Maybe in better times, the staggering population of the millennial demographic would be a hurdle over which Big Oil could easily leap. But times are tough, and that isn’t our today.
Today, we have Saudi Arabia, Iran, and OPEC officials swaying the oil market with each strategic utterance. We have uber-low prices that have caused many to go under. Big Oil debt is soaring, and lenders are growing skittish. We have record production in Saudi Arabia, and Iran is again pumping at near-sanction levels. We have U. S. shale that is still producing at high rates, albeit with far fewer rigs in action, and with far fewer employees. U. S. shale survivors are leaner and meaner, and Saudi Arabia is desperately trying to keep its head above water, refusing to relinquish market share, no matter what the cost. It’s been a taxing time.
And now, enter the tax to the oil industry – the millennials.
Big Oil should take a note from other markets that have already had to address the impact millennials will have: ignoring this market segment – although a tricky to define market segment – would be a costly ignorance indeed.
This post was published at Zero Hedge on Sep 2, 2016.