Oil prices are projected to fall further below the crucial break-even point of about $65 a barrel next year as major drillers announce cutbacks, according to Grist.
It’s another sign that cleaner energy technology is poised to emerge as the primary energy provider on Earth.
The oil headlines are counter to expectations ballyhooed following government policy changes under President Donald Trump. He made headlines for his “drill, baby, drill” pledge for his second term. But there’s more to energy prices than a dogged commitment to drilling, per Grist and other sources. And, so far, nonrenewable giants haven’t been willing to invest in more projects while prices are low. The price of Brent crude — a benchmark for oil — is forecast to drop to $51 a barrel next year, according to the Energy Information Administration and Grist.
Government measures during Trump’s second term have opened more land and ocean spaces for drilling, with reduced fees and faster permitting. Officials have also proposed weakening environmental safety rules, Grist reported. What’s more, policy changes are removing most incentives to help cleaner, cheaper solar and wind projects as well as electric vehicles.
But the market has stagnated anyway, with expanded tariffs also likely playing a role. Chevron and ConocoPhillips are among the fossil giants cutting back on costs and staff.
“The cost of our largest drilling input cost, casing, has increased over 10% in the last quarter due to steel tariffs,” Texas-based Diamondback Energy CEO Travis Stice said, noting U.S. oil production is at a “tipping point” when considering commodity prices.
Mitsubishi Electric’s efficient heating and cooling HVAC solutions can help you stay comfortable no matter the weather or region. You can even regulate temperatures in each room with individually controlled all-electric heat pump systems.
With an energy-efficient, all-climate system from Mitsubishi, you can reduce the amount of energy needed to heat and cool your home, receive up to $2,000 in tax credits, and get peace of mind knowing you’re choosing rigorously tested, high-quality products.
The reprieve from increased drilling is accompanied by lower gas prices thanks to surplus oil being banked from international work, per the EIA. But gas vehicles also release harmful tailpipe exhaust, causing a range of health and environmental problems. EVs remove gas and exhaust concerns entirely and are part of a cleaner transportation shift.
Less drilling and gas use is also better for the planet.
Sustainability by Numbers reported that 16.5 billion tons of dirty fuels are mined from the ground each year. Extracting oil and gas includes environmental and health perils at each stage. Oil spills are disasters that have a lasting impact for oceans and wildlife, for example.
When burned to make energy, nonrenewable fuels are a leading cause of Earth’s overheating via air-polluting emissions. NASA’s experts have linked the planet’s warming to increased risks for severe heat that could make some places uninhabitable and other extreme weather implications.
It’s important to stay informed about government energy policies. The knowledge can help guide your votes and even investment strategy. A “green” 401(k) can offer yields on par with traditional options while supporting planet-friendlier companies.
On the fossil front, experts said that market disruptions could be here for a while, providing more opportunity for cleaner projects such as solar to shine.
“You’re running out of places to use the oil, so then you’re creating an oversupply condition that’s going to continue for a longer period of time,” Trey Cowan, an oil and gas analyst at the Institute for Energy Economics and Financial Analysis, told Grist. “There is some expectation that oil prices could be lower for an extended period of time.”
Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.
