OPEC Oil Outlook

As discussed in this article by Ambrose Evans-Pritchard in the Telegraph, the “OPEC Oil Outlook” recently published assumes that neither global warming regulation nor electric vehicles will influence oil demand much until 2040.

They recommend that firing coal for generating electricity should be reduced to deal with global warming.

In other words, they do agree with the need to leave fossil fuel in the ground, as long as oil is not concerned.

They also think that electrical vehicles will stay unattractive over the coming decades, citing high battery cost and range anxiety.

Maybe they never heard of Elon Musk or of Tesla.

As a response to global warming, this does not impress me as a sincere effort.

I also certainly hope they are wrong on electrical vehicles. It is impossible to leave oil in the ground if transport doesn’t change fast to batteries.

Anyway, with that outlook there is not much hope they will change their ways from business as usual.

The impulse for change needs to come from elsewhere.

Decide on a world wide mining schedule for the remaining oil. Enforce it by issuing production rights on the Bitcoin blockchain.

Then watch OPEC rejoice over the higher oil prices resulting from responsible use of this resource.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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