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Page added on September 1, 2020

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Is Big Oil Doomed To Repeat The Coal Industry’s Mistakes?

Business

Until this year, alarmists proclaiming the end of oil were often dismissed as crackpots or overly optimistic environmentalists. But the spread of the novel coronavirus and its unprecedented disruption of the global economy and many of the stalwart industries at its core has amplified the discussion about life after oil and brought it into the mainstream.  This year’s headlines have been full of oil obituaries, from shale companies falling into bankruptcy like dominoes to think piece after think piece saying goodbye to the oil sector as a whole, from Sierra’s “The End of Oil Is Near” to Vice’s “The End of the Oil Age Is Upon Us.”

And it’s not all sensationalism or overreaction, either. Even Big Oil itself seems to see the writing on the wall, and has been moving swiftly away from oil exploration towards more lucrative ventures now that “Big Oil’s Most Profitable Business Is No Longer Oil.” In Europe especially, Big Oil seems to be accepting the inevitability of an impending global energy transition and is taking the first steps to transform itself into Big Energy.

“Nine years ago, ExxonMobil was the most valuable corporation in the world,” The Houston Chronicle wrote on Friday. “Last week, Dow Jones removed the stock from its industrial index that is supposed to represent the U.S. economy. Exxon’s market capitalization has dropped from $400 billion in 2011 to just $175 billion today, and the oil business is no longer as important to the U.S. economy.”

But Big Oil in the United States has responded very differently to its decline than its European counterpart. Instead of innovating and evolving, the United States’ response seems to be: deny…until you die. “Oil executives talk a lot about how their industry will bounce back after the coronavirus pandemic passes, but the truth is their business is in long-term, secular decline,” writes the Houston Chronicle. “No matter who wins November’s elections, we need to find new businesses to replace the oil and gas industry in Texas to avoid economic decay.”

Lucky(ish) for the oil industry, however, they are not the first energy sector to age out of the United States economy. For a little lesson from history, U.S. oil needs to look no further than the U.S. coal sector. “Old timers like to say the oil business has seen bad times before, and that every bust is followed by a boom. […] Once the price of crude jumps, Texas will be rolling in money again,” continues the Chronicle report.

“You know who used to talk that way? Coal company executives.” And we all know how that story ended.

Also noting a contrast between the U.S. and Europe, the Houston Chronicle writes, “While European oil company CEOs have announced plans to transition from oil to natural gas and eventually to climate-friendlier forms of energy, the American oil industry continues to demand government bailouts and protections. Coal companies did the same, and look where they ended up.”

In this context, recent articles about the shale sector emerging from the pandemic stronger than ever before and $100 barrels of shale oil just on the horizon are disturbingly reminiscent of when chairman and CEO of Peabody Energy Gregory Boyce said in 2011 that coal was about to be bigger than ever and scoffed at the suggestion that natural gas would unseat coal in the U.S. energy mix. “We are at the early stages of a long-term supercycle for global coal demand with hypergrowth being driven by soaring energy needs,” he said in a now laughable quote.

The message here for U.S. oil execs is loud and clear. Those who do not learn from history are doomed to repeat it. It’s time to evolve to meet a changing global energy industry, not dig their heels in–and get left behind.

By Haley Zaremba for Oilprice.com



29 Comments on "Is Big Oil Doomed To Repeat The Coal Industry’s Mistakes?"

  1. makati1 on Tue, 1st Sep 2020 10:59 pm 

    Trump is building a wall, but not the one he promised. He is building one that will isolate 3rd world Amerika from the rest of the world, and that is a good thing.

    I hope the growing terrorist(protest) activities in Amerika force him to close the 800+ bases and bring ALL of the 200,000+ military home to police the corporatocracy.

    GO TRUMP! Take Amerika back to 1920. LOL

  2. ANAL REAPER on Wed, 2nd Sep 2020 9:18 am 

    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

    Haha another retarded ignorant Liberal.

    Gotta love em’!

  3. ANSEL REAPER this is how whitey supertards will be taken out with a brick in baltimore while darkies laugh on Wed, 2nd Sep 2020 10:23 am 

    the idea of laughing while others being assault or killed is very prevalent. i don’t understand the psychology.

    wait until whitey supertards deal with cold calculated muzz. this enemy is fearsome as whitey supertard “the irishman” president saint general flynn “the honest one” said from his experience fighting them

    that’s why they’re hanging the irishman

    please love supremacist muzz more

  4. IPissOnCanadaPoliticians on Wed, 2nd Sep 2020 11:33 am 

    Hi StarvingLion.

    Go look on Youtube what is happening in Australia. Politicians are total morons and useless pieces of shit.

    I will stop writing useful comment on peak oil because of them monitoring my internet connection.

    So fuck Québec and Canada. Stupid pieces of shit.

    That will all for today. Have a nice day sir.

  5. bochen777 on Sun, 6th Sep 2020 3:09 am 

    Defence agency predicts America population will be reduced by 200 million, with a 90% drop in GDP by 2025…

    US dollar will collapse and lose its global reserve status by end of 2020.

    https://metallicman.com/laoban4site/deagel-forecast-for-usa-population-drops-70-by-2025/

    https://modernsurvivalblog.com/current-events/deagel-forecast-for-usa/

    USA will attack China on or before October 15th 2020…..

    https://forum.ascendchina.ch/t/americas-evil-plan-to-nuke-china-as-the-final-solution-to-genocide-all-1-4-billion-chinese-people-on-earth/85

  6. Abraham van Helsing on Sun, 6th Sep 2020 4:22 am 

    “Defence agency predicts America population will be reduced by 200 million, with a 90% drop in GDP by 2025…”

    Dream on, Chinaman. Wtf is “Beagle Intelligence” (registered in France.lol)?

    Your wishful thinking is even more absurd than that of empire dave, who loves to tell himself that the US will be the “last man standing”.

    Never forget, white Americans still have a lot of friends in Europe. All these white Americans will need to do is to declare their allegiance to European Civilization, of which they are a natural part.

    They will.

    Yes China is going to be “bigly”, possible the new #1. But will be more than compensated (“contained”) by a united Europe (incl. Russia) and oversees dominions in North-America. Many if not most white North-Americans will decide that their race & identity is important after all and begin to pee onto the self-serving globalist yid-diversity agitprop.

    https://parisberlinmoscow.wordpress.com/2020/08/25/what-comes-after-the-three-anglo-empires/

  7. JuanP on the moderated side on Sun, 6th Sep 2020 4:42 am 

    Re: Pat Buchanan: America in worst decline since Soviet Unio
    Postby REAL Green » Sun 06 Sep 2020, 04:41:03

    bochen777 wrote:
    Defence agency predicts America population will be reduced by 200 million, with a 90% drop in GDP by 2025…US dollar will collapse and lose its global reserve status by end of 2020…deagel-forecast

    REALGreen wrote:
    “Oh dear the debunked JuanP deagel forecast surfaces again. Move on this is a joke.”

  8. zero juan on Sun, 6th Sep 2020 4:44 am 

    Stupid redundant widdle juan shit:

    bochen777 said Defence agency predicts America population will be…

    bochen777 said Defence agency predicts America population will be…

    bochen777 said Defence agency predicts America population will be…

    bochen777 said Defence agency predicts America population will be…

    bochen777 said Defence agency predicts America population will be…

    Davy said At midnight, I turn into an asshole. And I stay th…

    REAL Green said Mommy says it’s time to put are pijamies on Davy….

  9. Davy on Sun, 6th Sep 2020 4:47 am 

    “parisberlinmoscow what-comes-after-the-three-anglo-empires”

    OH dear cloggo PBM fantasy again. These skumbags won’t let their fantasy failure alone!

  10. Abraham van Helsing on Sun, 6th Sep 2020 5:07 am 

    OH dear cloggo PBM fantasy again. These skumbags won’t let their fantasy failure alone!

    You’re a “skumbag” these days if you refuse to do like white Americans and roll over and die. That is why we initially very well need Bochen777-types, to plow the Anglo-Zionists under, just like the US needed the UK and USSR to plow us continental Europeans under between 1939-1945.

    But that is all history. There is only one skumbag left and that is umpire dave. And he is now facing ruin and he knows it, that is why he fled to his pc-buddies “up-stairs”. Couldn’t happen to a more deserving traitorous punk, traitorous to his own blood.

    More fun from dying Anglosphere:

    https://www.dailymail.co.uk/tvshowbiz/article-8701777/BGT-Fans-left-awe-Diversity-storm-stage-raw-Black-Lives-Matter-performance.html

    “‘I’m trying not to cry!’ Britain’s Got Talent fans are left in awe as Diversity storm the stage with a raw Black Lives Matter-inspired performance”

    Read the Brexiteer reader comments for what white Britain really thinks.

  11. Abraham van Helsing on Sun, 6th Sep 2020 5:22 am 

    Well, don’t blink then!

    https://www.dailymail.co.uk/news/article-8702787/Dominic-Raab-accuses-EU-double-standards-ahead-crunch-talks.html

    “Dominic Raab accuses the EU of ‘double standards’ and warns the UK won’t ‘haggle away’ sovereignty for a trade deal ahead of make-or-break talks – as negotiator Lord Frost vows ‘this time, we won’t blink'”

    That whole fishing episode is just a smoke-screen, the EU uses to maneuver the UK into no-deal. What we really want is not that stupid cod, but Scotland, Ulster, Gibraltar and the City. That’s all. You can keep your fish, provided you can catch it. (Most British fish is caught with hyper-modern continental European trawlers)

    Toodeledokie.

  12. Davy on Sun, 6th Sep 2020 5:36 am 

    “You’re a “skumbag” these days if you refuse to do like white Americans and roll over and die. That is why we initially very well need Bochen777-types, to plow the Anglo-Zionists under, just like the US needed the UK and USSR to plow us continental Europeans under between 1939-1945.”

    LOL, who said I am rolling over and dying. People like me are saying enough and many more are joining in. Wokism is killing itself and has no future. We don’t need the cloggo white racist natzi BS to fight woke racism. We fight it the old fashion way with reason and a backbone.

  13. Abraham van Helsing on Sun, 6th Sep 2020 5:40 am 

    Why is nobody dying from corona anymore, despite increasing number of infections?

    https://www.dailymail.co.uk/health/article-8700927/Why-Covid-death-rates-low-cases-soaring.html

    “The great Covid conundrum: Why are death rates so low when cases are soaring and could Chicken pox provide an answer?”

    The article makes the point that increased social distancing and hygiene measures limits the amount of virus, a person can catch during an infection and that the body is more able to deal with smaller amounts of virus.

    Perhaps.

    I would like to add the hypothesis that the most vulnerable people, vulnerable for corona that is, have already died and that a certain degree of “herd immunity” has meanwhile been achieved.

  14. Abraham van Helsing on Sun, 6th Sep 2020 5:41 am 

    “Wokism is killing itself and has no future.”

    Indeed and it is killing the US with it, just like the corona virus dies if it manages to kill the host.

  15. Davy on Sun, 6th Sep 2020 6:29 am 

    “Indeed and it is killing the US with it, just like the corona virus dies if it manages to kill the host.”

    It is in Europe too, cloggo, you just are in denial. Liberalism came form Europe and is still alive and well. Wokism is a bastardization of the liberal with traits of Marxism. My wife is Italian and liberal. Of course Italians have conservative ways too but I see many liberal traits too. Get a grip, cloggo, racist old white guys like you are not a majority so quit acting like you control the destiny of Europe.

  16. the board on Sun, 6th Sep 2020 6:31 am 

    It is so nice when the lunatic JuanP is not around. We can have intelligent discussions without the childish behavior. We hope he is curled up in bed in depression.

  17. Davy on Sun, 6th Sep 2020 6:47 am 

    “Why We’re Facing The Biggest Election Nightmare In Modern American History No Matter Who Ends Up Winning”
    https://www.zerohedge.com/political/why-were-facing-biggest-election-nightmare-modern-american-history-no-matter-who-ends

    “This is going to be such a disaster, but nobody can do anything about it now. All we can do is watch this slow-motion train wreck play out. One side is going to be bitterly, bitterly disappointed, and they will almost certainly feel like the election was not won legitimately. There is going to be so much anger, and when it explodes it is going to be very frightening to watch. This is already such a dark chapter in American history, and this election is going to take things to an entirely new level. Sadly, after November 2020 nothing in this country will ever be the same again.”

  18. the board on Sun, 6th Sep 2020 7:20 am 

    “Davy said “Why We’re Facing The Biggest Election Night…”

    LOL, I knew I could flush widdle juan from his fetal postion. Fuck face is up doing his ID theft.

  19. Abraham van Helsing on Sun, 6th Sep 2020 8:21 am 

    https://twitter.com/KeithWoodsYT/status/1301760407460347905?

    “It is in Europe too, cloggo, you just are in denial. Liberalism came form Europe and is still alive and well.”

    Not nearly in the idiotic form you present it.

    Europe kicked the Jews out, that’s why we are going to win in the end.
    You put their feet onto your neck, like the good Friday goy that you are. That’s what’s killing you.

  20. Davy on Sun, 6th Sep 2020 9:13 am 

    “Not nearly in the idiotic form you present it.”

    Yea, cloggo, back at you. Here in the flyover of the middle of the country we have next to none of this shit. Even in KC or STL there is only some of this in the city centers. The suburbs and the exurbs are much less touched by this nonsense. There is some of this wokism nonsense in the Universities around here but not much. The primary influence of the radical left and wokism is on the populated coasts and various larger Urban areas throughout the country. Most of the country is not affected by this nonsense. Your comments pretend like it is widespread and overwhelming. You are a fraud, cloggo. You act like you know this country but you don’t.

  21. JuanP on Sun, 6th Sep 2020 9:14 am 

    For the record. I am the real JuanP and I haven’t posted a single comment here since before 9/5. I’ve moved on to greener pastures. I would recommend you all do the same. Reading the comments here or posting something is a complete waste of your lives. This website is fucked beyond redemption. Move on, guys!

  22. the board on Sun, 6th Sep 2020 9:15 am 

    Lunatic, don’t let the door slam you in the ass. Bye bye, Fuck Face!

  23. Davy on Sun, 6th Sep 2020 10:21 am 

    Welcome to hell PPee juan. Think it’s bad now? Wait til November. Hells gonna get a hole lot worse.

    cunt face!

  24. Davy on Sun, 6th Sep 2020 1:19 pm 

    For the record. I am the real delusional davy and I haven’t posted a normal comment here since before 2010. I’ve moved on to REAL GREEN pastures. I would recommend you all do the same. Reading my stupid JuanP sock comments here or posting something is a complete waste of your lives. Ive fucked website beyond redemption. Victory!

  25. the board on Sun, 6th Sep 2020 2:30 pm 

    JuanP on Sun, 6th Sep 2020 1:19 pm

    “For the record. I am the real delusional davy and I haven’t posted a normal comment here since before 2010. I’ve moved on to REAL GREEN pastures. I would recommend you all do the same. Reading my stupid JuanP sock comments here or posting something is a complete waste of your lives. Ive fucked website beyond redemption. Victory!“

    Gawd, we have to agree with you PPee, any delusional Davy comment is your ID theft. Your socks are everywhere except we are exposing them and making you look like the piece of shit you are!

  26. bochen777 on Sun, 6th Sep 2020 2:33 pm 

    ascendchina.ch

  27. France: Macron defends ‘right to blaspheme,’ vows to crack down on ‘Islamic separatism’ on Sun, 6th Sep 2020 2:59 pm 

    everyone please licks supertard fingers like a good muzzie and a muzzie lover
    this is commanded for every muzzie and muzzi lovers

  28. zero juan on Sun, 6th Sep 2020 3:01 pm 

    widdle juan PPee stupidity:

    France: Macron defends ‘right to blaspheme,’ vows to crack down on ‘Islamic separatism’ said everyone please licks supertard fingers like a goo…

    bochen777 said ascendchina.ch

    Mods, please ban Fuck Face

  29. Rik on Mon, 7th Sep 2020 4:32 pm 

    JuanP is nothing but a mentally unstable cunt.

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