Hacker News new | ask | show | jobs
by CydeWeys 2278 days ago
So fracking stops in the US. Win-win-win?
3 comments

Someone (Matt Levine??) on Bloomberg said that "Russia and Saudi Arabia seem to have accepted that periodically bankrupting US fracking operations is a cost of business". Periodically - because US oil extraction is done by many firms in a country with strong bankruptcy law, and after 2 or 3 years SA and RU will stop dumping, prices will rise, and they'll spring right up again (barring some drastic change in world oil consumption.) So it's more like Don'tlose-don'tlose-losetemporarily.
It's only a win after the switch to EVs. Before that you are going to need every drop of that oil.
> Before that you are going to need every drop of that oil.

No, you’re not. You want to fundamentally damage oil production economics to make oil as expensive as possible, to speed the uptake of EVs.

Cheap oil slows down the electrification of transportation. We don’t want cheap oil. We want this price war to cause a spike in oil prices causing pain to oil consumers.

Will that reduce the availability of Gas causing more dependency on Coal, though?