The world wide oil industry is fighting against progress. Yes, it is true that supply out strips demand when it comes to oil. OPEC has decided not to stabilize the price. It's their play on forcing the U.S. to cut back on production or bring their oil manufacturing to a stand still. The U.S. is leading in oil production these days but for how long. With prices this low, it becomes non-feasible to continue oil production in the U.S. This also applies for the Canadians. OPEC seems to believe if they can allow the price to plunge, they will survive and be the last man standing.
The fact of the matter is, if progress in new energy developments continue, oil may become obsolete. If not obsolete, its use may eventually be so minuscule that the industry collapse. In reference to new energy, electric vehicles are all the rage. There is also talk of hydrogen fuel cell vehicles. A fusion power plant was mention to be feasible, viable and on track to be online in the next ten years (see: Lockheed Martin/ Fusion Plant). All of this spells bad news for the oil industry. So as an industry, they allow oil prices to drop and stay that way. This will encourage the populist to remain dependent on oil. With gas prices at $2.00 per gallon in some areas, Our views on alternative energy is changing ever so slightly. More people are buying gas guzzling vehicles because of this.
The question now is for how long will the price of oil remain low. At some point, the oil industry may decide, progress is inevitable, let's get all we can get before the end comes. At that point, the price of oil will go up and the industry will gouge us for all they can. But for now, the low prices reminds us of how great the use of oil and gas is. It reminds us of how easy on the wallet it can be. Those are strong reminders and how much they will affect us remains to be seen. While it appears that OPEC is in a fight against other oil producers, it is apparent that what concerns all of them is the survival of their industry in the form of one entity. Electric cars do not need gas.
The fact of the matter is, if progress in new energy developments continue, oil may become obsolete. If not obsolete, its use may eventually be so minuscule that the industry collapse. In reference to new energy, electric vehicles are all the rage. There is also talk of hydrogen fuel cell vehicles. A fusion power plant was mention to be feasible, viable and on track to be online in the next ten years (see: Lockheed Martin/ Fusion Plant). All of this spells bad news for the oil industry. So as an industry, they allow oil prices to drop and stay that way. This will encourage the populist to remain dependent on oil. With gas prices at $2.00 per gallon in some areas, Our views on alternative energy is changing ever so slightly. More people are buying gas guzzling vehicles because of this.
The question now is for how long will the price of oil remain low. At some point, the oil industry may decide, progress is inevitable, let's get all we can get before the end comes. At that point, the price of oil will go up and the industry will gouge us for all they can. But for now, the low prices reminds us of how great the use of oil and gas is. It reminds us of how easy on the wallet it can be. Those are strong reminders and how much they will affect us remains to be seen. While it appears that OPEC is in a fight against other oil producers, it is apparent that what concerns all of them is the survival of their industry in the form of one entity. Electric cars do not need gas.
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