The Oil Conundrum Explained

Oil as a commodity has always been a highly valuable early warning indicator of economic instability.  Every conceivable element of our financial system depends on the price of energy, from fabrication, to production, to shipping, to the consumer’s very ability to travel and make purchases.  High energy prices derail healthy economies and completely decimate systems already on the verge of collapse.  Oil affects everything.

This is why oil markets also tend to be the most misrepresented in the mainstream financial media.  With so much at stake over the price of petroleum, and the cost steadily climbing over the past year returning to disastrous levels last seen in 2008, the American public will soon be looking for someone to blame, and you can bet the MSM will do its utmost to ensure that blame is focused in the wrong direction.  While there are, indeed, multiple reasons for the current high costs of oil, the primary culprits are obscured by considerable disinformation… 

The most prominent but false conclusions on the expanding value of oil are centered on assertions that supply is decreasing dramatically, while demand is increasing dramatically.  Neither of these claims is true…

The supply side of the oil equation is the absolute last factor that we should be worried about at this point.  In fact, global oil use since the credit crisis of 2008 has tumbled dramatically.  This decline accelerated at the end of 2011 and the beginning of 2012 all while oil prices rose:

http://www.energyasia.com/public-stories/markets-world-oil-demand-fell-300000-b-d-in-4q-2011-as-recession-grips-tighter


In its February Oil Market Report, the International Energy Agency (IEA) forecast a reduction in the growth of demand into the Spring of 2012, despite reports from the mainstream media that oil prices were spiking due to “recovery” and “high demand”.  Simultaneously, the IEA reported that petroleum inventories rose to the highest levels since October, 2008:

http://omrpublic.iea.org/currentissues/full.pdf


The Baltic Dry Index, which measures global shipping rates and the demand for freight in general, has fallen off a cliff in recent months, hovering near historic lows and signaling a sharp decline in world demand for raw materials used in production.  A fall in the BDI has on multiple occasions in the past been a predictive indicator of stock market chaos, including that which struck in 2008 and 2009.  A sharply lower BDI means low global demand, which should, traditionally, mean decreasing prices:

http://investmenttools.com/futures/bdi_baltic_dry_index.htm

So, supply is high across the board, inventories are stocked, and demand is weak.  By all common market logic, gasoline prices should be plummeting, and far more Americans should be smiling at the pump.  Of course, this is not the case.  Prices continue to rise despite deflationary elements, meaning, there must be some other factors at work here causing inflation in prices.

Ironically, stock market activity in the Dow has now come under threat from this inflationary trend in oil.  Rising energy costs have essentially put a cap on the epic explosion of equities, and many mainstream analysts now lament over this Catch-22.  The problem is that these investors and pundits are operating on the assumption that the Dow bull market is legitimate, and that the rally in oil is somehow an extension of a “healthier economy”.  This version of reality, I’m afraid, is about as far from the truth as one can stretch…

In the candy coated world of Obamanomics, high priced stocks are a valid signal of economic growth, and oil is rising due to demand which extends from this growth.  In the real world, stock values are completely fabricated, especially in light of record low trade volume over the past several months:

http://money.cnn.com/2012/01/19/markets/trading_volume/index.htm

Low trade volume means very few investors are currently participating in active trade.  This lack of investment interest in the markets allows big players (such as international bankers) to use their massive capital to swing stocks whichever way they choose, even to the point of creating false market rallies.  Throw in the fact that the private Federal Reserve (along with helpful hands-off approach by our government) has been constantly infusing these banks with fiat printed from thin air, and one can hardly take the current ascension of the Dow or the S&P very seriously.

Another issue which should be stressed is the renewed tensions in the Middle East, namely, the very distinct possibility of an Israeli or U.S. strike in Iran, and the possibility of NATO involvement in Syria (which has extensive ties to Russia and Iran).  Certainly, this is a tangible danger that would have unimaginable consequences in global oil markets.  However, the threat of growing war in the Middle East is in no way a new one, and has been ever present for the past decade.  It hardly explains why despite hollow demand and extreme supply, the price per barrel of oil has been an unstoppable rising tide.  Attempts by Saudi Arabia to reverse inflationary trends by promising increased production in the wake of Iran turmoil has so far been ineffective. 

Simultaneously, large oil reserves have been discovered off the coast of Greece:

http://www.balkanalysis.com/greece/2010/12/08/greek-companies-step-up-offshore-oil-exploration-large-reserves-possible/


Off the coast of Ireland:

http://www.independent.ie/national-news/ireland-on-the-verge-of-an-oil-and-gas-bonanza-679889.html

Massive fields in Mongolia have been uncovered:

http://www.chinadaily.com.cn/bizchina/2009-08/08/content_8544985.htm

And of course, the vast shale oil fields in North Dakota and Montana are finally being tapped:

http://www.mtpioneer.com/archive-July-oil-reserves.htm

Oil supply has been ample and large oil reserves are being discovered yearly.  Speculation would be the next obvious assumed culprit, and there are certainly some signals of such activity.  Oil speculators traditionally use the forced accumulation of oil inventories to reduce market supply and artificially increase prices.  Inventories have indeed been high.  However, as previously stated, demand for oil has been static or fallen in most countries around the world since 2008, and there has been NO petroleum shortages due to manipulated markets.  In fact, there have been no petroleum shortages period.  Speculation has the potential to cause sharp but short term shifts in markets, but one must take into account the long term trend of a particular commodity to understand the root cause of its increasing or decreasing value.  Again, inadequate supply is NOT the trigger for the ongoing oil price problem, whether by threat of war, or by reduction through speculation. 

This schizophrenic disconnection between the stock market, and oil, and true supply and demand, is, though, a symptom of one very disturbing illness lurking in the backwaters of the U.S. fiscal bloodstream; dollar devaluation.

We all understand that the Federal Reserve has been engaged in non-stop quantitative easing measures in one form or another since 2008.  We don’t know exactly how much fiat the Fed has printed in that time, and won’t know until a full and comprehensive audit is finally enacted, but we do know that the amount is at the very least in the tens of trillions (be sure to check out page 131 of the GAO report below to find their breakdown of Fed QE activities.  This is just the money printing that has been ADMITTED TO, in excess of $16 trillion):

http://www.gao.gov/assets/330/321506.pdf

The dollar is being thoroughly squashed.  Why is this not showing in the dollar forex index?  The dollar index is yet another example of a useless market indicator, being that it measures dollar value relative to a basket of world fiat currencies, ALL of which also happen to be in decline.  That is to say, the dollar appears to be vibrant, as long as you compare it to similarly worthless paper currencies that are being degraded in tandem with the greenback.  Once you begin to compare the dollar to commodities, however, it soon shows its inherent weakness. 

The dollar’s only saving grace has long been its status as the world reserve currency and its use as the primary trade mechanism for oil.  This, however, is changing. 

Bilateral trade agreements between China, Russia, Japan, India, and other countries, especially those within the ASEAN trading bloc, are slowly but surely removing the dollar from the game as these nations begin to replace trade using other currencies, including the Yuan.  I believe commodities, especially oil, have been reflecting this trend for quite some time.  The consequences of the dollar’s ties to oil are detrimental to all nations that consume petroleum, and they are clearly moving to insulate themselves from further devaluation.  

Even after the release of strategic oil reserves back in the summer of 2011 in an effort to dilute prices, and the announcement of an even larger possible release of reserves this month, oil has not strayed far from the $100 per barrel mark.  High Brent crude price have held for years, even after numerous promises from government and media entities admonishing what they called “speculation”, and promises of a return to lower energy costs.  Not long ago, $100 per barrel oil was an outlandish premise.  Today, it is commonplace, and some even consider it “affordable” compared to what we may be facing in the near future, all thanks to the steady deconstruction of the last pillar of the U.S. economy; the dollar, and its world reserve label.

Ultimately, no matter how manipulated and overindulged the stock market becomes, no matter how many fiat dollars are injected to prop up our failing system, the price of oil is the great game changer.  As inflation is reflected in its price, and energy costs burn out of control, the Dow will begin to fall, regardless of any low volume or quantitative easing.  In all likelihood, this conundrum will be blamed on as many scapegoats as are available at the moment, including Iran, or China, or Russia, or Japan, etc.  Each and every American, and especially those involved in tracking the economy, will have to remind themselves and the public that at bottom, it was the Federal Reserve that created the conditions by which we suffer, including currency devaluation and high oil prices, NOT some foreign enemy. 

The one positive element of this entire disaster (if one can call anything “positive” in this mess), is the manner in which the high price of oil tends to dash away the illusions of the common citizen.  It is an issue they simply cannot ignore, because it affects every aspect of their lives in minute detail.  Costly energy awakens the otherwise ignorant, and forces them to see the many dangers lurking on the horizon.  Hopefully, this awakening will not be too little too late…

 

 

You can contact Brandon Smith atThis e-mail address is being protected from spambots. You need JavaScript enabled to view it

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dfr
ZIRP
written by dfr , March 23, 2012

Bubbles-Bernanke has held the interest rates too low for too long, in an effort to force savers out into "riskier" categories ... and while it benefited the banks initially, they are now losing money on it also. He actually gave a speech to the small and midsized bankers trying to defend being on ZIRP so long just the last month, IIRC.
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Oil supply/demand IS a problem
written by NFE , March 23, 2012

Massively wrong on both supply and demand of oil.

Yes, demand has dropped in OECD countries, and most noticeably in the US, since 2008, but that has been replaced with substantial demand growth, noticeably in China and in oil-producing countries. Total global demand is in fact a little higher than it was in 2008.

In terms of supply, you have totally ignored the effects of decline rates on existing producing fields (equivalent every year to about half of Saudi Arabia's output) and the "massive extra supply" you have talked about is, variously, laughably small, expensive to produce, suffers from enormous decline rates, or totally unproven reserve base.

One of the most respected oil analysts in the world, Paul Horsnell of Barcap, has stated in the last couple of days that spare productioncapacity is likely only 1.6-1.7 million barrels/day. This both calls BS on the Saudi oil minister al Naimi claiming that Saudi alone has 2.5 million bpd of spare capacity, but also shows how extraordinarily exposed the oil consuming world is to even a small supply problem.


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manipulation and the dead dollar
written by garden gritty , March 23, 2012

The price of a barrel of oil is being worked up to $200.00/barrel. Fuel, food will/is for many no longer affordable.

Then the dollar will see its final end.
It's all, like everything else that is happening, being greatly manipulated by the puppetmasters pulling all the strings of govt to topple and turn into one world govt/one military complex/one religion of the masses.

There is nothing any longer that is not manipulated, except those few individuals who think outside the box and are not sheeple.

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It's not the Saudi's to blame
written by garden gritty , March 23, 2012

Saudi Arabia, China, and other countries clearly see that our boy "king" has no clothes. They've seen and felt our corrupt dealings in every level and are cutting and running to protect what they have, their own interests.

Of course, like everything else we have done around the world, we will shift the blame to others and make all think we are lily white and point those crooked, wagging fingers - all the while there are more of our crooked fingers pointing right back at U.S.

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Brandon Smith
...
written by Brandon Smith , March 23, 2012

@NFE

Where's the proof? Where are the shortages? Where are the long lines of cars waiting for gas rations? You peak oil people never seem to be able to back your claims with tangible evidence, only hearsay.

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Supply/Demand Numbers Are Manipulated Too!
written by mt4liberty , March 23, 2012

It's very difficult to determine accurate metrics of global supply available or total demand as these numbers are more than likely manipulated as well.

One thing is certain, the amount of dollars in the system has grown exponentially. This inflation of the money supply is and will continue to be the force that brings the global economy to it's knees.

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@Brandon
written by NFE , March 23, 2012

The proof is the market price of oil - $125
The proof is the >10% drop in US demand since 2008 (unless you think that was voluntary)
The proof is by comments going back at least as far as 2006 from the Saudi oil minister (no less) about actual decline rates in Saudi fields
The proof is Obama and Cameron talking about release of oil from the SPR despite the Saudi promises to open up the taps if required (don't they trust the Saudi promises??)
The proof is in numerous reports from military sources (US, German, others) stating serious concern about oil availability
The proof is in what the IEA (Fatih Birol) says
The proof is all around you, if you open your eyes and unblock your ears

In a free market, the rationing of a product is done via price rather than government mandate...

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Brandon Smith
...
written by Brandon Smith , March 23, 2012

@mt4liberty

That's possible, but the bottom line is, you can't fake supply. Either it exists, or it doesn't. If supply is dwindling, as peak oil proponents claim, then where are the shortages? Where is demand NOT being met? Show me where in the world people are being forced to ration gasoline and wait in long lines, or can't purchase gasoline, and then there is something tangible to back the supply side argument. Otherwise, its all hypothetical.


@NFE

Thats a long list of not much. All of your pieces of "proof" are easily explained by stagflation (deflation in markets and demand due to the collapsing economy along with inflation in money supply). To prove peak oil, you have to prove that supply is not meeting demand. Again, WHERE IS DEMAND NOT BEING MET? Show me.

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@ Brandon
written by NFE , March 23, 2012

Yes, I know what stagflation is and have been predicting it since about 2004, so I'm on board with most of your thought process.

Supply = demand, therefore demand will always be met (at a price). As I said, rationing is done via the market pricing mechanism - your required "proof" of demand not being met will never materialise, although people's desire to buy (at cheaper prices) will manifest itself through increasing public anger at fuel prices, increasing incidents of fuel theft, etc.

Seems like a large number of Americans are unhappy with >$4 gasoline - I bet quite a few of them would use more if prices were cheaper (check out drop in Vehicle Miles Travelled), but their DEMAND for cheaper fuel is not being met....

And if you want to see lines of people waiting to fill their cars, you only need to look in places like Egypt (http://www.google.com/hostedne...a1b4b9a.f1)




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Brandon Smith
...
written by Brandon Smith , March 23, 2012

@NFE

I think you need to read your own link:

"Petroleum Minister Mohammed Abdullah Ghorab said the situation was due to a lack of confidence by consumers, insisting that petrol stocks are sufficient.

Amr Mustafa, deputy head of the General Petroleum Authority, said smugglers control 15 to 20 percent of petrol products available on the market, the independent daily Al-Masry Al-Youm quoted him as saying."

Also, any country in the midst of ongoing political revolution is going to have trouble with importing of goods. If peak oil is a problem, then by your logic, it seems to only be affecting Egypt. Not very rational....

The U.S. had the same problem back in the late 70's due to political strife in Iran. Was THAT "peak oil"? No. It was economic and social turmoil.

Also, by your logic, we will NEVER reach peak oil, if demand is magically falling perfectly in tandem with supply so that supply ALWAYS meets demand. Again, not very rational...

All you've proven so far is that peak oil arguments rest on a house of cards. Where are the great oil shortages that you guys are always talking about? Any countries NOT in the middle of extreme social breakdown due to revolution?

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@Brandon
written by NFE , March 23, 2012

You brought up the phrase "Peak Oil", not me... but since we're discussing it.. I think you'll find it's defined as the time when production capacity cannot reach previously attained levels.... it's not a resource problem, per se, it's a rate of extraction problem.

You can also find petrol lines in Malawi and Nigeria, by a very simple Google search, so it's by no means limited to Egypt.

Part of the 1970's problems in the US were indeed related to peak oil - as production capacity in the Lower48 reached a peak in the very early part of the decade. It remains to be seen whether the much fabled Bakken shale can recapture the peak, but, given the hideous decline rates in Bakken wells, it seems unlikely - time will tell.

Anyhow, you are clearly very set in your opinions, as indeed am I, so I see little point in continuing the discussion. We must agree to disagree


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Brandon Smith
...
written by Brandon Smith , March 23, 2012

If the 1970's gas shortage was due to peak oil, then how has U.S. demand been met since then?

Changing the definition of peak oil to suit the conditions of the moment is kind of like global warming alarmists changing their slogan to "climate change".

Malwari and Nigeria? Also countries with enourmous social and political strife.

The bottom line is, there are, at least for now, no legitimate shortages due to LACK OF SUPPLY through most of the world, unless you happen to be in a country where the ample supply is being prevented from entering the borders by extreme political conditions.

The supply side argument is a distraction away from the real culprit of oil inflation; the devaluation of the Dollar. Could we reach peak oil someday? Maybe. But not today, and not for many years to come. Our concern then should be the hyperinflation of our currency, which is the ONLY problem not being discussed by the mainstream.

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Peak Oil
written by Mark V , March 23, 2012

I remember Peak Oil back in the 1970s. We are repeating that decade's set of crises almost exactly: supposed oil shortages (It was the end of the oil based economy! The world is ending!), war in the middle east, environmental crises (running out of everything, pollution will destroy the world), and of course massive budget deficits and inflation and high unemployment, which were headline news daily. This time, there is only one difference: We will not be able to stop the crash of the dollar by jacking up interest rates to 20%, which means the dollar is toast. Bernanke cannot act like Volcker. Is oil running out? Yes, constantly, and it has been for over a hundred years. Yet its price in the stable currency, gold, is still about 2 grams per barrel, as it has been for decades: In 1971, oil was $3.00/bbl and gold was $35/31.1grams, so the price of oil was 2.66 goldgrams. Today, oil is $106/bbl and gold is $1665/31.1grams, so the price of oil is 1.98 goldgrams. Oil is actually less expensive now than it was 40 years ago.
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the winner is?
written by JRV , March 23, 2012

i've gone back and forth on my belief in peak oil. after reading this thoughtful exchange I think I side with Brandon.

I think it is hard to argue with the premise that drastically increasing dollars in circulation increases the price of goods and services.

Maybe the increase in oil prices is a combination of debasement and peak oil but debasement makes more sense and is more provable (i don't believe "official numbers" about peak oil or any other gov reports for that matter).

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The price of oil
written by Mark V , March 23, 2012

The price of a barrel of oil, in goldgrams, can be found at the "priced in gold" website; search for the "crude-1950" chart. The short term fluctuations reflect supply and demand dynamics of the oil market. Long term, the price is stable. This contrasts with the long term price in dollars, which follows the increase in M1, the base money supply, which is available here: http://research.stlouisfed.org...NS?cid=124

The price of oil in several currencies, including gold, can be found by searching Youtube for "golds purchasing power in terms of oil".

Some day, the price of oil will become higher than the price of a competing energy source (or sources) at which time oil will be replaced as the prime energy source. When that happens, no one can know until after the fact.

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...
written by CM Dutch , March 23, 2012

By the US government and other estimates US have the world largest know reserves. http://politicalvelcraft.org/2...lds-obama/

To be held hostage by a foreign policy around oil is beyond crazy.

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won't end well
written by zzz , March 24, 2012

Cushing is awash in oil. The pipeline is being built to a port. Coincidence? Domestic supply and demand is not functioning when commodity supply can be withheld and eventually moved abroad to a more prosperous consumer. Same thing is happening with food, and it all gets back to investment bankers with trillions while the rest of the domestic economy starves.



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Prius C is just the beginning
written by b-man , March 24, 2012

Demand for Oil might go up slightly because of india and china, but its about to go into steady decline elsewhere.

Just look at the new Prius C, it sold 150,000 units in THREE DAYS in Japan. Its a 4-door hybrid that gets over 50mpg and costs less than 20k. It does all of this without lithium batteries. Within two years ALL prius models will have lithium batteries and plug in options. This means that many of the millions of these types of vehicles which will sell into the tens of millions beginning this year through 2020. They won't just get better mileage, the majority of plug in vehicles actually use 90% less fuel because they get addicted to plug in power.

Its beginning to happen and will snowball. Peak oil demand is behind us. Good riddance.

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Excellent article from Brandon
written by Concrete man , March 24, 2012

I am not entirely versed (interesting debate between Brandon and NFE) on the puke oil debate but your article makes a lot of sense to me. Even if there is peak oil, the amount of lying and manipulation in the global economic system largely makes it a moot point. Had we not put all those trillions into wars for Izrayhell could we not have developed MIT's Dan Nocera's water cracking technology solar system for every house in the world to be powered on two gallons of water per day? Huh?
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Peak Fiat
written by soggy bottom boy , March 24, 2012

The world is awash in currency. Peak currency means that supply has most certainly exceeded demand. Real assets, real wealth has simply been consolidated.
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Not all...
written by Tracy j , March 25, 2012

"....value relative to a basket of world fiat currencies, ALL of which also happen to be in decline"

Not the Australian Dollar.

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Brandon Smith
...
written by Brandon Smith , March 25, 2012

@Tracy

The Dollar Index is measured against these currencies:

EUR, JPY, GBP, CAD, CHF and SEK

The Australian Dollar (AUD) is not included in the basket. If it was, the dollar index would be looking far worse than it does right now.

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The US is captive to the Israel Lobby more than the Oil Lobby
written by Concrete man , March 25, 2012

Not that anyone is stating this but just to clarify, read James Petras book (or articles on the net), The Power of Israel in the United States. In that book and in other essays he offers irrefutable proof that US wars in the middle east are not for oil but at the beheast of the Israel Lobby. The IL has so much power in the US they harm US interests in the middle east, far from helping it gain energy security. I could ramble on but many people believe US wars are for oil or resources, and of course those are part of it, but the overriding aspect in the Mid East is to kiss Izrayhell's fat arse.
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No Oil B.S.
written by BlueyBlogger , March 25, 2012

America truly makes me laugh, better than any comedy show, better than any comedy movie from Hollywood too.
There is the second largest oil shelf sitting right under 13 States of the US, and nobody is doing anything about it.
America the Greedy, is too busy taking everyone else's oil, and that includes Australia and the North Sea, and using such things as "shortages" or "Peak Fuel" titles to stymie the people, and because of the fluoride in the water, the stupid bloody people believe it.
America, you will be the downfall of the Earth.
A = No, MERI = Mercy. CA = Sheep. (Latin)
I rest my case.

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This blog site is very telling
written by Pierre , March 26, 2012

Other than NFE who is attempting to educate, you others especially Brandon are so ignorant it makes me cringe.
America is no longer the majority consumer of oil. Duh!
All of you need to get out and travel instead of watching porn as all statistics of american males' activities suggest :^)
The Bakken may have 10 billion barrels of extractable oil if we're lucky. The US uses 19 million barrels daily. This works out to 526 days of supply. No matter how you attempt to discredit NFE with your illogical arguements, we are going to see shortages soon. What gives me consulation is that all of you will suffer from your ignorance while NFE and I are going to prosper, as I already have since 2004 from our oil price spikes.

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Brandon Smith
...
written by Brandon Smith , March 26, 2012

@Pierre

You seem to have missed the entire point of the article, which is not surprising since you are apparently too busy spewing adolescent drivel rather than thinking clearly.

Firstly, the numbers and information I provided are for GLOBAL oil consumption, not just the U.S. If you had read the full article, perhaps you would have realized this.

Secondly, back in the 1980's the peak oil cult claimed that U.S. production was tapped. Yet...

From the Institute for Energy Research:

"The answers lie in the data. In 1980, official estimates of proved oil reserves in the United States stood at roughly 30 billion barrels. Yet over the past 30 years, more than 77 billion barrels of oil have been produced here. In other words, over the last 30 years, the United States produced more than two and a half times the proved reserves we thought we had available in 1980. Thanks to new and continuing innovations in exploration and production technology, there’s every reason to believe that today’s estimates of reserves are only a fraction of what will be produced and delivered tomorrow—not only here in the United States, but across the entire North American continent."

Peak Oilers to this day keep claiming that the oil will run out any year now, and consistently make assumptions on capacity that have been entirely wrong.

Again, SHOW ME WHERE THE SHORTAGES ARE? The purpose of the article is to show that the increase in gas price is NOT due to supply shortages TODAY. You can try to look into your little peak oil crystal ball until your eyes bleed, but in the end, you have no idea what is going to happen in the near future, let alone the distant future, when it comes to petroleum supply.

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to the site
written by 4ittowork , March 27, 2012

Thank you for providing the vehicle for raw exchange. Seems it usually best reveals
the Value of the argument put forth.
The 'Biggest Picture' is
usually argued with most strongly,
it seems.

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...
written by Richard Bee , March 27, 2012

What complete garbage. PLEASE look at 'real' history and understand how the world has been manipulated for profit by the Rockerfeller family. The ORIGIN OF OIL would be a good place to start (google 'Fletcher Prouty' for a reasonable/rational explanation). The second thing to understand is Rockerfellers 'perverted genius' in having successive generations of scientists and educators buy-into and support his blatant lies. The TRUE COST OF OIL is mere pennies per gallon. There is NO PEAK OIL 'crisis'. You have all been out-manouvered and out-thought for his profit by a man who died generations ago because of your blind ignorance. Maybe the question that should be asked is "what is happening to the thousands of PROVEN and PATENTED alternative energy solutions that have been sequestered by BIG OIL to protect their thievery and monolply". The people of the world are being led around by the nose like farm animals, into and out-of wars that decimate and murder innocents, for the profit of BANKERS (including 'The Rockerfellers') to support and continue a blatant lie. ALL FOR PROFIT. Yet you are ALL happy ignorant SHEEPLE thinking that your opinions of good and bad really matter. WAKE UP. FIND THE TRUTH. STOP THE SCAM. OIL DOES NOT BELONG TO CORPORATIONS UNLESS YOU ALLOW IT.
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written by LeCeja , March 30, 2012

The demise of the dollar is a planned process. It is obvious, the plan is to replace the dollar with a "world currency", probably IMF SDR's or something like it.

Anyway, oil is NOT the scarce commodity that the bankers (who are the majority owners in oil companies) want us to believe. New discoveries are being made constantly, but they somehow never make their way onto the "known reserves" balance sheet.

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Why is natural gas so cheap?
written by guardia , April 27, 2012

If as you say the price of oil were caused by inflation, dollar evaluation, or whatever, why is natural gas so cheap? I mean, if we have plenty of supply for both oil and natural gas, what's causing the enormous difference in price? Surely the dollar doesn't look like it's getting devaluated in terms of natural gas!
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written by trimor.ph , May 29, 2012

i like the way you think dude. meet your maker, give me the oil, i need to fill my hummer. good going..

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