Just to recap, one of the largest oil companies in the world just announced its oil production is in decline, not that nobody wants its product, not that it is buying up competitor's resources, but that its oil production has peaked:
Shell said its oil production has now peaked and will decline by up to 2% each year, with “traditional fuel” output expected to fall 55% by the end of this decade.
This ain't some boutique producer
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aadbrd wrote:Where is the declining resource and higher price regime coming from? We don't see it reflected in your OP, which is about peak oil demand rather than supply.
It says nothing about demand: zip. The very first line as well as the title says "production has now peaked" — how much clearer can it be? The hook is "decarbonization" with buzzwords like
capture, biofuel, hydrogen. value over volume. This is tantamount to Marlboros volunteering to transitioning to chewing gum.
All I can think is they're setting around thanking god for GW because it gives them cover. Call me a cynic but I'm fairly sure this is not out of some environmental consciousness awakening.
Adam wrote:Tony Seba
You can call me a party pooper too, because I seriously doubt 80% of cars in the US are going to disappear in the next 10 years. He may have
grabbed a headline back when, predicting we'll all Uber and Hyperloop, but he was projecting a trendline from the high price era '06-'14. In the US at least, people like their freedom. After the historically high prices vehicles and miles traveled fell, no surprise. But as soon as fuel prices collapsed driving went right back up. Uber is great when my car is broke down, though.
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Peak demand has been greatly exaggerated. Not surprisingly by the same people who repeat, endlessly: "yeahbut PO was forecast in 1732!"
Demand was still climbing right up to the lockdowns...
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Shell is making a really smart marketing move if you ask me. It is perfect timing with the demand collapse from the plague giving cover and Biden coming back strong against carbon. To use
decarbonization as cover for what seems inevitable decline is ballsy, remember
Beyond Petroleum and the freakout it created here? BP was as surprised by LTO as anyone, LOL. This is along the same lines except no between the lines interpretation is needed, you do have to read the lines though.
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Shell website:
https://www.shell.com/media/news-and-me ... ategy.htmlSome other stories:
https://www.ft.com/content/2aed103b-6d1 ... de2b928de9https://apnews.com/article/shell-plans- ... 7847274395