{"id":1163,"date":"2014-11-06T10:55:02","date_gmt":"2014-11-06T15:55:02","guid":{"rendered":"http:\/\/olduvai.ca\/?p=1163"},"modified":"2014-11-06T10:55:02","modified_gmt":"2014-11-06T15:55:02","slug":"oil-price-slide-no-good-way-out-our-finite-world","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=1163","title":{"rendered":"Oil Price Slide \u2013 No Good Way Out | Our Finite World"},"content":{"rendered":"<p><a href=\"http:\/\/ourfiniteworld.com\/2014\/11\/05\/oil-price-slide-no-good-way-out\/\">Oil Price Slide \u2013 No Good Way Out | Our Finite World<\/a>.<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">The world is in a dangerous place now. A large share of oil sellers\u00a0<strong style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; font-weight: bold; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\"><em style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; font-style: italic; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\">need<\/em><\/strong>\u00a0the revenue from oil sales. They have to continue producing, regardless of how low oil prices go unless they are stopped by bankruptcy, revolution, or something else that gives them a very clear signal to stop. Producers of oil from US shale are in this category, as are most oil exporters, including many of the OPEC countries and Russia.<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">Some large oil companies, such as Shell and ExxonMobil,\u00a0<a style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; color: #0066cc; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\" href=\"http:\/\/online.wsj.com\/articles\/big-oil-feels-the-need-to-get-smaller-1414973307\">decided even before the recent drop in prices that they couldn\u2019t make money<\/a>\u00a0by developing available producible resources at then-available prices, likely around $100 barrel. See my post,\u00a0<a style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; color: #0066cc; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px; border: 0px initial initial;\" href=\"http:\/\/ourfiniteworld.com\/2014\/02\/25\/beginning-of-the-end-oil-companies-cut-back-on-spending\/\">Beginning of the End? Oil Companies Cut Back on Spending<\/a>.\u00a0These large companies are in the process of trying to sell off acreage, if they can find someone to buy it. Their actions will eventually lead to a drop in oil production, but not very quickly\u2013maybe in a couple of years.<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">So there is a definite time lag in slowing production\u2013even with very low prices. In fact, if US shale production keeps rising, and Libya and Iraq keep work at getting oil production on line, we may even see an increase in world oil production, at a time when world oil production needs to decline.<\/p>\n<p style=\"background-image: initial; background-attachment: initial; background-origin: initial; background-clip: initial; background-color: transparent; vertical-align: baseline; background-position: initial initial; background-repeat: initial initial; padding: 0px; margin: 0px 0px 24px 0px; border: 0px initial initial;\">&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Oil Price Slide \u2013 No Good Way Out | Our Finite World. The world is in a dangerous place now. A large share of oil sellers\u00a0need\u00a0the revenue from oil sales. They have to continue producing, regardless of how low oil prices go unless they are stopped by bankruptcy, revolution, or something else that gives them [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[594,595,596,600,723],"class_list":["post-1163","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-oil-prices","tag-oil-production","tag-oil-supply","tag-opec","tag-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1163","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1163"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1163\/revisions"}],"predecessor-version":[{"id":1164,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/1163\/revisions\/1164"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1163"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1163"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1163"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}