No One Is Buying Canada’s Oil: A Preview Of The Near Future New Normal

Two weeks ago, I published an article outlining why the oil and gas sector was the primary driver of economic losses in the Dow Jones Industrial Index due to the coronavirus. The global economy’s dependence on products that are changing the climate is inherently economically risky. Oil and gas are increasingly risky, not only as a source of energy, but because the industry is a contagion vector as well. Athabasca Alberta oils sands from space now and recently. Image courtesy NASA But that’s far from the entire story. Even within the fragile fossil fuel industry there are winners and losers, and the ones winning and losing today are exactly the ones who will be winning and losing in 2030 and 2040 as more troughs and fewer peaks emerge as the world electrifies. Russia and Saudi Arabia, both very cheap producers of vast amounts of much lighter oil than Canada’s, are in a price war. They are going to kill the most expensive producers. They know that at the end of the age of oil we will still have lots of oil, just as the stone age didn’t end due to a shortage of stones. That’s been multiply attributed, but […]

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