…is being touted at BBC News that the US leads the world in oil and gas production. It makes it sound like all our worries are over!
/sighs
Report is here.
Thanks for that link. I recently saw a local comment on U.S. oil production and how the U.S. was on the way to supposedly become the new KSA of oil production capacity in the future. No worries.
Perhaps IEA could get together with these folks (https://sustainabledevelopment.un.org/post2015/transformingourworld) and solve many of our problems. Certainly very deserving aspirations but the end result(s) (or reality) may be disappointing all around, IMO.
Goal 7. Ensure access to affordable, reliable, sustainable and modern energy for all 7.1 By 2030, ensure universal access to affordable, reliable and modern energy services 7.2 By 2030, increase substantially the share of renewable energy in the global energy mix 7.3 By 2030, double the global rate of improvement in energy efficiency 7.a By 2030, enhance international cooperation to facilitate access to clean energy research and technology, including renewable energy, energy efficiency and advanced and cleaner fossil-fuel technology, and promote investment in energy infrastructure and clean energy technology 7.b By 2030, expand infrastructure and upgrade technology for supplying modern and sustainable energy services for all in developing countries, in particular least developed countries, small island developing States, and land-locked developing countries, in accordance with their respective programmes of supportJust a wild guess on my part, but I'm thinking we'll be using coal again at some point. My local fireplace supply store started selling bagged pea coal last year. Imagine the price discovery that will ensue when everyone decides they need a wood or coal stove.
This might also indicate a shift of Zion away from the U.S. Weird.
In my recent articles 'Lies And Distractions Surrounding The Diminishing Petrodollar' and 'The Economic End Game Continues,' I point out that the death of the dollar as the premier petrocurrency is actually a primary goal for establishment globalists.
Why?
Because in an effort to achieve what they sometimes call the "global economic reset," or the "new world order," a more publicly accepted centralized global economy and monetary framework is paramount. And, this means the eventual implementation of a single world currency and a single global economic and political authority above and beyond the dollar system.
But, it is not enough to simply initiate such socially and fiscally painful changes in a vacuum. The banking powers are not interested in taking any blame for the suffering that would be dealt to the masses during the inevitable upheaval (or blame for the suffering that has already been caused). Therefore, a believable narrative must be crafted. A narrative in which political intrigue and geopolitical crisis make the "new world order" a NECESSITY; one that the general public would accept or even demand as a solution to existing instability and disaster.
That is to say, the globalists must fashion a propaganda story to be used in the future, in which "selfish" nation-states abused their sovereignty and created conditions for calamity, and the only solution was to end that sovereignty and place all power into the hands of a select few "wise and benevolent men" for the greater good of the world.
I believe the next phase of the global economic reset will begin in part with the breaking of petrodollar dominance. An important element of my analysis on the strategic shift away from the petrodollar has been the symbiosis between the U.S. and Saudi Arabia. Saudi Arabia has been the single most important key to the dollar remaining as the petrocurrency from the very beginning...
I believe that major powers like the U.S. and Russia will probably not become involved in a wider sense, but continue to insert covert forces into the region and support opposing nations through funding and armaments. As with North Korea, I would not expect "world war" on the scale of a nuclear conflagration to develop in the Middle East.
What I do expect is something far more devastating - namely an accelerated disintegration of our already collapsing economic structure as war plays out abroad and the loss of the dollar's world reserve and petro-status hits us hard at home. So far, in my view it appears that the insanity in Saudi Arabia, (along with the continued war drums against North Korea), is a perfect trigger point that provides a catalyst for mass distraction.
World economic war is the real name of the game here, as the globalists play puppeteers to East and West. It is a geopolitical crisis they will have created to engineer public support for a solution they predetermined.
Snydeman wrote:
...is being touted at BBC News that the US leads the world in oil and gas production. It makes it sound like all our worries are over!
/sighs
Report is here.
The reality is that as soon as you stop drilling, or run out of drill room, or even just slow down drilling (as is the case for the chart below) this is what happens:
This isn't some cheesy shale basin I selected to make a point, this is the second most productive in the land. The Permian (#1) has more room to run because it's possibly the best such basin in the world, but we're already seeing big declines in the second (Eagleford) and third (Bakken) best.
So what the IEA is really saying is that their production models for US shale have essentially unlimited drill spots for the next 10 to 20 years and an accelerating drill schedule.
Remember, as soon as you simply flatten out your drill program, you get a decline like we see for the Eagleford above.
Maybe the IEA has it right, but that's a big stretch based on the data we currently have. I can't see it without a huge increase in the price of oil that does not also come along with a huge increase in drill costs AND we have abundant and cheap capital the whole way along.
If or when there's a reckoning in the Junk debt space, and/or a concomitant rise in interest costs, there are a crap-ton of shale producers that simply will not persist. I'm sure their assets will be picked up and produced by more sound companies, but not at the accelerating breakneck pace assumed by the IEA.
Chris,
Thanks for the succinct breakdown of the problems with the report. I was thinking along similar lines, but it’s good to have your feedback and charts on hand when I give my presentation to the faculty here at my school, since I am sure someone will bring it up if they want to try to shoot holes in my data.
Here are the “interest” flyers I’m putting in everyone’s mailboxes, by the way:
This one went out today:
to be followed up by this one the week before I present:
Now, the question is whether anyone shows up or not.
syndeman — love your marketing colateral! , good job… and i’m stunned/amazed that you can do it in a “20 minute presentation”!!!, do you record these? or have notes you can post? – either way best of luck awakening your sphere of influence
Joe
Anyone paying attention knew the math wouldn’t work
http://www.postcarbon.org/the-peak-oil-crisis-the-shale-oil-bubble/
As your guest Arthur Berman said: it’s just a retirement party. Hasn’t the industry known about these " great sources" forever and left them alone because there such an expensive pain in the frack?. Hence Chris’ constant point that these companies are bleeding cash and , like vampires, constantly looking for new blood.
Chris-
I totally agree, its a bogus chart.
It definitely appears that IEA is under strict orders: “under no circumstances will you produce an alarming-looking forecast that shows declining oil production.”
Rumor has it that gas production increases when the oil starts to run low.
davefairtex wrote:
Rumor has it that gas production increases when the oil starts to run low.
stabu-
Turns out I was just kidding about it being a rumor. I saw this “natgas/oil” ratio comment in several places. Here is one.
https://oilandgas-investments.com/2017/natural-gas/what-is-the-most-important-factor-for-2018-oil-price/ There are no oil stocks in the USA. They all have huge weightings of natural gas and natural gas liquids—which are worth a lot less than oil. (I have the two highest US weightings in my subscriber portfolio.) The actual realized price per barrel of oil equivalent (whic includes the natgas & NGLs) for US E&Ps is MUCH less than the WTI price. And what’s more—the older that most US wells get, the more gas they produce compared to oil; in other words the gas-oil ratio increases. See this chart fromwww.shaleprofile.com on the mighty Permian—it gets gassy very quickly:
Fame is no guarantee the evil one won’t catch up. I cannot help but feel sorry for the princes though they care not a whit about me. Don’t know about the mercenaries doing the dirty work but who knows.
http://www.dailymail.co.uk/news/article-5108651/American-mercenaries-tor…
Saudi Arabia arrests second richest man in kingdom (Middle East Monitor)
Quote:
Saudi authorities have arrested Mohammed Hussein Al-Amoudi a duel national with Saudi and Ethiopian citizen and is reportedly the second richest Saudi, after Prince Al-Waleed bin Talal.
While bin Talal’s arrest has gained most media attention. Al-Amoudi’s arrest is especially important because it could potentially destabilize the economy of an entire country, according to Middle East Eye.
Al-Amoudi, who is also known as “the Sheikh”, has invested in almost every sector of Ethiopia’s economy, including hotels, agriculture and astrology.
According to a leaked diplomatic cable from 2008 “the Sheikh’s influence on the Ethiopian economy cannot be underestimated.”
In the nearly ten years a since then it has become even harder to estimate the exact value of Al-Amoudi’s total investment in Ethiopia, which is among the fastest developing countries in Africa. One analyst estimated the value of the Sheikh’s investment at $3.4 billion, which represents 4.7 per cent of Ethiopia’s current GDP.
Mohammed Hussein Al-Amoudi
We’ve crossed over into the Twilight Zone.
Saudi Crown Prince Calls Iran’s Supreme Leader ‘New Hitler of the Middle East’ (Haaretz)
Quote:
Saudi Arabia’s powerful Crown Prince called the Supreme Leader of Iran “the new Hitler of the Middle East” in an interview with The New York Times published on Thursday, sharply escalating the war of words between the arch-rivals. The Sunni Muslim kingdom of Saudi Arabia and Shi‘ite Iran back rival sides in wars and political crises throughout the region.
Mohammed bin Salman, who is also Saudi defense minister in the U.S.-allied oil giant kingdom, suggested the Islamic Republic’s alleged expansion under Ayatollah Ali Khamenei needed to be confronted.
“But we learned from Europe that appeasement doesn’t work. We don’t want the new Hitler in Iran to repeat what happened in Europe in the Middle East,” the paper quoted him as saying.
Not in his oratory style but his level headed approach to his genocide. If he keeps going his numbers may match (25 million for Stalin). Anything that has been done to assist him sickens me to the core. The irony of his invoking Godwin’s law. And he is young, healthy and has many years ahead of him it seems. And now more money than I can imagine. This monster keeps me up at night. What will he being doing next??? (sorry editorial comment not lots of content but at a loss for how to even respond to these events)
Spam, but the 2017 article was a great read. Interesting how things have continued to unfold. May I request an update?
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