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<p>[QUOTE=&quot;justafarmer, post: 2320148, member: 3926&quot;]The World wide glut of oil is not going to dry up soon. </p><p><br /></p><p>Even at $75.00 oil green alternatives are not competitive to oil. To really make in-roads into mainstream energy required a significant carbon tax to artificially inflate cost of carbon. With the price of oil where it is now makes the carbon tax required for competitive alternatives beyond what the general population is willing to bear.</p><p><br /></p><p>Fracked/shale/tar sand oil production at this time is still cheaper than alternatives but is right at the cusp where a significant percentage of the population would endure a carbon tax for cleaner alternatives. Well with about 10 more years of RD and breakthroughs that make production of alternatives more cost efficient. Plus continued blockage of infra-structure investments that would reduce cost of production of these oil reserves. Such as the Keystone pipeline.</p><p><br /></p><p>If a carbon tax takes hold - oil producers would still face lowering oil prices to to remain the cheaper energy to prevent alternatives from grabbing market share. But they would be funding their own demise because the tax revenue generated would be rolled into alternatives as a subsidy. Allowing alternatives to lower their cost of production. </p><p><br /></p><p>Anyway what it boils down to is the Oil producing countries will continue over supply depressing oil prices and get $25.00 to prevent the other sources from eroding their market share as quickly. $25.00 for as much oil as one can produce is better than getting stranded in the future with a large reserve of a resource that has no value.</p><p><br /></p><p>That is my take on it.[/QUOTE]</p><p><br /></p>

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