Comments by "" (@pierreollivier1) on "The REASON behind the worldwide REFINERY COLLAPSE - VisualEconomik EN" video.

  1. The oil industry is a very cyclical industry, because oil is so capital intensive to (find, extract, transport, refines, distribute etc) it rely almost entirely on investment, but companies can only invest when they have both the ressources and the need to do so. The problem is that our society relies on oil to function properly. So since oil has been discovered and has taken such an important role the same cycle is happening every 10/20y. The industry is doing fine, there’s even some surplus of capacity, so since there’s more oil than there’s demand the price slowly decreases as the profits and in the end the investment does. So they stop spending money or finding new sources and creating new oil rig and stuff, so a few years forward the demand is superior to the offer, so the price skyrocket, and oil companies start making huge profits allowing them to both invest to find new sources, and reopen less profitable sources, driving the price down etc etc. So unfortunately we will always suffer through the same issues.
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