The fossil fuel companies keep fighting for life as cleaner energy sources slowly climb upwards. They continue to pump money into politician’s coffers in increasingly desperate attempts to stay antiquated. In doing so they have continually put off investing in other sources of energy production.
Again and again they fight against the inevitable. Their protectionism, their conservatism may well be their downfall.
We already have the infrastructure in place for high voltage long distance transmission of DC currents.
But now they are facing more than just the advancements of technology and an unlimited and free source of energy, they are now facing an enemy within. OPEC.
Saudi Arabia is willing to let crude fall to a low of $20 a barrel. That is going to cost investors a ton of money. That loss leads to a selloff that leads to more losses. The end result is a halt to research and development.
The question seemingly floating around is why would OPEC purposely take this hit? I have a theory not connected to energy per se. We think in terms of western capitalism. The middle east doesn’t. Religion, power, money and politics are intertwined.
The biggest threat in the middle east is ISIS. ISIS funds itself by selling oil from oil fields it has captured. As the prices drop so does their power, ISIS is mostly a mercenary army and they have to be paid or they stop fighting. Why should the Saudi’s fight on the ground when they can starve the enemy?
Big Oil and they old way of doing business doesn’t quite mesh with this new global economy. We really do have to change the way we think.