eventually
Yeah, but I think you might be waiting longer than you imagine.
There might be a long tail of barely profitable wells with low output, but I suspect the vast majority of current production can sustain a significant reduction in retail price and still be more profitable than simply capping the well.
Every person that switches to an EV increases the demand for electricity and reduces the demand for fuel.
Fuel prices halved during covid when everyone stayed home.
All the infrastructure is in place, the fuel needs to be sold.
Reduced demand will only reduce production of fuel from more expensive wells, like where the oil is more difficult to reach.
Do you think it will work that way?
The more people switch to EVs the cheaper fuel will be, which incentivised people to drive ICE vehicles.
Although you’re probably aware, there are geo political implications as well.
Over the last decade China has taken control of the Lithium industry.
Anything we can do to avoid being forced to buy their stuff, honestly.
Yeah, I like to throw bottles of lotion away when they’re half full because I feel compelled to fulfil the perception that my generation is wasteful.