff, maybe you want to start up a new web site / forum called Renewable Energy Price dot com to cater to that particular noisy niche market.

News flash: Oil & Gas is not going away any time soon.

Anyway, here is a Bloomberg article to counter the incessant pessimism about the O&G industry:

Confident Oil Industry Set to Ratchet Up Spending in 2019

After years of gloom, the oil industry’s out of its slump.

Three-quarters of senior oil and gas professionals surveyed by energy and maritime services company DNV GL AS say they are optimistic about the sector’s growth in 2019, their sunniest outlook since before the crude-price collapse in 2014. Confidence across the energy industry is now where it was in 2010, when Brent soared to $95 a barrel, about 50 percent above today’s level.

That good cheer will translate into higher spending, with 70 percent of professionals saying they’ll maintain or increase capital expenditure budgets this year. Many companies now say they’re competitive even as oil-price volatility heightens in reaction to geopolitical turmoil, after cutting costs to survive a collapse that lasted until 2017.

Tom, don't get 2019 investment mixed with peak oil predictions 6 years away. (my view closer to 2035). Feel relieved, even after a peak of oil consumption it will take decades for electricity to take over transportation. Even then plastics, large equipment, lubricants, etc will need oil. 

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Since 1950 oil averages a growth rate around 1.3 mbpd. All peak oil means is that oil growth quits growing. I believe there are significant headwinds to a fast decrease in consumption. But can electric car over home kill 1.3 Mbps in growth? Yep

 

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2 hours ago, Tom Kirkman said:

After getting fed up listening lately to fear-mongering about the apparently impending apocalypse of the Oil & Gas industry in the imminent future, here is an article with a refreshing jolt of optimism.  Some cheer-mongering about the O&G industry.

Oil & Gas industry haters, maybe you can go have a long argument with the vegan crowd about who can virtue signal louder about the impending demise of the eeeeeeevil O&G industry.  But please argue far away, over at an overpriced Starbucks franchise, where you won't bother others.  And where needlessly overpaying for a jolt of morning energy is considered a good idea by gullible consumers.

Hey Oil Price staff, maybe you want to start up a new web site / forum called Renewable Energy Price dot com to cater to that particular noisy niche market.

Living in a bubble doesn't help. If it helps you sleep better at night I can tell you things are going to keep going along with no change, well for the imminent future as for 6 yrs or so off well I'm not that good at bull manure.

1 hour ago, Boat said:

Feel relieved, even after a peak of oil consumption it will take decades for electricity to take over transportation. Even then plastics, large equipment, lubricants, etc will need oil. 

EV's are only part of the disruption. Plastics, large equipment, lubricants, etc are been targeted by many companies. As for decades for EV's to take over, maybe if that implies getting rid of all ICE's but it will soon start to rapidly change for sales.

1 hour ago, Boat said:

Since 1950 oil averages a growth rate around 1.3 mbpd. All peak oil means is that oil growth quits growing. I believe there are significant headwinds to a fast decrease in consumption. But can electric car over home kill 1.3 Mbps in growth? Yep

Thing is with peak oil it will kill the value of the companies involved with it and prices will drop, doesn't take much over supply to tank them. Electric cars are only part of whats going on, electric buses over shadow them at present.

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Just a reminder, electricity is not magically generated by green, renewable unicorn farts.  

EVs will not result in the demise of the Oil & Gas industry. 

The bulk of electricity comes from burning hydrocarbons, and wasting energy in the conversion process of generating electricity. 

It's more efficient to burn hydrocarbons directly in ICE cars than it is to burn (easily storable) hydrocarbons to generate electricity (not very feasible or efficient to store large quantities of fleeting electricity) and send electricity through a nation-wide electrical wire grid.

https://afdc.energy.gov/fuels/electricity_production.html

● ● ●  According to the U.S. Energy Information Administration, most of the nation's electricity is generated by coal, natural gas, and nuclear energy.  ● ● ●

Electricity is also produced from renewable sources such as hydropower, biomass, wind, geothermal, and solar power. Together, renewable energy sources generated about 17% of the country's electricity in 2017.

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17 hours ago, Boat said:

Tom, don't get 2019 investment mixed with peak oil predictions 6 years away. (my view closer to 2035). Feel relieved, even after a peak of oil consumption it will take decades for electricity to take over transportation. Even then plastics, large equipment, lubricants, etc will need oil. 

Electricity will only work in a hybrid engine system for large vehicles and ships or locomotives. Natural gas or clean diesel are the best options. They do not need to be hybrid but could be. 

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17 hours ago, Boat said:

Since 1950 oil averages a growth rate around 1.3 mbpd. All peak oil means is that oil growth quits growing. I believe there are significant headwinds to a fast decrease in consumption. But can electric car over home kill 1.3 Mbps in growth? Yep

 

Nope.

IEA Chief: EVs Are Not The End Of The Oil Era

Electric vehicles (EVs) today are not the end of global oil demand growth, nor are they the key solution to reducing carbon emissions, Fatih Birol, the Executive Director of the International Energy Agency (IEA), said during the ‘Strategic Outlook on Energy’ panel at the World Economic Forum in Davos on Tuesday.

According to Birol, analysts need to put things into perspective and consider that five million EVs globally is nothing compared to 1 billion internal combustion engine (ICE) cars.

“This year we expect global oil demand to increase by 1.3 million barrels per day. The effect of 5 million cars is 50,000 barrels per day. 50,000 versus 1.3 million.”

“Cars are not the driver of oil demand growth. Full stop,” Birol said.   

The drivers of oil demand growth are trucks, the petrochemical industry, and planes, with Asia just starting to fly, the IEA’s head said.

“To say that the electric car is the end of oil is definitely misleading,” Birol noted. ...

 

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On 1/22/2019 at 2:04 PM, Boat said:

Tom, don't get 2019 investment mixed with peak oil predictions 6 years away. (my view closer to 2035). Feel relieved, even after a peak of oil consumption it will take decades for electricity to take over transportation. Even then plastics, large equipment, lubricants, etc will need oil. 

Based Saudi says:

“I don’t see peak [oil] demand happening in 10 years or even by 2040,” Amin Nasser, president and chief executive officer of Saudi oil giant Saudi Aramco told CNN Business' Emerging Markets Editor John Defterios on the sidelines of the World Economic Forum in Davos this week.

“There will continue to be growth in oil demand … We are the lowest cost producer and the last barrel will come from the region,” Nasser told CNN.

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