They say a picture is worth a thousand words. The thousand words of the lead image have to do with how differently Democrats and Republicans in Congress view the relationship of the current coronavirus contagion and the other great existential threat to the nation — climate change.
If you were an oil futures trader wanting to unload a May 1 contract on Monday, April 20, a barrel of oil was worth $-37. That’s right, traders were, in effect, willing to pay someone—anyone—to take ownership of a commodity that powers modern industrial society, and has suddenly become too abundant.
The price of U.S. crude oil collapse to below zero for the first time on record, falling to negative-$37 per barrel and forcing oil producers to pay buyers to take the product off their hands.
The renewable energy industry, which until recently was projected to enjoy rapid growth, has run into stiff headwinds as a result of three era-defining events: the COVID-19 pandemic, the resulting global financial contraction and a collapse in oil prices. These are interrelated, mutually reinforcing events.
While most Canadians have been worrying about the COVID-19 pandemic, the drama of collapsing oil prices has upended markets and shaken the budgets of Canada’s petro-dependent provinces: Newfoundland, Saskatchewan, Alberta and B.C.
The global oil price has crashed, mainly as a result of the coronavirus (COVID-19), and earlier in the week hit lows not seen for two decades, of around $20 a barrel for WTI and $24 for Brent crude.
Tverberg claims that added debt cannot seem to provide oil and other energy sources at cheap enough prices for the economy to flourish.
What the current oil price slump means for world oil supply is starting to emerge. "Layoffs," "cutbacks," "delays," and "cancellations" are words one sees in headlines concerning the oil industry every day. That can only mean one thing in the long run: less supply later on than would otherwise have been the case.
The price of a barrel of oil has been dropping steadily due to decreasing demand and a glut of oil on the market, thanks in large part to the fracking boom in the U.S.