Will alternative energy cause oil prices to go up or down?

You could argue that prices would go down because of less demand and a larger supply. You could also argue that prices would go up because of less demand and thus they need to charge more to get the same profit. Which idea would be right?

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  • Daro
    Lv 7
    1 month ago

    More to it than that. To force the conversion to "alternative energy" gov is using their power to artificially inflate oil product prices. Which doesnt translate to higher profits (except for crooked politicians).

    Wind and Solar will compete (with gov help) with coal and nuclear, both of which government is over regulating to make THEM too expensive.

    The unreliable nature of wind/solar will come out as it becomes more than just supplemental power. They HAVE to keep backup power running and available regardless of how green you become.

    At 1% or 5% or maybe even 10 % the flaws are easy to hide. At 50 60 70% ...... not so simple.

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  • 1 month ago

    the former idea would be accurate.

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  • Anonymous
    1 month ago

    Lower demand, lower price.

    That is how it is supposed to work in theory. 

    And if energy companies are facing competition from new alternative suppliers that also should drive competiton and put downwards pressure on prices. 

    Good news for consumers but bad news for governments relying on tax revenues from fossil fuels. 

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  • Dze
    Lv 7
    1 month ago

    up .. as all the infrastructure and manufacturing is moved over to other things it will cost more to keep a smaller oil operation going . and prices would have to be set to support it with minimal sales ..

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  • 1 month ago

    The bottom line is that oil is artificially cheap either way because we don't count the cost of burning it.  It's a failure of accounting.  Yep, accounting is the problem.  If we actually counted the real costs of burning oil then the price would be way higher and increasing all the time.

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  • 1 month ago

    Up than down. .…………………...

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