Every couple of days I read an article or hear a story, and I feel that the general public has it all wrong (which they normally do...stupid sheeple.)
http://www.nytimes.com/2015/09/29/business/international/royal-dutch-shell-alaska-oil-exploration-halt.html?_r=0
Why are environmentalists "claiming a victory" and economists having a heart attack over this? I'm thinking of DJ (Orion) here, but if we're over-simplistic about Shell's decision it has everything to do with a decline in oil consumption but also a decline in prices - which many would say is temporary.
Shell, BP, Chevron, Exxon-Mobil, etc...control A LOTTA OIL. They see prices go down, they shut down production. Oil is consumed globally - albeit at a lower rate than in previous decades, and the price goes back up to $75+ a barrel and Shell goes right back to drilling, and frackers gon' frack.
I realize $7B is a huge nut even for Shell, but is the market NOT going to come back anyway? Will Shell and the rest of the oil industry not be back to business as usual in a few months?