Oil exploration and production companies have had a good run with their upstream business. Crude has hovered around 100$/barrel for last several year, much greater than the 30$/barrel during 2002 2003. The sustained performance of crude in the face of the natural gas boom owes a lot to the penetration of automobile s among the growing middle class in developing nations.
Of late it’s getting more expensive to drill for oil as the low hanging fruit is gone. On top of it, studies have shown that if 100% of the crude oil assets that the big boys own underground are utilized that will send our planet into a heating spiral caused by greenhouse gases.
So here is a conundrum for them oil companies. Should they simply pare down their assets and get into clean energy business
.And for investors - should they bail in light of above conundrum.
And for rest of us. Should we consume less, lower demand and push these big boys gently off the cliff.
And here is that unnecessary word - discuss.