Yep, you read that right, end all oil and gas production by 2040.
“The proposed legislation is part of President Emmanuel Macron’s broader plan to take the lead against climate change, after U.S. counterpart Donald Trump ditched the landmark Paris agreement to fight global warming.”
Now France doesn’t currently produce a whole lot of oil, but Oil revenues are worth
“as much as 300 million euros ($358 million) in annual revenue, and accounts for as many as 5,000 jobs, directly and indirectly”
Of course France won’t stop requiring fuel, power or petroleum-based products so this plan will have Zero impact on global warming and CO2 emissions and is therefore complete folly.
But they will be able to feel morally superior to the rest of the Western World for taking this decision – perhaps with that warm fuzzy feeling they can turn down their heating, then they might actually make a difference to global warming!
Who would have thought that a lack of investment would lead to a massive reduction in the amount of oil discovered in the past couple of years?
Explorers in 2015 discovered only about a tenth as much oil as they have annually on average since 1960. This year, they’ll probably find even less, spurring new fears about their ability to meet future demand.
Just one tenth of the amount that has been discovered on average over the past 55 years.
Why is this significant? Well, because without replacing the reserves that are being used up we will find ourselves in a situation where oil becomes limited and prices will rise – hugely.
Not this year, or next, but in the coming 5 to 10 years. And this isn’t just a small reduction in the amount being discovered;
Just 2.7 Bbbl [billion barrels] of new supply was discovered in 2015, the smallest amount since 1947 . . . This year, drillers found just 736 MMbbl [million barrels] of conventional crude as of the end of last month.
New discoveries from conventional drilling, meanwhile, are at rock bottom, there will definitely be a strong impact on oil and gas supply, and especially oil.
For big business, big oil and countries like Saudi Arabia that can ride out the storm of low oil prices the future prospects look very good. Don’t be surprised to see oil at $200 per barrel within 10 years – nearly double any previous record high prices.
For smaller companies, individual employees and shorter-term investors the past couple of years have been pretty awful and look set to remain stagnant for the remainder of 2016 at least.