The price of a barrel of oil has risen from $38/barrel in November 2020 to $75/barrel recently. This is a sturdy recovery given that the price went to $0 earlier in 2020 due to the coronavirus pandemic and a squabble between Saudi Arabia and Russia.
New Mexico oil production hit a record high in 2020, although jobs remain depressed. In the Delaware basin, oil and gas revenue at the wellhead was roughly $24 billion/year.
But wasn’t the pandemic supposed to be a grand opportunity to accelerate the transition from fossil fuels to renewable energies? The fact is that oil and gas across the world contributes about 40% of all greenhouse (GHG) emissions, so this needs to be reduced somehow.
This is where peak oil comes in, to decide when oil production starts to decline toward the Paris Agreement date of 2050, and to determine if $75/barrel is the ideal price of oil in 2021...
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