News for hackers. Stuff that matters.
Re:Oil plunges below zero for first time with May contract e... by ardy42 on Monday April 20, 2020 @12:31PM (#22925479)
> If the pandemic lasts longer than 6 months, which is quite likely, many high-cost oil producers might not survive. Some would argue this could lead to shortage and a much higher price later on, but long-term oil demand could also be affected.

Even if they all declared bankruptcy, their infrastructure would still be there. I'd imagine someone would buy it and bring it back online if/when prices recover.

Re:Oil plunges below zero for first time with May contract e... by marcosdumay on Monday April 20, 2020 @01:59PM (#22926508)
Depreciation exists, and for mining investments, it's quite fast. Without extra investments, in 3 years most of that infrastructure won't be there anymore.
Re:Oil plunges below zero for first time with May contract e... by fragmede on Monday April 20, 2020 @02:45PM (#22926962)
Fascinating. Is crude oil extra corrosive or is it something in the environment? Ocean salt water is highly corrosive but then what about equipment on land? Is there something that could be done to make an idled investment last longer?
Re:Oil plunges below zero for first time with May contract e... by marcosdumay on Monday April 20, 2020 @03:22PM (#22927375)
Not so much corrosive as it is finite. A wheel will gather some oil, and then it's gone, and you need to dig another one.
Re:Oil plunges below zero for first time with May contract e... by nopinsight on Monday April 20, 2020 @12:45PM (#22925620)
I agree. It depends on long-term demand change, if any. New investors might be quite reluctant for a while regardless.