So much effort and innovation has been directed towards renewable resources like energy, wind, solar, geothermal, hydroelectric, and biomass to preserve our climate and health. That is until it became unprofitable. So it seems that industry is caving in to the “bottom line” rather than continuing full efforts towards saving planet Earth from impending disaster, if not for the next generation, then one or two generations beyond. Corporate profits will win out.
It looks like the Paris Climate Deal might be in danger as long as oil prices continue at their low price pace from $115/ barrel in August of 2014 to the sub-$30 price today. Utilities plans to move towards renewables instead of coal, oil and natural gas will certainly be affected. Gas power plants previously closed down are now being re-opened as a source of low-carbon energy.
Wall Street is very concerned and China’s financial problems and plummeting stock market have compounded the financial crisis. Terry Sandven, chief equity strategist at U.S. Bank Wealth Management commented, “Oil needs to stabilize. It seems misguided to conclude that equity prices will reverse course and trend upwards when the price of crude continues to trend lower.”
I don’t know about you, but I am seeing the climate change around the globe like never before in my lifetime. I’m no expert, but maybe some of this is due to the global warming and ice caps beginning to melt, etc.
On the bright side, low oil prices should help deter new investments in high-cost oil extraction, like those in the Arctic and the Canadian tar sands. It should also reduce fracking and tight oil (“shale oil”) production projects. All costly as well as harmful to our environment.
But let’s look at the opposing view just to balance out my negative view. I still think that greed and profitability will win out and at least slow down renewable energy advances. The best scenario is that oil prices will probably rise again and this will only be a bump in the road for the advancement of alternative energy.
What do you think? Please share your thoughts with our audience.