The collapse of Big Oil: How the industry priced itself into oblivion

Many reasons have been provided for the dramatic plunge in the price of oil to about $60 per barrel (nearly half of what it was a year ago): slowing demand due to global economic stagnation; overproduction at shale fields in the United States; the decision of the Saudis and other Middle Eastern OPEC producers to maintain output at current levels (presumably to punish higher-cost producers in the U.S. and elsewhere); and the increased value of the dollar relative to other currencies. There is, however, one reason that’s not being discussed, and yet it could be the most important of all: the complete collapse of Big Oil’s production-maximizing business model.

Read more

Donate Volunteer Join

Connect with Us

Links

Latest California News

Officials in Oakland, California, effectively ended proposals to open a new coal export terminal by voting to ban the transport and storage of the fossil...

Oil corporations have intensified their push to make the San Francisco Bay Area and other areas of the West Coast into international hubs for refining...

In a major victory for solar power companies and their customers, California regulators voted to preserve an incentive program that has fueled the dramatic growth...

It was widely reported last week that the public relations and lobbying blitz funded by the major oil companies succeeded in toppling one of Jerry...

As Western wildfires follow the worst drought in modern history, the impacts of global warming have never been more stark. And as electric cars, LED...