4 February 2017 • 1:53pm
Few chief executives are ever willingly prepared to put their companies into run-off. To do so seems an admission of failure. Yet is this not the best strategy for the oil giants BP, Shell, ExxonMobil et al? I ask this question not just for its shock value, but because it is the logical conclusion to draw from BP’s latest “Energy Outlook”.
This highlights an increasingly self-evident fact; that despite one time predictions of “peak oil” and other such nonsense, the world is in fact overflowing with oil and other fossil fuel reserves. Today’s known resources dwarf likely consumption out to 2050 and beyond.
As a commodity product, oil has to date been quite unusual in that it accommodates both low and high-cost producers. This is largely because supply is deliberately constrained by OPEC and others with an interest in eking out the resource’s income stream for as long as possible.