Investing in oil and gas exploration has increased dramatically over last few years as prices and demand have skyrocketed. Unfortunately, inflation has been responsible for a significant portion of the spending. The costs of exploration have increased so much that it looks like any drop in prices that would result from increased supply may not materialize. A good summary can be read here.
Regardless of the extent of new supply alternatives need to be sought. Biofuels, hydrogen, electric, solar, wind and others will need to increase in use to actually reduce the demand for oil and gas. If that can happen, then a simple interpretation of economics would mean that no additional exploration would be profitable. This would help reduce environmental degradation from exploration and minimize greenhouse gases and the impact of climate change.
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