Debate On “Peak Cheap Oil”: Fact Or Overblown Fear?

What is cheap oil? Oil from Saudi Arabia stopped being truly cheap some time ago as most reserves today need extensive EOR which costs money. How much is unclear as Saudi Aramco is about as transparent about it as a 10-foot cinder block. Shale oil is usually not cheap oil but it’s also sweet and light and currently being produced in the biggest market on Earth. Costs for logistics and storage are very low here. No risk of tankers being captured as well. There is no golden bullet. Every source has to be held against the technical challenges, the geopolitical situation, and its unique economics. Ultra-cheap oil might not be a thing anymore – but if we consider wind and solar to be worthwhile options, cheap oil very much is still a thing. 

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