Plummeting Prices, Slumping Profits and the Future of Big Oil

Abandoned pump. What the slump in oil prices means for Big Oil

It may seem good for the consumer filling up at the pump, as average price for a gallon regular gas hovers just over $1.70, the first time prices were below $2/gallon since March of 2009. But what does it mean for the long haul when all the oil majors report precipitously declining profits in the face of plummeting oil prices?

As Richard Matthews reports in his latest article on GlobalWarmingisReal.com, it has been decades since we’ve seen this magnitude of collapsing  commodity prices. Unlike previous downturns, the economic pressures on fossil fuel production may portend what Matthews calls the “End of Oil.”

Even with the world is awash in oil, declining costs of renewable energy sources and the realization among investors that climate risk is a real thing, we may be on the cusp of a new era for oil, one of decline and eventual replacement.

Read Richard’s full report here.

Image credit: Nocholas Erwin, courtesy flickr 

Author: Thomas Schueneman

Tom has more than ten years of experience as a freelance environmental writer, editor and publisher. As a freelance writer, Tom has contributed to some of the most popular environmental media organizations such as Earth911, TriplePundit, Slate, Cleantechnica and others. Tom was one of a select group of journalists invited by the German foreign ministry to cover German renewable energy technology and climate change policy. In 2009 Tom was an accredited journalist for COP15 climate conference in Copenhagen. In 2013 he traveled to Stockholm on behalf of the PepsiCo Foundation to cover World Water Week. Tom has built a network of contacts that include policymakers, press relations professionals, business leaders, scientists, and analysts involved in sustainable development, economics, and climate. Tom is the founder of TDS Environmental Media and a member of the Society of Environmental Journalists

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