First the crashing of the economy, now oil what’s next the rapture, not hardly
In an article titled “Another oil crash is coming, and there may be no recovery” written by Tom Randall for Bloomberg News, it is reported that “In the next two years, Tesla and Chevy plan to start selling electric cars with a range of more than 200 miles priced in the $30,000 range. Ford is investing billions, Volkswagen is investing billions, and Nissan and BMW are investing billions. Nearly every major car maker—as well as Apple and Google—is working on the next generation of plug-in cars. This is a problem for oil markets. OPEC still contends that electric vehicles will make up just 1 percent of global car sales in 2040. Exxon's forecast is similarly dismissive. The oil price crash that started in 2014 was caused by a glut of unwanted oil, as producers started cranking out about 2 million barrels a day more than the market supported. Nobody saw it coming, despite the massively expanding oil fields across North America. The question is: How soon could electric vehicles trigger a similar oil glut by reducing demand by the same 2 million barrels? That's the subject of the first installment of Bloomberg’s new animated web series Sooner Than You Think, which examines some of the biggest transformations in human history that haven’t happened quite yet. Tomorrow, analysts at Bloomberg New Energy Finance will weigh in with a comprehensive analysis of where the electric car industry is headed. Even amid low gasoline prices last year, electric car sales jumped 60 percent worldwide. If that level of growth continues, the crash-triggering benchmark of 2 million barrels of reduced demand could come as early as 2023. That's a crisis. The timing of new technologies is difficult to predict, but it may not be long before it becomes impossible to ignore.
Reading this article you would think that the world is going to come to an end and we all will be called up in the rapture but before you start selling off everything that you think you own, take a few minutes and see things as they are right now. What made OPEC think it would be a good idea to flood the market with the “about 2 million barrels of oil a day more than the market supported”? OPEC does this because it is never worried about losing anything and can gamble as often as it wishes because for one thing, there will always be a need for oil and if many drop out of the ownership of oil, those that remain will truly corner the market. Secondly, do anyone remember that big oil is being subsidized by the U.S. Government already, which could mean bigger subsidies to off-set their loses. Let’s be real, those who have will continue to have and gain more, those who have not will continue to struggle to keep what they got and those who sit back, speculate and collect massive amounts of money to protect and defend those who have will continue to do so. When this article calls what may be coming a crisis, my first and only question is a crisis for whom? Those who already control or assume they control the workings of nations or those who need low gas prices to get back and forth trying to keep what little they have already?
Just like all other things that has come and gone, technology will help to create newer and better ideas but the consumer will be the final judge as to whether or not it grows or goes. Electric cars may be the shining new object catching our attention right now but that will last only until the next shining object appears. If the oil crash does occur, the oil producing countries will have to find another unregulated business to get involved in and with their trillions of dollars in wealth, it will only take a few hours to find something else to invest, corrupt, control and destroy.