Oil is a $70 trillion industry and yet a barrel of crude is currently $60.
What does that mean? Nothing. You are just creating a faux correlation between two prices with no justification.
What does that mean? Nothing. You are just creating a faux correlation between two prices with no justification.
Because even the battery market is saturated, recycling is the only source you’ll need.
But yes, I would really like to know the rationale behind the GP's opinion.
Chesapeake Energy, previously an O&G industry darling, is struggling under $9 billion in crushing debt, and has made statements they may not be able to continue as a going concern. At the same time, investors are not so interested in overly optimistic and aggressive well depletion projections.
https://www.reuters.com/article/us-oil-opec/opec-extends-oil... (OPEC extends oil cut to prop up prices as economy weakens)
https://www.bloomberg.com/opinion/articles/2019-09-08/the-wo... (The World’s Oil Glut Is Much Worse Than It Looks)
Climate concern means that instead of the choice being between selling your oil for $1 today or hoping to get $2 tomorrow, now it's $1 today or get lynched for pumping oil out of the ground tomorrow.
Worse, the producers don't know when exactly tomorrow is. Probably it's before 2050, but maybe it's before 2040. If enough people get scared it could be sooner. This is one reason many in that industry actually supported global carbon taxes. Having your entire industry phased out smoothly is a nice predictable future. Sure, you'd rather continue to make money forever, but a smooth exit is the next best thing.
Some readers have probably had garden leave, an employer terminates you but pays you salary for a few months to stay home and not work - as an employee you can't tell any secrets or work for someone else. It's unsatisfying, but it's predictable, the mortgage gets paid. Much scarier to show up one morning and find oh, the company went bankrupt, you won't get this month's pay and the tax man hasn't received their cut for the last six months either. Same thing with a gradually increasing system-side carbon tax. Using oil becomes uneconomic, but gradually and predictably. The industry dies but the people running it come out OK. We've opted for a world where it may all go very wrong for them very quickly.
Disclaimer: several family members are current and previous Chesapeake employees. I no longer own any of the stocks listed above.
https://en.wikipedia.org/wiki/Barrel_of_oil_equivalent
OP gave an implicit justifications, bigger industry can mean that the goal to more efficient produce gets backed by more $€£, and thus gets reached more faster - at least if no monopoly will be created (as then the consumer is screwed 100%).
That price is an example of extreme economic efficiency. Battery prices will go down over time as the industry grows.