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Is The Price Of Oil Falling Because It Is Becoming Obsolete?


After years of steadily climbing, the price of oil is falling fast, and while no one on the consumer side is complaining, many people are wondering why. One possibility is the fact that oil has been over-produced for years and is actually in the process of becoming obsolete.

It was reported by Bloomberg this week that oil dropped below $30 a barrel in New York for the first time in 12 years. Meanwhile, BP announced that they would be cutting over 4,000 jobs citing difficult market conditions, but not giving any specific reasons.

Oil companies have even begun scaling back on their drilling operations as a result of the falling prices. Late last year Royal Dutch Shell announced that they would be indefinitely suspending their Arctic drilling operations.

“Shell continues to see important exploration potential in the basin, and the area is likely to ultimately be of strategic importance to Alaska and the U.S. However, this is a clearly disappointing exploration outcome for this part of the basin. This decision reflects both the Burger J well result, the high costs associated with the project, and the challenging and unpredictable federal regulatory environment in offshore Alaska,” the company said in a statement.

As the price of oil continues to fall and the future of a once invincible industry becomes uncertain, another situation is simultaneously taking place in the realm of energy and transportation. Technologies that threaten to make oil obsolete are actually starting to become plausible and are being marketed to the masses for the first time.

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Solar energy is on pace to become the dominant form of energy on the planet. Many experts have predicted that this shift will be occurring in the next few years, as solar technology becomes cheaper and more available to the average person. According to a recent estimate released by the International Energy Agency, solar will be the world’s primary source of energy by 2050.

Bloomberg’s New Energy Finance research unit recently published a report on the cost of electricity worldwide, and it shows that clean, renewable energy is becoming mainstream.

“The Bloomberg report says that the average cost of electricity generated by wind farms (on land, not offshore) throughout the world dropped to $83 per megawatt hour in the second half of this year. At the same time, electricity generated by solar panel farms fell to $122 per megawatt hour.

In comparison, the cost of electricity from coal and natural gas actually rose in the second half of this year. Coal-based electricity cost $75 per megawatt hour (up from $66 per megawatt hour) in North and South America, while natural gas-based electricity cost $82 in North and South America (up from $76 per megawatt hour).”

What this means is that wind energy is now economically competitive with fossil fuel energy, and solar is soon to follow. As clean energy technology and financing costs continue to drop, coal, oil and natural gas will become increasingly marginalized.

While all of this is taking place, electric cars are finally becoming cheap and common enough to make a serious impact on the market, and that impact will only continue to grow over time.

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As these alternatives have begun to reach the market, oil companies and governments have continued to harvest oil, at even higher rates than they have in the past. According to government statistics, US crude oil production has nearly doubled since 2010. In the past decade, new technology and drilling techniques have allowed for oil to be pulled out of the earth in greater quantities than ever before.

This increased oil production, coupled with the growing alternatives in the energy market, has created a situation where the supply of oil is now much greater than the long-term projected demand. Governments across the planet, and all of the major oil companies now have a massive surplus of oil, possibly more oil than humans will ever need considering the proliferation of new technologies and alternative energy sources. If this is the case, then that would mean that oil is becoming obsolete, which means that the demand for it will continue to decrease, and thus the price along with it.

John Vibes is an author and researcher who organizes a number of large events including the Free Your Mind Conference. He also has a publishing company where he offers a censorship free platform for both fiction and non-fiction writers. You can contact him and stay connected to his work at his Facebook page. You can purchase his books, or get your own book published at his website www.JohnVibes.com.

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  • no, it’s economic warfare.

  • Ha

  • Of course it is, ”Big Oil”, have lost their biggest customers to Alternative Energy, Principally the US Navy.

    • one ship does not make a navy.. smh..

    • Lol. What an Idiot.

    • The United States Navy currently operates over 80 nuclear-powered vessels, including ten aircraft carriers.

    • The entire US submarine fleet is nuclear

    • History lesson. Three mile island/chernobyl. Oil much safer

    • Jeffrey Vetter The US Navy, and others are now generating Power from Seawater and Nuclear Energy.

  • I sure hope so

  • Lol wow ask the Saudis

  • In order to preserve nature and natural resouces, economy always is replaced to a second place.

  • Worldwide storage facilities are at capacity.

  • Humanity has got to get off oil.

  • Asinine to say air will become obsolete, so how is oil going to become obsolete, it won’t. It is given to this planet as is the air and water. We are just becoming aware of small thought that energy is everywhere. The big oil execs are still making their money on the their research and investment departments in energy distribution. If you want to talk about obsolete, let us talk about how this nation has a sharing society.

  • “Is the price of oil falling because it is becoming obsolete?”
    These online quizzes keep getting easier and easier

  • NO!

  • It’s Saudi Arabia killing us with kindness.

  • Here’s the thing about oil. The U.S. dollar is backed by oiil tanks to Richard Nixon. It is one of the ways this country is to fall. The Central banks did the VERY same thing in Cypress and Germany and Greece. The Rothchilds have been doing the same crimes for more than 100 years. Along with J.P.Morgan/Chace.KNOW the ENEMY.Understsand the weapons they use. As oil now becomes Obsolete so dose the Dollar.This is why we need to return to the Gold standard. That way our money won’t be devalued out of existance.It is designed ot ENSLAVE us.

  • No

  • Hope so

  • Its part of it yes..

  • Interesting theory. I like this guy’s theory better:

  • The price is falling because OPEC is flooding the market trying to drown out the domestic oil producers(us mkt)

  • No , because the Saudis want to shut everyone else down !

  • Karma is what it is. Big petro think they run this world need to start paying up. People out there working hard on those oil rigs are paying for what they are doing. They will be losing there jobs because of big petrol choices.

  • Please give this gift: Let’s make together a better world without cost (English and Spanish) at: http://www.Peace-and-well-being-worldwide-Paz-y-Bienestar-al-Planet.com RT

  • Oil is hedged at about $70 a barrel, most companies need oil above that to be profitable. They are debt riddled and haven’t cut back production because they are still trying to produce as much as possible while they’re hedged at $70. That’s why it keeps going down and down and production hasn’t been cut back. We are close to a bottom but the damage has been done to the producers, their debts and loans will take years to recover from.

    • Production has been cut way back. Many oil rig workers are out of work because of it. I don’t understand why because we are using as much if not more with prices so low.

    • World wide production hasn’t been cut back. Rig count is down but that’s shale which take $70-90 oil to be profitable for the majority of companies. Google “economic calendar” the data usually comes out every Thursday. I’m waiting on the sidelines to buy USO, oil might bottom around $27.

    • Dude, it’s at the high 20’s right now.. Testing 2008 levels.

    • It’s hard to make money producing oil when he barrels are worth more than what they carry.

    • Here’s my current chart on oil.

    • Markets and oil are really oversold so they might bounce or chop sideways for a bit but there is a pretty high chance to make another nasty leg down before we actually find a bottom, that would also start the real market sell off which will make the last two weeks look like walk in the park in comparison.

  • Ignorance of you think this, OPEC is nothing what it once was, and Middle East countries are flooding the market its that simple. The world hasn’t truly moved into renewable energy just yet I wish

  • The depression is over according to the media so it must be because U.S. is at (cold) war against Russia! In order to Weaken Russia they are sanctioning Russia while keeping the oil price low.

  • Finally, the use of oil is becoming obsolete. The conversion to other forms of energy is something I never thought would happen.

  • haha. Or you could look objectively and see its the direct result of actions by the Saudis to destabilize Putin who has maximizes through modern mining and drilling methods the bulk of Eurasia into eastern Europe’s energy reserves as Russia held onto claims upon the rights the Soviets seized and somewhat worked throughout the globe.

  • No, the price is falling because a war is brewing between Saudi, Russia, China and the USA

  • nope the fall of oil prices is to bankrupt smaller oil producers creating a monopoly to really stick it to us $ 10 a gallon is coming so enjoy the $2 while you can

  • Certainly not. The Saudis have been working very hard to drive American oil production into the ground. They know they need 40+ per barrel to break even. They’ve been sitting on multiple years of surpluses and can afford the temporary discomfort for the potential gain.

  • No.. Renewable energy is still relatively far away from becoming a worldwide source of power..

    We have literally hundreds of years worth of oil/ natural gas, there is no shortage.

    The lowering prices are largely due to speculative selling in the markets caused by the lifting of the embargo on Iran, as they will now pump 1-5 million barrels of oil into the market a day.

    This glut may incentivize the proliferation of alternative energy sources though..

    Coal, on the other hand, is fucked.

  • In the first quarter of Victorian Britain one of the main concern about the future was that the roads would become so filled with horses that horse Shit would be three foot deep and it would bring things to a standstill ( they weren’t bothered by the health hazard ) but the Car was invented ,problem solved ,now it is with Oil .people can’t see a viable alternative , but things in relative time could change overnight ,we could find or invent something that is right here under our noses.

  • You would think that cheep oil would hurt alternative energy investment, but , it seems to have no effect !
    These new pricing positions appear to be a booster for the value of the U.S. dollar and little else !

  • …for they can raise it again.

  • No, its over supply,those that did ecomomics in high school know this, the rest of you should go back to your smart phones and leave the real world to the real people.

  • No

  • They are simply trying to destroy someone’s economy. Nothing to worry about, because the banks, our good neighbors, will soon own all of the resources.

  • Possibly the West’s geopolitical aim of sanctioning those who do not accept the US petro dollar.

  • No. The world’s oil supply is controlled by a slect few, theses select few also control alot of industries. This allows them to increase the price of everything and once it’s where they want it they will increase the price to increase again ; allowing the illusion of the global economy to recover.

  • Because people are using resources more efficiently

  • Do you have any idea how many products are petroleum-based?

  • The real truth is the Saudis know it will hurt some sectors of our economy NM and TX are feeling the burn bad!!! There is long term affects on state budgets!!!

  • not as long as we are supporting air travel

  • The Saudis are flooding the market.

  • Very speculative article i believe that this is far off being a reality, although the concept of it is great I hope that its right, but im pretty sure its not

  • The places that have the most renewable energy have the most expensive energy. It’s because it has to be subsidised. Renewable energy is shit’

  • No, it’s over supply of it

  • America is producing more then the Arab countries

  • No.

  • OPEC is dropping prices to put American oil companies out of business….

  • renewables still dont deliver very strong energy for their cost. Its a long way from that. The oil prices are more politics than a shift in energy.

  • We have to fix the petrodollar problem. The value of the US Dollar currency is tied to the price of oil. Oil drops in price US Dollar’s value drops as well.

  • For starters the sitting President is not the son of an oil billionaire..

  • No you dipshit! The Saudi’s don’t want the US to produce its own oil. Drop their price and drive out the competition. Then off they go , in control again.

  • Oil is certainly not obsolete. The drop in oil prices is nothing more than OPEC reminding everyone who’s in charge. They can bring it down to $2 a barrel without a flinch.

  • good to know (8

    “Take a look at the map above. After examining it for a few seconds, would you agree that North America is bigger than Africa, that the state of Alaska is larger than the country of Mexico, that China is smaller than Greenland? Well, what if I were to tell you that, in real life, Africa is three times bigger than North America, Mexico is larger than Alaska, and China is four times bigger than Greenland?

    The map above is one of the most commonly used maps in Canada and the United States. It is known as the Mercator projection which is found anywhere from classrooms to boardrooms.”

    peace in space (8


  • Markets are flooded with the black gold !

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  • No, The Saudi’s are trying to send foreign oil companies broke so they can regain a monopoly on Oil.

  • It would be an encouraging thought if that were the case.

  • Over producing. Lower sales.And the Saudis trying to bankrupt American oil companies. They need your dollars. Wait till Iran starts pumping oil.Happy days ahead on the price of oil.Another $10 a barrel fall expected

  • No Its a ploy by the Saudis to go after Iran for trying to build a nuclear bomb. obamas 150 billion offsets that impact.

  • Nope. Election cycle.

  • it is becomming obsolete, they kept it going long enough now and now it’s time to bring out all the technologies they stole and hide from us for a very long time……

  • its election year the republicans need all the help they can get?

  • From my sources I’ve gathered that we are exporting oil because just recently discovered was 500 years worth of good crude oil in the North Slope of Alaska.

  • LoL. I don’t believe so

  • I wish someone would show me how a wind-powered jet airplane would work.

  • Fossil fuels will be obsolete soon!

  • Bio fuel from hemp will fuel the world .

  • No I don’t think renewable energy will take over. The Saudi’s are selling oil below market value to cripple US oil production. It is not profitable for US oil companies to sell oil that cheap. They are losing Billions and shutting down US oil fields because of this. After they shut down just watch prices will rise to new highs.

  • I assumed oil prices were dropping due to reduction in demand since the war slacked off.

  • Prices falling because the usual method of starting a new war to keep price high on uncertainty is no longer working. Perhaps.

  • Oil has been obsolete since the time of Nikola Tesla. If J.P. Morgan had shared Tesla’s idealism and supported him, instead of being a typical corporate elitist, and burying Tesla’s work, we’d be reading about oil in the history books, not the current edition of the stock market news.

  • The answer is simple. The Arab countries are trying to put the Arab frackers and oil companies out of business. Then they can charge what they want.

  • Don’t be stupid