I just love it when the acolytes and gurus of Global Monopoly Capitalism talk dirty. It saves having to wade through the voluminous amount of nonsense spouted by elected governments and their imbecile Ministers. Ambrose Evans-Pritchard from this morning’s Daily,we really know what’s happening Telegraph summarises the systems impending existential crisis succinctly.
The International Energy Agency in Paris says global investment in fossil fuel supply rose from $400bn to $900bn during the boom from 2000 and 2008, doubling in real terms. It has since levelled off, reaching $950bn last year. The returns have been meagre. Not a single large oil project has come on stream at a break-even cost below $80 a barrel for almost three years.
A study by Carbon Tracker said companies are committing $1.1 trillion over the next decade to projects requiring prices above $95 to make money. Some of the Arctic and deepwater projects have a break-even cost near $120. “The oil majors like Shell are having to replace cheap legacy reserves with new barrels from much more difficult places,” said Mark Lewis from Kepler Cheuvreux.
Schadenfreude just got better !