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Miguelito Loveless

(4,460 posts)

9. They continue to believe that

Reply to mr_lebowski (Reply #1)

Fri Aug 28, 2020, 01:12 PM

Aug 2020

oil prices will "rebound" to $100+/bbl.

The problem is, if it does, they are just as screwed as if it doesn't.

Say oil does rebound, and heads to $120/bbl. Then that points to gasoline at $5/gallon. This causes people to stop driving SUVs/Pickups, causing people to stop buying them, and looking at EVs to lower driving costs. Each person moving to an EV translates into "demand destruction" for oil. Once people start driving electric, it is unlikely they will ever return to gasoline. No, demand, oil supplies glut the market and prices fall, oil producers lose money, and start going bankrupt.

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18 replies

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Highlight:

After 92 Years, Exxon Dropped From Dow Jones [View all] packman Aug 2020 OP

Futures dropped below $0 for a few hours a few months back ... mr_lebowski Aug 2020 #1

They continue to believe that Miguelito Loveless Aug 2020 #9

True though even if we did go full electric worldwide oil would probably still be needed for some cstanleytech Aug 2020 #12

Oh, lots more than that Miguelito Loveless Aug 2020 #14

While Most Lubricants.... ProfessorGAC Aug 2020 #15

Fantastic news. This is a huge signal that the economy is shifting away from legacy industries jpljr77 Aug 2020 #2

Some of those land acquisitions are placeholders procon Aug 2020 #3

Below $0 was a very technical event since nobody had room to take delivery of the oil contract. Lucky Luciano Aug 2020 #4

Meanwhile Dolt45's administration opens the Artic wildlife refuge to drilling csziggy Aug 2020 #5

The carbon bubble is to the mortgage bubble Miguelito Loveless Aug 2020 #6

exxon and the companies before it helped with the demise of the streetcar. good riddance . AllaN01Bear Aug 2020 #7

Oil companies have opposed all forms of public transportation in this country Yeehah Aug 2020 #13

"'Below $0 per barrel"??'" - you missed the big thread on that BumRushDaShow Aug 2020 #8

Opening ANWR to drilling is nothing but a big "FUCK YOU" Warpy Aug 2020 #10

Oh Trump boasted hard about low gas prices last night IronLionZion Aug 2020 #11

Kick ck4829 Aug 2020 #16

Implications that need to be considered melm00se Aug 2020 #17

I guess they lose money on each barrel but make it up on high volume? lagomorph777 Aug 2020 #18