re: There’s more oil and gas than ever — and the industry is tanking

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All the environmental points are moot, there’s just too much oil on the market.

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It’s not moot when the alternatives are now here. And while the consumer side may take more time to change, the investing trend is gaining popularity even among institutional investment firms (Blackrock) AND unlike consumers (e.g., have a gas powered car), investors don’t have to participate in any sector and any other sector is an alternative, not just a director competitor.

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you think some battery powered cars are dragging down the price? I

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No I don’t think that as of now. But I’m saying that as they become more popular, that becomes more of a possibility.

And from an investment standpoint in a forward looking market, with more alternatives beyond just the sector to search for better and safer investments, I think this is much more of a current (or at least near-future) risk for the sector.

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This is a simple issue of too much supply.

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And this seems like a conundrum for the sector. On one hand, since a higher supply lowers prices, they make less, but consumers are content paying low prices.

On the other hand, lower supply would mean higher prices and they make more, but consumers are not so content paying higher prices.

With no viable alternatives, the consumer has (has) to deal with it and demand was pretty inelastic. But with more and more affordable alternatives, I think demand will become more elastic, which will then drive down prices again, and they make less again.

So I really think the sector is in bad place moving forward since elasticity is now greater risk for them as they can’t just rely on artificially lowering the supply and lowering it would less to the elasticity itself.