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Monday, June 19th, 2017

What Happens When The Oil Economy Collapses?

Author:     Zachary Shahan
Source:     cleantechnica
Publication Date:     June 17th, 2017
 Link: What Happens When The Oil Economy Collapses?
Stephan:   What makes this assessment important is less whether it is accurate, although much of it is, than that this subject  is beginning to be seriously discussed at all. I pick up trends like this when I begin to see articles like this one popping up in specialty publications and websites. Then the topic will start showing up in larger publications and websites. The Trump Administration is committed to carbon energy, but it is out of synch with the rest of the world, and much of America, so the effect of Trump's policies will not be to continue carbon, but to diminish the standing of the United States. The world is moving out of carbon; there is nothing more powerful than collective intention. We voted a psychopathic child into office and we are being left behind.

Credit: Tesla

The question is simple and stark, but there will be a gradient of effects, and side-effects, and after-effects. As the oil economy collapses, the world will change. And it will change a great deal.

Let’s start with some of the basics.

Oil company values — which are currently topping the charts — will collapse. That means that certain investors (many investors) will “lose money,” or see their net worth drop. To put this into a little more perspective, we highlighted recently that Tesla [TSLA] has passed the US “Big 3” automakers in market cap, currently sitting at $60.15 billion (compared to GM at $51.73 billion and Ford at $44.76 billion). Meanwhile, Exxon’s market cap sits at $354.59 billion, Chevron’s market cap is $204.76 billion, and Saudi Aramco’s expected to be valued at $1–10 trillion.

Some of our top commenters have made it clear — the oil bubble could collapse at any moment. What’s holding it together is the prospect of growth, but large portions of the investment community should soon realize that cost-competitive, more convenient, and more […]

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1 Comment

  1. Mark R on Tuesday, June 20, 2017 at 10:30 pm

    What Happens When The Oil Economy Collapses? I say we hold a massive solar PV and solar thermal installation party in every state and town!! ;-p