Fuel prices have risen more than expected, or forced the acceleration of the popularization of new energy to end the oil era

Crude oil prices have recently accelerated again, NYMEX crude oil prices rose above the $80 mark, the highest since 2014, directly due to OPEC+'s reluctance to accelerate production
growth in the context of knowing that global energy demand is heating up rapidly.
Industry insiders pointed out that if oil prices continue to be high, or force alternative energy investment to accelerate further, it will cause a counterproductive blow
to the crude oil market in the future.

Since the beginning of this year, global conventional energy prices have risen across the board, driven by natural gas, and oil and coal prices have also reached new highs
due to the emergence of alternative demand.
Due to the high cost of natural gas, a large amount of demand is shifting from natural gas to the oil sector
.
Since crude oil is a liquid, it is easy to use, and it is reasonable that it is more widely used than natural gas and has a higher price
.
Once the price of natural gas in calorific value exceeds that of oil, it may be considered that the price has been inverted
.

However, natural gas prices are now significantly higher than crude oil, and if the price of natural gas from the Dutch Equity Transfer Fund (TTF), which is a European indicator, is converted into crude oil, it is equivalent to $160 per barrel, which is about twice that of West Texas Intermediate (WTI) futures
.
As a result, in Europe and Asia, the trend of relatively cheap crude oil being used as a fuel for power generation has begun to expand
.

The recent contract of NYMEX futures rose as high as $80.
11 per barrel on October 8, breaking the $80 mark
after seven years.
For oil-producing countries, fiscal revenues will increase, which does not seem to be a bad thing, but some members say that high oil prices may have long-term negative consequences, which will accelerate the "revival" of the US shale oil and gas industry and attract more investment
in the new energy sector.

In fact, the U.
S.
shale oil industry has indeed begun to recover
after nearly two years of "dormancy.
" According to Baker Hughes, a U.
S.
oil service provider, the number of rig operations reflecting U.
S.
shale oil production was 433 as of Oct.
8
.
While still nearly 40% less than at the end of 2019, before the pandemic, it is more than
double the August 2020 low of 172.

In the 10 years since the "shale oil revolution" began, as long as oil prices rise, shale oil companies will increase production, so the crude oil market will collapse, and this cycle has occurred many times, which has hurt Middle Eastern oil producers and Russia
.
And now, OPEC+ is once again giving up market share in order to maintain prices, which sits the seeds
for another dramatic collapse in oil prices in the future.

OPEC+ not only has shale oil as a competitor, in fact, the high price of fossil energy this year is bound to force new energy investment to further deepen.

Although the lack of electricity in Europe this year shows that the reliability of wind and solar power is still a new problem to be solved, it can still be solved
after further increasing equipment capacity and storage facilities.
The greater the increase in natural gas and crude oil prices in the short term, the more investment and attention will be received in the new energy sector
.

According to the International Energy Agency (IEA), investment in renewable energy exceeded upstream businesses
such as oil and gas for the first time in 2020.
And a sudden global energy shortage is more likely to be an entry point
to hasten the end of the oil age.

Ahmed Zaki Yamani, Saudi Arabia's former oil minister who dominated oil strategy for many years and died this year, also said the Stone Age did not end
with the disappearance of stones.
Rather, it is because of the emergence of new technologies (bronze, iron, etc.
)
to replace stone tools.
Oil is no exception
.
Until oil resources are depleted, the rising cost ratio will force the development of alternative energy technologies, thereby marginalizing
fossil energy under the squeeze of new energy.
In the previous decade, the relatively cheap oil and gas resources brought about by the shale revolution in the United States once slowed down the progress of new energy research and development
.
But for now, the process has been re-accelerated
.