For an investment in oil and gas , the strategic perspective is fundamentally relevant on behalf of me . it’s therefore important to watch the event of the planet population, the worldwide energy demand and alternative staple sources. For this reason, i might wish to check out these raw materials from a somewhat broader perspective.
The term “stranded assets” has become common among major investors . This now also includes oil and gas. These investors believe that fossil fuels are of little or no value because they will not be monetized. global climate change and therefore the atmospheric phenomenon make it impossible to extract all of the raw materials that our planet stores. Otherwise the planet climate would perish.
Inexpensive and straightforward to extract petroleum has already been exhausted in many places. there’s hardly any oil left in deposits that are ashore , on the brink of the surface and where the pressure is high enough that it initially gushes out of the well on its own.
The petroleum now has got to be extracted more and more deeply, i.e. below the ocean floor. Gas is pipelined or liquefied from remote locations then transported with LNG (Liquiefied Natural Gas) tankers. this is often a way harder task for production engineers because it doesn’t keep the assembly costs cheap.
Alternatives to grease and gas are spreading more and more in developed countries. wind generation and other renewable energies are getting more and more economical and may partially displace fossil fuels. Electric vehicles are on the increase and are likely to be the longer term .
With this predicted availability of petroleum , one must not forget that, consistent with the study, around 448 billion plenty of resources should even be added. These are proven or geologically possible oil deposits that are known but cannot yet be extracted profitably with today’s technology.
In the previous study, this value was 456 billion tons. So oil are often available to us for a way longer time, because between the 2 studies the economically feasible amount of oil was increased by 15%.
Nobody knows how the costs for oil and gas will develop within the future. But in contrast to the volatile price, global oil consumption is growing continuously by around 2 percent per annum .
The industrialized countries are increasingly developing alternative sorts of energy, but the emerging countries still have tons of catching up to try to to and are still almost entirely hooked in to oil and gas . consistent with BP , 4/5 of the present increase in global energy demand is thanks to emerging and developing countries. This hunger for energy also will decrease at some point, but I still believe that the large needs of China and India alone can’t be covered so quickly by alternative energies.
Even if oil and gas production becomes harder overall, technical innovations and more efficient processes still advance. With the assistance of improved methods, existing oil fields are going to be ready to produce longer, more environmentally friendly and more energy-efficient.
One day, however, it’ll be more economical to go away the remaining oil within the crust rather than extracting it. Until then, however, automation and digitization will help make sure that oil and gas will remain in demand as raw materials within the decades to return .
Siemens , for instance , offers software solutions with which teams from oil processing plants can already train virtual missions today, albeit their future workplace – the oil rig – has not even been built. Such measures cause increasing empirical values and to avoiding errors. All of this protects money and ensures greater efficiency.
Even if the share of oil and gas in total energy consumption will decrease, in absolute terms humanity will probably use more oil and gas per annum thanks to the expansion of the planet population . for several years to return we’ll need everything we’ve – including oil and gas
Oil is especially used as fuel and for heating. albeit alternatives like electric cars, heat pumps or wood pellet heating still spread, oil is in additional everyday products than you think that . Many chemical substances are obtained from petroleum . they’re hidden in window frames, in tubes of the many medical devices, packaging made from Styrofoam, watering cans, television housings, buckets, Tupperware boxes, vacuum cleaners, upholstered furniture, mattresses and far more.
I really appreciate his expertise and his attitude and that i also accept as true with Christoph here. This reasoning is one among the explanations why I don’t invest directly within the raw materials oil and gas. it’s also difficult to place an oil barrel within the depot. I like better to invest in stocks of companies that make their money from commodities like oil and gas.
A staple company is essentially , but not solely, hooked in to the staple price. It are often done through your own strategic measures like through Lowering costs or Diversification of income,Take influence and achieve a better return than the inflation adjustment. additionally , a good dividend is usually paid during this industry
A low oil price is both a challenge and a chance for the refining industry . Structurally well-positioned companies can further strengthen their market position albeit prices recover. Until then, it’s important to consider reducing costs. this may be the large detail that matters.
Given the prospect that the oil age won’t continue forever, the question arises on which companies can still achieve good results under such conditions. the required adjustments on the great distance there mean promising business opportunities for all those that have the courage to innovate and dare to develop new methods of extracting and using oil and gas .