Rising gas prices is just the beginning
Sad to say, but yes, gas prices, and probably natural gas prices, are going to go through the roof. Not bad enough that we’ve got inflation winding up into possible (probable) hyper inflation, but the so-called green energy lobby has been out there actively curtailing petroleum production. Demand isn’t going anywhere but supply is dropping below sustainable levels; this will create scarcity and force prices of all petroleum based products to rise, and your Irascible Correspondent prognosticates, rise steeply. It is now too late to avoid an oil supply crisis. Oilprice.com carries the story by David Messler:
There are a number of observable trends in oil supplies and by extension prices, presently. I am going to discuss one of them in this article. A lack of capital investment in finding new supplies of oil and gas. A favorite analogy of mine comes to mind, the ship is nearing the dock. In nautical parlance that means the time for course corrections is at an end. So we shall see if that is the case for oil. The massive “ship” that is world oil demand is on an unalterable collision with supplies that will have profound implications for consumers. This key metric reveals what the future is likely to hold for our energy security as the world continues to recover from the virus to those who will listen. The level of drilling and by extension capital investment is insufficient and has been for a number of years to sustain oil production at current levels. It’s no secret that even with the lower break-even costs for new projects thanks to cost-cutting by the industry the last few years, oil extraction is a capital-intensive business. The chart below from WoodMac, an energy consultancy, shows just how severe the decline in capex has been.
The bottom line:
To summarize. In an amazingly short period of time, the world has made an irreversible bet on green energy sources – solar, wind, and biofuels – being able to shoulder much of its energy burden. This is a transition without a track record and a very spotty roadmap of implementation. Time will tell if this bet will pay off. If my judgment is correct, we won’t have long to find out.
Mr. Messler clearly is not saying all he is thinking, that the world has merged into the fast lane to ruin and there is no off ramp any time soon. Your Irascible Correspondent agrees, with Mr. Messler, but is not so modest as he.
This is not the first time that an effort to choke off oil production has been made. This reminds me very much of the Deepwater Horizon disaster in the Gulf of Mexico back in April of 2010. A disaster which was entirely planned and executed, I will argue, to drive oil production out of the Gulf (in which it succeeded magnificently), drive oil prices up (another success) and advance the implementation of green energy. If there had been no other clue that it was a planned operation, consider this: they sent out fire boats to pump tons of water into a floating platform to “attempt” to extinguish an oil fire, and were surprised when that platform sank and broke the tube connecting it to the well in the sea floor. Never mind the documented fact that many standard operating procedures were violated, alarms were disconnected and key personnel disappeared once they left the rig.
In response Immaculate Barry shut down all oil drilling in the Gulf with the result that all those platforms went down to Brazil to ply their trade and George Soros was able to buy up all kinds of property for cheap, including local banks that specialized in financial services to the oil industry along the Gulf coast. “We can’t drill our way to lower gas prices,” Teh Won assured us. But we could, and did, which success is anathema to the Kill America at All Costs crowd that run the puppet government in DC today.
If at first you don’t succeed, try, try again. So here we are once more.
Supposedly all this push for the Green Nude Eel to provide “sustainable” energy for a non-global-warmed future, is to save us from climate annihilation. Ri-i-i-i-ight! The very same people whose ideological forbearers gifted the future with a legacy of 150,000,000 murders care about the future lives of our descendants. It is to laugh except that the tears just keep on coming. Never mind the – at best! – disputed science of Anthropogenic Global Warming, or certain flavors of Climate Change or just plain Oops!, Something Must Be Done! Clearly our Very Concerned Benefactors know just what to do, and will make sure that we take our medicine whether we like it or not because its For Our Own Good. Oh, what noble bastards our betters are! Bald faced liars, too.
John Q. Taxpayer isn’t going to benefit from any of this, unless you call a pat on the back by the same self righteous government that’s picking his pocket a benefit. I don’t. So who stands to benefit?
First and foremost the very same pocket picking government, the bureaucracy that act as as prison guards in the Glorious
Gulag World of Next Tuesday, the elected and unelected Public Servants [sic] as the the Wardens skimming the take, the public/private grifters angling for government contracts and the billionaire “donors” who wind up owning everything. It is only going to get better for these robbers as the Great Reset rolls in and the little guy finds out that the whole system was reworked against him while Covid-19 terror propaganda stalked the land. Essentially they are in the process of changing the way your credit score is figured (discussed here last week). Once your score was based on how well you paid your bills, from now on it will be how well you conform to Social Justice diktats.
Which gets us back to oil. Since petroleum is a Bozo no-no in their book, your new credit score will get docked to the extent that you use oil based fuels vs. “renewable” fuels. By restricting the use of petroleum (coal is right out) based fuels (except for themselves, of course) they are “helping” adapt us to their new social justice world. Now, if you don’t want to get noticed for being a Hydrocarbon Hog you might be forced to buy an electric car, which might be fine, if you are so inclined, except that reliable and plentiful electrical power generation can’t be accomplished with solar and wind power. Which means your electricity will be rationed, and your electromobile will spend most of its time waiting for permission to suck a few volts down in preparation for your quarterly jaunt around the block.
Even better, since the vast majority of cargo haulers are oil fired (trucks, trains, planes and all the ships at sea) it means that you will live a simpler life style, since you can’t hop in the Flivver to go get stuff it will have to be shipped in. Which it won’t be if these evil ‘Rats get their way. Things are going to get tight and very expensive. Your Irascible Correspondence prays that these troubles will be brief because We the People won’t permit it to continue.
Ask me how