SOOooo does it mean that my golf Beetle's full tank will soon be free ?
Good Morning / Evening Steemy people,
A Goldman Sachs analyst said oil prices could fall bellow $40 the barrel.
What's the real reason of oil's price decline.. Elon, is that you ?
The Goldman sachs' analyst said that the world's oil production is rising and US's oil consumption is declining. Because of the US weight in the world's oil consumption, The offer is now higher than the demand so the price is dropping.
We could also add that mankind is starting to use more and more renewerable energy like wind power, hydro power or solar energy (Thanks Elon ). The rise of the renewable energy consumption could also impact the oil's demand and so oil's price. Let's look at figures.
This is world's energy consumption over 50 years :
Source : wikipedia / BP.com
As you can see renewable energy represents only a small part of the world's energy consumption. Petroleum is by far the main world's power source. The adoption of renewable energy can't impact the oil price with this magnitude.
What's the real reason of oil's price decline ?
Oil price is determined (among other things) by the supply / demand effect, if you have more buyers than sellers the price increases and vice versa. For argument's sake, let's say that demand is more or less the same over time ( which is wrong, a lot of actors could influence oil offer.) and let's say it's the demand which mainly drives the price.
Who is the biggest oil consumer in the world, who could affect the demand ?
Yeep, the US. The oil consumption of this country could impact big time oil's price. Let's see how they get oil :
source : eia.com (The U.S. Energy Information Administration)
Well, that interesting, since 2014 the US are using less petroleum and more natural gas (thanks to shales gas exploitation ).
This shift in the US energy consumption mode could be one of the many reasons of the recent oil drop.
Renewable energy still represents a little share in the world energy consumption but thanks to guys like Elon Musk, S. David Freeman, Nicolas Hulot and others, renewable energy could one day be our main energy and hopefully oil price will be bellow $20.
I'd like to finish this article with a positive note : In the US, renewable energies are going to exceed nuclear power.
Thanks for reading this post! if you liked it you can follow me here https://steemit.com/@abou
Ps : Elon if you read this, call me I need to speak with you, I've got some ideas.
Excellent as usual ! I wonder if the US will ever really change its oil consumption ...
thanks Tiphaine, of course they will, the world will : Fossil fuels are limited :)
Thanks for sharing
I am waiting for the day
it could take a looong time to get there !
I do think Elon has something to do with it. The recent arrival of the Tesla Model 3, plus the announcement of Volvo creating only hybird or electric vehicles in the near future is a start.
The fact that electricity produced by solar is getting so cheap that the next hurdle will be widespread battery deployment.
On average americans used less electricity last year than the year before, too.
The push towards energy efficiency has sure helped that.
Keep the great posts and the great news coming.
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