Crude Oil May Fall With NOK on Coronavirus, Key Economic Data | key economic data ENDPARAM
If crude oil prices fall the way they did when the virus struck China, how can we expect to cut our consumption? If oil production continues at a high rate (and there is no sign of that). That means unless we find another way to produce energy at a reasonable cost, oil will continue to run at high costs.
As a bottom line, it is important to understand what is going on. Not only can we no longer “save” oil; we cannot rely on alternative sources of energy either. Our transportation systems have failed us as they fail us now, so will transportation systems fail us next? There are simply too much pollution in the air and too many cars on the road, not to mention all the vehicles needing gasoline.
So I suggest the bottom line is that we find an alternative source of energy and cut back on gasoline consumption. It will work and we need to get on with it.
Biocrude is an alternative to crude oil in that it is 100% renewable, unlike the oil. It is from the same grass used to grow wheat. It has been compared to the herbicide Roundup, which gives weeds a more aggressive capability to sprout again after harvesting. It is also different because the enzymes used are different. It can easily be taken up by plants as they feed on it, thus eliminating the need for extracting it from wells.
If oil price drops, then oil supply lines will become disrupted, creating shortages. The global economy could experience large-scale shortages. Because of the billions of vehicles that use gasoline, then shortages can cause severe problems for the automobile industry.
The good news is that there are lots of vehicles on the road that require gas. These vehicles consume enough fuel that they will not be too affected by shortages. This problem will be in many developing countries, where cars are very expensive and people are used to getting everything they need from other countries. Also, the transportation system has a very good track record of providing all of its needs, even in times of stress.
The best way to prepare for disruptions caused by Crude Oil is to become fully aware of all the risks and opportunities. Do your homework, think about what is happening in the world and how it will affect you and your family, and prepare yourself to take whatever steps are necessary.
There are three different scenarios that need to be considered. First, the major disruption could occur at the global level, causing even greater problems at the local level. Oil supply and demand could be disrupted globally. Or the disruption could occur locally.
For example, when oil demand does not meet supply, and prices rise, some of the other oil producing countries could suddenly find themselves with an excess of oil. There could be shortages for many hours.
Crude Oil may fall with the virus, but it will rise once we start changing our lives and the world to match the new paradigm of efficiency and less consumption. Let’s make this change now, before we completely lose the control of the planet.