Tuesday, July 5, 2022
The Green Market Oracle
  • Climate Change
    • Greenhouse Gas Emissions
    • Biodiversity
    • Wildfires
    • Extreme Weather
  • Energy
    • Fossil Fuels
    • Renewables
  • Politics
    • American Politics
    • Canadian Politics
    • International Politics
  • Social Change
    • Activism
    • Disinformation
    • Education
    • Psychology
    • Gender Equality
  • Business and Economics
    • Leadership
    • Decarbonization
    • Economics
    • Supply Chains
    • Investing
  • Technology
    • Carbon Removal
    • Carbon Capture
    • Transportation
    • Buildings
    • Food
No Result
View All Result
  • Climate Change
    • Greenhouse Gas Emissions
    • Biodiversity
    • Wildfires
    • Extreme Weather
  • Energy
    • Fossil Fuels
    • Renewables
  • Politics
    • American Politics
    • Canadian Politics
    • International Politics
  • Social Change
    • Activism
    • Disinformation
    • Education
    • Psychology
    • Gender Equality
  • Business and Economics
    • Leadership
    • Decarbonization
    • Economics
    • Supply Chains
    • Investing
  • Technology
    • Carbon Removal
    • Carbon Capture
    • Transportation
    • Buildings
    • Food
No Result
View All Result
The Green Market Oracle
No Result
View All Result
Home Other

Oil is a Bad Investment

by Richard Matthews
January 21, 2016
in Other
0

Iinvestors can no longer avoid the realization that their fossil fuel holdings are fraught with risks. While there are many factors at play, the 18 month slide and low price forecasts combine to make the point that investing in oil makes no economic sense.

In the short term China’s slowing growth and the glut of oil are driving down the price. The situation will be exacerbated by the lifting of sanctions allowing Iran to sell its oil. High production and lower than expected demand mean that oil prices will continue to fall well into 2016.


Oil has fallen a long way, it has lost 80 percent of its value compared to its high in January 2014 when it was more than $110 a barrel (bbl). When oil slipped below $60/bbl a number of intensive drilling operations from the Arctic to the Canadian tar sands and American shale oil ceased to be profitable. These price declines reduced production but not enough to stop oil’s plummeting trajectory.

At the end of 2015 the price oil plunged below $40/bbl. As the new year dawned oil prices continued to slide, they even briefly slipped below $30/bbl. US oil prices fell to $26.55/bbl on January 20th. We have not seen oil prices this low in 14 years and we have not seen an 18th month long slide in more than 60 years. 

According to the Financial Forecast Center the outlook for the next six months suggest that oil will continue to decline, falling to around $25/bbl by the start of the summer.

Although the market will eventually balance out supply and demand, the longer term outlook is still challenging for oil prices. The eia predicts that oil prices could fall to as low as $20/bbl in 2017. The Telegraph reports that some are predicting that oil could go as low as $10/bbl.

Looking even further out the situation for oil may become even more difficult. The COP21 deal sent a powerful message to the markets. The era of oil is coming to an end and as we gear up for the implementation date of the deal in 2020 there will be unprecedented downward pressure on oil prices.

Related Articles
Diminishing Profits Signal the Beginning of the End of Oil
Falling oil Prices Make Fossil Fuels a High Risk Investment
Financial Losses Associated with Fossil Fuels
Low Oil Prices Offer an Opportunity to Combat Climate Change
The Upside to Low Oil Prices
Climate Pros and Cons of Low Oil Prices

ShareTweetShare
Previous Post

Climate Focus at The World Economic Forum in Davos

Next Post

Leading Climate Focused and Sustainable Companies of 2015

Related Posts

Seasons Greetings from the Green Market Oracle

by Richard Matthews
December 24, 2021
0

American Courts are Defending Democracy and the Environment

by Richard Matthews
December 14, 2020
0

Despite unprecedented challenges, America's legal system has held. In recent weeks the courts have repeatedly defended democracy and in the last four years they have overturned a wide range of environmental...

Environmental Plebiscites: Municipal Referendums and State Ballot Initiatives

by Richard Matthews
November 12, 2020
0

The November 3rd election not only elected an environmentally responsible president it also gave Americans a chance to vote on environmental issues in five state ballots and two city referendums. Americans ...

Next Post

Leading Climate Focused and Sustainable Companies of 2015

Leave a Reply Cancel reply

Follow Us

  • Facebook
  • Twitter
  • Email
  • LinkedIn
  • Reddit
  • SoundCloud

Subscribe to the Blog

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Energy

Nuclear Energy Versus Fossil Fuels

by Richard Matthews
July 5, 2022
0

Nuclear power is garnering an increasing amount of attention as a climate-friendly energy alternative to fossil fuels which are greenhouse...

Read more
different types of economic systems assessed by sustainable development goals

Types of Economies and their Implications for Sustainability

June 28, 2022
The facts about Nuclear Energy reveal that it is safe and clean but it is not renewable

Fact Check Reveals Nuclear Energy is Safe and Clean but not Renewable

June 13, 2022

Environmental Implications of Three Types of Economies: Brown, Blue and Green

June 3, 2022

Types of Nuclear Energy: Where We Were and Where We are Today

May 31, 2022
  • About
  • Climate Change
  • Energy
  • Business and Economics
  • Politics
  • Technology
  • Social Change
  • Events
  • Other

© 2021 Copyright The Green Market Oracle.

No Result
View All Result
  • Business and Economics
    • Leadership
    • Supply Chains
  • Economics
  • Energy
    • Fossil Fuels
    • Renewables
  • Climate Change
    • Greenhouse Gas Emissions
    • Biodiversity
    • Extreme Weather
    • Wildfires
  • Investing
  • Politics
    • American Politics
    • Canadian Politics
    • International Politics
  • Technology
    • Buildings
    • Carbon Capture
    • Food
    • Transportation
  • Social Change
    • Education
    • Activism
    • Psychology

© 2021 Copyright The Green Market Oracle.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In