Moving from peaking to booming
June 19, 2017 10:36 AM Subscribe
Less than a decade ago, peak oil was a constant source of anxiety on MeFi (and around the world), but now the world faces an oil price anchored around $55/barrel. The reason is the swarm - US shale producers that can clamber into the market profitably at that price, and which are getting ever more competitive post recent fracking-bust as they drive down costs (and eliminate jobs, which are increasingly in renewables). Though the future is never certain, almost every major OPEC nation needs prices above $55 to balance their budget. While increased fossil fuel use can be very bad for climate change, the fracking boom is leading to the rapid replacement of coal with natural gas, which is generally a good thing for CO2 emissions, though leaking methane mitigates the benefit to an unceratin extent.