Submitted 1 day ago by 65gmexl3@lemmy.world to [deleted]
I don’t understand why there’s no secondary option if Strait of Hormuz goes down. Obviously there are alternative routes out there but why big gas companies even governments did not see this coming. Are they okay losing billions? Or do they actually have a plan that ordinary people don’t know about?
Because being prepared for something that might happen isn’t profitable in the short term
Yep.
If capitalism is calling the shots, then no one plans more than a fiscal quarter ahead of time.
You can’t compete against someone that just ignores all risks, because if nothing goes wrong they put you out of business.
And by the time something goes wrong, they have enough wealth and connections to get bailed out by governments.
Because of that, every society that places capitalism above all else, will eventually implode. One day there just won’t be anything to bail them out with.
It make sense for the oligarchs to keep making bets they can’t lose, but it means everyone else is forced to take bets we cant win.
Because of that, every society that places capitalism above all else, will eventually implode.
This is literally just religious nut end-times doomerism.
Also, your explaination literally doesn’t apply in this situation, since the people most impacted by the blockade are the petro-states of Saudi Arabia, Kuwait, Bahrain, Qatar, the UAE, and Iraq. With the exception of Iraq, all of these countries are monarchies, with the royal families having significant control over oil production and benefitting from its profits. These are not publicly traded corporations with CEOs only concerned about next quarter’s bonus. They aren’t even socialist technocrats given a mandate to do what is best for the good of the people now and in the future. They are individuals who will be directly impacted by this blockade, who are looking not only to the benefit of oil weath in their own lives, but in the lives of their families far into the future. If anyone would have an incentive to take the long view, it would be petro-state monarchs who are, I must point out, not capitalists.
So, no, this is not an example of the failures of capitalism. The far more obvious rationale is that (1) the future is hard to predict and (2) people are bad at planning.
The backup plan is switching to solar. Which JD Vance called a scam. But China’s about to make absolute bank selling solar panels to the rest of the world.
You know Vance, he’s just backing up his boss
Renewable energy would remedy much of this situation, but some CEOs somewhere might not be able to buy a fifth yacht
I mean, we do. The world isn’t experiencing blackouts as a whole. We have alternative energy, generators, contingency plans, other oil suppliers, reserves, etc. It’s just that the largest trading route by far is currently not an option, so we’re feeling the squeeze from that.
Renewable energy sources are purposefully unsubsidized to keep the world dependent on coal, oil, and fossil gas (they market it as natural gas) If they allowed for alternative energies, they’d lose footing as part of the interconnected system of ruling families known as the oligarchy. No progress will be made in the current system. Even climate change won’t be reversible until we’ve been heat-blasted for decades. It’s shameful and infuriating.
In the Netherlands people who use solar have to PAY to feed power to the network. It’s bat shit crazy.
Pay to share? The excess energy? Why punish those people? Ridiculous.
The crazy thing is, the government doesn't outlaw this.
There’s no plan. Most states have strategic reserves of oil and gas, but that’s about it.
Thankfully world shifts to renewables organically year by year.
What most people aren’t aware of, is that those reserves are enough to keep the military running for like 3 days.
If you look at a map, that’s the most convenient and direct way for the oil to get out of that area. That whole region is mountainous. There are plenty of other ways to get oil, but it would take more than a few months to increase their supply.
It’s like, imagine your local grocery store burnt down, and everyone in your neighborhood had to go to the next grocery store over. That grocery store would sell out of goods almost immediately, and you would just have to wait until adjusted to increase their supply.
Oil crisis IS the plan.
shipping is way cheaper by ship. You can’t create new shipping lanes. rail and such would increase costs as is and no one would be using it when the straight is open. It would be unused infratstucture until this happens and then due to disuse it would not work.
The oil companies made a backup plan, patented the hell out of everything and then shelved it. Source: I used to work for one.
A patent means that a design is publicly published. If it was patented there would be designs that anyone could read and build for personal research. There would be YouTubers showing off their work. This happened 15 years ago when 3d printing was still under patent protection.
China in general doesn’t care about US patents until they’re big enough to be sued. It would be on Aliexpress next to the retro game consoles that include hundreds of stolen roms.
And Patents are only good for 20 years.
So yeah, quit the bullshit. I’ve heard stories about miraculous inventions being patented and sat on by oil companies for 50 years. There’s no car that can run on water. They’re all scams that became urban legends.
Gee, I wonder who’s right, the person who literally worked for one of the largest fossil fuel companies in the world or the random Internet stranger 🤔
There are backup plans, they are just more costly. Big Gas companies will just pass that cost down the line. Trust me, those companies were never in danger of losing money.
Canada should have pipelines and port facilities for shipping oil and gas all around the world
But for some strange reason we don’t
says who? the first nations don’t agree to have their lands and people raped by pipeline workers
Because it is a collective problem for society to solve until it is profitable to invest and lock down.
Its not a backup plan. Its the new plan and the current situation is only going to accelerate it. You will know its won when the oil companies convert to wind and solar.
Dont panic it happend also in the year1973 ,
The US declared every country where a pipeline could pass from there to any large consumer as an enemy and has been trying for half a century to destroy them.
bstix@feddit.dk 5 hours ago
They’re not losing billions. They’re just selling less for more.
The price increase is working for them, because it’s pretty certain that oil consumption is already decreasing with more cars and industries turning to electricity in the future anyway and supply is going to decrease as well. So this way, they already have customers accustomed to higher prices. Isn’t that neat…