Without question, this was the most interesting tweet so far today, and the replies to that tweet.
First, the initial tweet and the thread: WoodMac implies EVs will kill oil demand. EVs will send oil to $10/bbl.
Then the reply: "Even assuming the 70% figure is true, surely Wood Mac understands that this is not how oil markets work, right? The marginal cost of production, even of just 70 million bbs per day of oil in 30 years, will undoubtedly be "much" higher than $10.
Again, this gets back to how oil is priced. Oil is priced on the cost of the "last" bbl produced, note the legacy oil.
Graphic:
More from the thread:
"Not to mention that even if oil demand was to drop 30% by 2050 the world would still need to develop ~ 50 million bbls per day of new oil supply over the next 30 years -- roughly four Saudi Arabia's wroth of new production would be needed."
"Do you really think that happens at $10/bbl." s/gmafb.
More:
"Remember: the majority of the Wood Mac reports are compiled by 35-year-old indoctrinated kids with no real world experience having graduated from hard-left universities."
"Wood is grinding hard for those renewable dollars."
JPM apparently is going to invest $2.7 trillion dollars in renewable energy research. Or something like that.
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