Quote (ofthevoid @ 30 Apr 2024 14:46)
It's very difficult to see oil demand not picking up when we have billions of people around the globe inching closer and closer to western living standards. That want a car or some other motorized mode of transport, that want better and more variety in their food (which means, again more energy demand). The thing is, as the lower-mid classes of China, India and the billions of other outside of western world are lifted from poverty, they are going to be leaning on what's out there that's reliable and affordable (the gas combustion engine) for awhile before electrical grids can actually support wholesale electrification and you can have hundreds of million of EVs being all charged at the same time without crashing power grids.
I think you're overestimating the amount of people from the third world who will be lifted to a "Western lifestyle" in the coming decades. A lot of them will, don't get me wrong, but not multiple billions. Not every place will undergo rapid industrialization and wealth gains like China did during the 90s and 00s.
Also, off-grid technology is better suited to these places anyway. Even today, a ton of poor and/or remote folks in third world countries are buying solar panels for their houses/shacks because it provides them with electricity to charge their phones, radios or run their stoves without relying on an electricity grid, which might be unavailable or unaffordable. Likewise, large parts of Africa as well as the lower classes in Asia and Latin America skipped over desktop pcs and landline internet and went straight to smartphones and mobile internet.
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I think it's fine if the Euros don't want it. The point is, they need easy ways to transport natural resources, and waterways are by far the best currently. It's difficult to move oil or gas by pipeline from middle of nowhere, requires fair amount of infrastructure. A lot of their infrastructure was pointed west towards Europe, and when they had to transition east, they couldn't just magically build hundreds of miles of pipelines spanning all across Russia and reverse flows. It's a lot easier when you can just bring it to port and ship it off.
The sea route from the Black Sea ports all the way to China is super long though. Kinda funny how a huge talking point in this thread, roughly 12 to 18 months ago, was that shunning cheap Russian pipeline gas was oh-so-foolish by the Europeans because relying on American LNG supplies which need to be shipped across the Atlantic would be oh-so-expensive - yet now, shipping gas through the Black Sea, the Bosporus, the Mediterranean, the Suez Canal, the Indian Ocean, the Straight of Malakka and the South China Sea is sold as a big strategic gain for China and Russia.

Relying on this route for a sizable chunk of their natural gas supplies would also create a big geostrategic achilles heel for China since Turkey/NATO control the Bosporus and could shut it down in case of a big conflict between the two blocs. Or look at the current issues with the Houthis shelling ships on the Suez Canal route. If Russia and China want to expand their gas trade, it still seems smarter to develop gas fields in Siberia and build pipelines to China from there. Causes staggering upfront costs, yes, but will be much cheaper to operate in the long run and is far more robust to geopolitical conflict.
This post was edited by Black XistenZ on Apr 30 2024 08:13am