So is that it for oil?

So is that it for oil?

Postby TylerM4 » Nov 25th, 2018, 10:14 am

The barrel remains low. Alberta is crying foul and blaming pipelines/transport for their problems.

Meanwhile, electric cars/vehicles are really coming in fast. BC recently announced a plan for all new vehicles to be electric by 2040. Lots of similar stories from other jurisdictions.

I'm going to go out on a limb here and say that investing in oil is a bad idea. I suspect that actual investors have already come to that conclusion which is the real reason that the barrel remains low. Now don't get me wrong, we're a long way away from not being dependent on oil. BUT, it's no longer clear that our dependency is increasing. My best guess: In about 10 years we'll experience our 1st year where globally we consumed less oil than the previous year.

Long story short - It's looking like oil is no longer a good investment. Do the folks in Alberta realize this? Yes, oil is still needed but without investors and speculators getting in the mix to drive up the costs, prices are likely to remain closer to true market value rather than seeing huge markups due to the investing, speculation, and trading. Lots of people thinking "now's the time to buy in while it's low" - I think it'll be a long long time before it's ever high again. Not until demand starts to exceed supply - and with demand expected to level off and start dropping that could take a long time.

In no way do I think I'm an expert on the topic/industry. Just my personal thoughts/feelings. What do others have to say?

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Re: So is that it for oil?

Postby Even Steven » Nov 25th, 2018, 10:43 am

Don't think oil is going anywhere. Oil will be needed for decades and it's still a good investment.

Oil in Canada though isn't - thanks to our ever bright gov't.
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Re: So is that it for oil?

Postby vegas1500 » Nov 25th, 2018, 11:07 am

BC recently announced a plan for all new vehicles to be electric by 2040.


Didn’t read the whole article but I believe this isn’t quite true. They stated “0 emissions” by 2040. The emissions coming from a modern vehicle are exceptionally clean, I believe they will work on technology to get to zero in conjunction with electric transportation.
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Re: So is that it for oil?

Postby ol goat » Nov 25th, 2018, 12:49 pm

So when they sell all these EV's, Where is the money coming to pay for all the rebates ?
3000-5000$ currently is the rebates depending on the system Hybrid or fully electric.

Where is the money coming from in the way of lost tax revenue from the lost gas/diesel sales?
Where is the tax revenue from highway taxes coming from to maintain and build new roads/ Infrastructure?

The only way for the government to make up this shortfall is to jack up the taxes on everything else.
What if I don't want an EV as it's not feasible for myself and family. I see the situation where i'm left to subside by way of extra taxes these EV freeloaders

Like when propane conversions was all the rage , rebates where to be had and no road tax. That all changed when there was enough converted. Will that be the same again?
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Re: So is that it for oil?

Postby OKkayak » Nov 25th, 2018, 1:43 pm

ol goat wrote:So when they sell all these EV's, Where is the money coming to pay for all the rebates ?
3000-5000$ currently is the rebates depending on the system Hybrid or fully electric.

Pre-determined set of funding, once that money has run out then there are no more rebates, also I believe the program only runs until 2020 then the rebates stop as well.
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