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How Much Human Labor Equals One Gallon Of Gasoline?
How Much Human Labor Equals One Gallon Of Gasoline?
Most people are amazed to discover the enormous amount of energy contained in a gallon of gasoline. However, this isn’t surprising because the public seems to take for granted the ENERGY that drives the entire economy, especially oil. And, oil is the most crucial energy supply vital for our Just-In-Time-Inventory-Supply-Chain System. Without oil, the entire global economy would grind to a halt.
In my recent video, The Tremendous Hidden Value In Every Silver Coin, I discussed why the precious metals act as a store of “Energy Equivalent Value.” While many people may disagree with this analysis, our complex economy is nothing more than the trading of energy, in one form (goods) or another (services).
Here’s an example. Skechers USA, which sells footwear, enjoyed a 7% margin of profit in the first three quarters of 2019. The company reported $287 million of net income on $3,889 million in revenues. Thus, the total cost of Skecher’s footwear was 93%. While the public is purchasing shoes made by Skechers, I can assure you that the overwhelming majority of the cost was associated with the ENERGY consumed in the entire process. Energy also includes the amount of Human Labor, Materials, Capital Expenditure, etc. Why? Because the materials used in Skecher’s shoes were a result of the tremendous amount of energy in all forms and stages in the manufacture of the materials.
So, when someone plops down $75 to purchase a pair of shoes, the overwhelming majority of that price is a result of all the ENERGY consumed in all forms and all stages. Thus, our ECONOMY is nothing more than the trading of energy… that ends up in one form (goods) or another (services).
THE RENEWABLE GREEN ENERGY MYTH: 50,000 Tons Of Non-Recyclable Wind Turbine Blades Dumped In The Landfill
THE RENEWABLE GREEN ENERGY MYTH: 50,000 Tons Of Non-Recyclable Wind Turbine Blades Dumped In The Landfill
Funny, no one seemed to consider what to do with the massive amount of wind turbine blades once they reached the end of their lifespan. Thus, the irony of the present-day Green Energy Movement is the dumping of thousands of tons of “non-recyclable” supposedly renewable wind turbine blades in the country’s landfills.
Who would have thought? What’s even worse, is that the amount of wind turbine blades slated for waste disposal is forecasted to quadruple over the next fifteen years as a great deal more blades reach their 15-20 year lifespan. Furthermore, the size and length of the newly installed wind turbine blades are now twice as large as they were 20-30 years ago.
(graphic courtesy of Ahlstrom-Munksjo.com)
Honestly, I hadn’t considered the tremendous amount of waste generated by the so-called “Renewable” wind power industry until a long-term reader sent me the link to the following article, Landfill begins burying non-recyclable Wind Turbine Blades:
Hundreds of giant windmill blades are being shipped to a landfill in Wyoming to be buried because they simply can’t be recycled. Local media reports several wind farms in the state are sending over 900 un-reusable blades to the Casper Regional Landfill to be buried. While nearly 90 percent of old or decommissioned wind turbines, like the motor housing, can be refurbished or at least crushed, fiberglass windmill blades present a problem due to their size and strength.
“Our crushing equipment is not big enough to crush them,” a landfill representative told NPR.
Prior to burying the cumbersome, sometimes nearly 300-foot long blades, the landfill has to cut them up into smaller pieces onsite and stack them in order to save space during transportation.
…click on the above link to read the rest of the article…
GOLD & SILVER PRICE UPDATE: And What Most Precious Metals Analysts Are Missing
GOLD & SILVER PRICE UPDATE: And What Most Precious Metals Analysts Are Missing
The gold and silver prices continue to consolidate since reaching new five-year highs in the summer. Gold is nearly $100 lower from its high of $1,566 on September 4th, while silver is down more than $3 from its $19.75 peak on the very same day. Thus, gold is down 6% while silver is off by more than 15% from the peak summer prices.
However, some precious metals analysts continue to harp on the “Price Hammering” or “Manipulated” knock-down of the metals when they didn’t complain when both gold and silver increased 23% and 38% respectively from their lows in just three months. I bring this up again because the time spent fixated on the “supposed” precious metals manipulation will only amount to increased “FRUSTRATION.” Rather, I believe it’s better to focus on understanding the underlying “ROOT” fundamentals of the market and the impact on the future value of gold and silver.
For example, I no longer spend much time at all, looking at the Political Circus in Washington, DC. It’s a complete waste of time. Americans are either brainwashed by propaganda from the LEFT or the RIGHT into believing their “SCHMUCK” leader is better than the other. So, trying to debate Americans who are proud proponents of the LEFT or RIGHT is similar to wasting time on precious metals manipulation.
With all the articles claiming Gold and Silver Manipulation, why hasn’t anyone brought up the fact that gold and silver are now trading above their total primary cost of production (+$200 for gold & +$1-2 for silver)?? It would be one thing if gold were trading at $750 and silver at $10. Then, the “Manipulation” mantra would carry more weight and make sense. However, these two precious metals are still trading above their average cost of production, even after consolidating lower over the past three months.
BIGGEST BREAKTHROUGH IN ENERGY: Petroteq Losses Nearly 90% Of Its Value Since Last Report
BIGGEST BREAKTHROUGH IN ENERGY: Petroteq Losses Nearly 90% Of Its Value Since Last Report
Every day a new sucker is born. That’s precisely why companies like Petroteq exist. Since I exposed Petroteq back in March 2018, the company has lost nearly 90% of its value. However, that hasn’t stopped the company from issuing new stock and racking up millions of dollars in funds to keep the scam alive.
I call Petroteq… the GIFT that keeps on TAKING.
Over the past year and a half, I have received several emails from followers or individuals who saw my article and asked if Petroteq was a good investment. I gather my article published on March 16th, 2018 didn’t provide enough information to “Educate” the individual on why Petroteq was a crappy company.
So, I decided it was best to do an update or PART 2 on the disaster called Petroteq.
Again, back in March, I posted this article on Petroteq, BIGGEST BREAKTHROUGH IN ENERGY: Investor Warning
If you haven’t read the article, I would recommend it. I am not going to rehash the information that I wrote back in March 2018, but what I am going to do is to show that this company continues to BAMBOOZLE INVESTORS even though the stock price is heading to ZERO.
I first came across the company from an article “TEASED” on Oilprice.com about a new technology that claims to produce oil at $20 a barrel.
At first, I didn’t know what to think about this company because why would the editor in chief at Oilprice.com, James Stafford, publish this on their website if the company wasn’t legit? However, after a bit of research, I found out that Petroteq was nothing more than your typical RUN-OF-THE-MILL Stock scam.
…click on the above link to read the rest of the article…
GOLD & SILVER UPDATE: Setting Up For The Next Leg Higher In 2020
GOLD & SILVER UPDATE: Setting Up For The Next Leg Higher In 2020
The Day of Reckoning is coming, and it won’t be pretty for the overall markets. While the Fed liquidity has pushed the major U.S. indexes to new highs, the underlying fundamentals in the economy continue to deteriorate. Without the record amount of Fed QE and Repo Operations, the market and economy would have gone into a tailspin in 2019.
Now, to give credit where credit is due, the term, “The Day of Reckoning” was the title from the Northman Trader’s most recent public article. What I like about Sven Heinrich’s work (the Northman Trader), is his ability to use technical and fundamental analysis to provide “PRICE DISCOVERY” in the markets.
Unfortunately, we don’t have price discovery anymore due to the Fed and Central bank decade-long propping up of the markets. This chart from the Northman Trader shows how the Fed’s interventions have come in to support the markets at key technical levels:
What is quite interesting more recently (2019) is the substantial Fed’s rate cuts, QE, and Repo Operations at a time when there isn’t a downturn in the U.S. economy. When the Fed started QE1 in 2009, the stock market had crashed to a low, and the economy was in a severe recession. The Fed continued to support the economy and markets with QE2, TWIST, and QE3 into 2013. Again, these Fed interventions took place during a struggling economy.
Today, the Fed is pulling out all the FIREPOWER when the markets are at new highs, and the economy is still rolling along nicely. This is a recipe for DISASTER at some point. Furthermore, the energy market that is one of the driving forces of the U.S. economy is in serious trouble.
…click on the above link to read the rest of the article…
The U.S. Shale Industry Hit A Brick Wall In 2019
The U.S. Shale Industry Hit A Brick Wall In 2019
The Great U.S. Shale Industry Machine is finally running out of steam. What looked very promising for the shale industry in 2018 seems incredibly bleak this year. And, if the situation doesn’t turn around quickly for the shale industry, 2019 might turn out to be the year that production ultimately peaks in the United States.
There several factors that have negatively impacted the U.S. Shale Industry in 2019; the compounded annual decline rate, the massive debt–inability for shale companies to raise money, and the stunning amount of new wells necessary to increase overall production. While shale experts are knowledgeable of the typical 60-70% first-year decline rate of shale wells, not much is mentioned about the “compounded annual decline rate.”
The chart above shows that as overall Shale oil production increases, the decline curve becomes steeper. U.S. shale oil production in the top four fields hasn’t increased all that much because the nearly 6,000 wells brought online so far this year had to offset the stunning 2 million barrel per day decline from the production in 2018.
The next series of charts, from Shaleprofile.com, will show why the U.S. Shale Industry has hit a brick wall. The first chart shows the number of wells added each year in the top four shale fields:
The four top U.S. shale fields are the Bakken, Niobrara, Permian, and Eagle Ford. In 2017, the shale industry added 7,636 wells, 9,953 wells in 2018, and 5,924 wells by August 2019. According to Shaleprofile.com, there are still 82 wells not accounted for yet in 2019. So, the total for the first eight months of 2019 is 6,006.
If we look at the Well Profiles part of the chart, we can clearly see that when the increase in the number of wells in 2015 and 2016 started to taper off, overall production plateaued and declined.
…click on the above link to read the rest of the article…
Greed Driving Broader Markets Today, Fear To Spark Precious Metals Fireworks In The Future
Greed Driving Broader Markets Today, Fear To Spark Precious Metals Fireworks In The Future
With the Fed propping up the entire market and extreme greed driving the stock indexes to new highs, investors have lost interest in the precious metals, for the moment. However, I am not surprised. What is taking place in the overall markets is precisely what I forecasted back in September.
After gold and silver broke out of key resistance levels in the summer and then moved to new highs for 2019, a consolidation period would likely follow before the precious metals began the next leg up. I mentioned this in my last Youtube precious metals update, Silver Price Update & End Of Mining Era, published on September 21st.
In that video update, I posted this daily chart on silver:
I stated that silver would probably correct back down to these price levels before setting up for the next phase higher. Today, silver fell to a low of $16.71 in the U.S. markets ($16.58 in overnight markets), so it seems to be heading down to the $16.20 level. Here was the silver price on stockcharts as of Thursday, November 7th.
I believe silver will fall back to that $16.20 level, according to how traders are now anticipating the market. Again, I am not saying that silver should go down to $16.20, especially with all the Fed money printing and Repo-madness, but this is how traders are viewing the silver market. Why? Because the Fed is now buying $60 billion a month in Treasuries, the same as the U.S. Military monthly spending budget, it has given the market another FALSE BUYING SIGNAL. Thus, GREED in the market has gone back up to a record “Extreme Level.”
…click on the above link to read the rest of the article…
TROUBLE AT MIGHTY EXXONMOBIL: Record Number Of Shale Wells While Permian Oil Production Remains Flat
TROUBLE AT MIGHTY EXXONMOBIL: Record Number Of Shale Wells While Permian Oil Production Remains Flat
There’s trouble brewing in the U.S. largest oil company while most investors remain in the dark. ExxonMobil added a record number of wells in the Permian during the first three quarters of 2019, only to see the company’s oil production plateau. What a difference in a year when Exxon bragged that its Q4 2018 Permian oil production had surged 93% from the same period in 2017.
However, an investor reading ExxonMobil’s latest presentation would believe the company’s Permian oil production continues to increase significantly by the announcement that output is up 72% since Q3 2018.
Let me explain how these oil companies “BUFFALO” investors with the numbers.
First, the nice chart above is stated in Koebd, or 1,000 barrels of oil equivalent per day. Exxon’s Permian production shown in that chart includes natural gas. So, unless you do a bit of digging and research, the typical investor will believe that Exxon’s Permian oil output continues to surge higher in 2019.
Second, while Exxon’s Permian production continues to increase in 2019, the majority of the gain is from natural gas. According to Shaleprofile.com, Exxon’s Permian oil production rose slightly since January, but natural gas was the clear winner.
(charts from Shaleprofile.com)
Third, ExxonMobil added 133 wells from Jan-Aug 2018 to increase overall Permian oil production by 84%. However, when ExxonMobil added 149 wells from Jan-Aug 2019, oil production only increased by a mere pittance of 3% during the same period. The reason for the plateauing of Exxon’s Permian shale oil production has to do with the massive decline rate taking place in its 2018 production.
We can see this occur in glorious 3D Technicolor in the chart below:
…click on the above link to read the rest of the article…
More Than 50% Of The Mighty Permian’s 2018 Oil Production Has Vaporized
More Than 50% Of The Mighty Permian’s 2018 Oil Production Has Vaporized
As dark clouds gather on the financial horizon, big trouble is brewing in the U.S. Shale Oil Industry. While most Americans are focused on the Mainstream media’s coverage of the ongoing Washington D.C. circus, the real threat to the domestic economy lies in the country’s oil heartland. And, if we look at what is taking place in the United States’ largest shale oil region, the signs are troubling.
The Permian Oil Basin in Texas and New Mexico accounts for nearly half (46%) of the total U.S. shale oil production. According to the data from Shaleprofile.com, Permian’s oil production peaked in May at 3.43 million barrels per day. Due to the massive decline rate, production in the Permian has stalled this year.
The chart below shows the Permian oil production declining even though more wells continue to be brought online. Unfortunately, there aren’t enough wells being added to offset the tremendous decline rate. You will notice how quickly the oil production that was added in 2018 (Light Blue color) has declined in just half a year:
To give you a better idea of the huge decline rate in Permian oil production, let’s only focus on 2018 and 2019 in the following charts. But, before doing so, I wanted to let everyone know that this information would not be possible without the data from Shaleprofile.com. I highly recommend that you check out Shaleprofile.com and consider subscribing to the service if you want to be able to access more details in the shale industry. It’s worth its weight in gold.
Let’s look at the Permian oil production just for 2018. Permian oil production brought on in 2018 peaked in December at 2,136,000 barrels oil per day (bopd) or 2,136K bopd, and declined to 1,056K bopd by July 2019. That is a STUNNING 50.5% decline in just seven months:
…click on the above link to read the rest of the article…
More Black Swans Arrive As U.S. Debt Balloons $800 Billion In Two Months
More Black Swans Arrive As U.S. Debt Balloons $800 Billion In Two Months
The rate at which black swans are showing up in the world should scare the hell out of people. But, unfortunately, everyone seems to be lost in the highly complex technology of I-phones, computers, social media, and the telly to notice that something is definitely wrong. The current situation reminds me of a famous scene in the Monty Python movie, The Holy Grail, where a guy is banging a bell and saying, “Bring out your dead.” Let me explain.
The scene in the movie takes place in England or Europe during the Black Plague, and due to the staggering amount of deaths, carts were used to pick up the bodies throughout the city. Yes, this is indeed a macabre subject matter, but Monty Python takes a serious situation and turns it into a comedy. However, the point I am trying to make is this… death is a very tragic and emotional part of life that impacts family members, friends, and coworkers. But, in this Monty Python scene, there is so much death, that it almost becomes numb to everyone.
And, that is precisely what I see now in the public. There are so many warning signs, or black swans, that no one seems to notice. Everyone has become… QUITE NUMB to it all. So, when the U.S. Government adds $814 billion of new debt in a little more than two months, the public yawns as this is no big deal:
Since the beginning of August, the total U.S. federal debt has increased from $22,023 billion to $22,837 billion. Thus, the U.S. public debt has increased by nearly 4% in just two months! Here is the debt table from TreasuryDirect.gov website since August 1st:
…click on the above link to read the rest of the article…
More Than 50% Of The Mighty Permian’s 2018 Oil Production Has Vaporized
More Than 50% Of The Mighty Permian’s 2018 Oil Production Has Vaporized
As dark clouds gather on the financial horizon, big trouble is brewing in the U.S. Shale Oil Industry. While most Americans are focused on the Mainstream media’s coverage of the ongoing Washington D.C. circus, the real threat to the domestic economy lies in the country’s oil heartland. And, if we look at what is taking place in the United States’ largest shale oil region, the signs are troubling.
The Permian Oil Basin in Texas and New Mexico accounts for nearly half (46%) of the total U.S. shale oil production. According to the data from Shaleprofile.com, Permian’s oil production peaked in May at 3.43 million barrels per day. Due to the massive decline rate, production in the Permian has stalled this year.
The chart below shows the Permian oil production declining even though more wells continue to be brought online. Unfortunately, there aren’t enough wells being added to offset the tremendous decline rate. You will notice how quickly the oil production that was added in 2018 (Light Blue color) has declined in just half a year:
To give you a better idea of the huge decline rate in Permian oil production, let’s only focus on 2018 and 2019 in the following charts. But, before doing so, I wanted to let everyone know that this information would not be possible without the data from Shaleprofile.com. I highly recommend that you check out Shaleprofile.com and consider subscribing to the service if you want to be able to access more details in the shale industry. It’s worth its weight in gold.
Let’s look at the Permian oil production just for 2018. Permian oil production for 2018 peaked in December at 2,136,000 bopd or 2,136K bopd, and declined to 1,056K by July 2019. That is a STUNNING 50.5% decline in just seven months:
…click on the above link to read the rest of the article…
SILVER PRICE UPDATE: Including End Of A Silver Mining Era
SILVER PRICE UPDATE: Including End Of A Silver Mining Era
Since my last video update, the silver price has consolidated to a lower level. While I wasn’t surprised to see silver continue to correct, I do believe its only temporary before it begins a new leg higher. And, if we look at the COT Report for silver, there are some positive signs going forward.
But, before I provide a preview on my newest video update, Silver Price Update & End Of A Silver Mining Era, I wanted to clarify my position on “technical analysis.” There seems to be a large group of precious metals investors that have a negative KNEE-JERK reaction when I post some charts on technical analysis, stated several reasons why it’s a waste of time to do it when the market is rigged or controlled by the bullion banks (JP Morgan), the Fed and central banks.
While new and long-term followers are free to post any comments they desire about the pros or cons of technical analysis, my reason for doing so is to show what TRADERS ARE LOOKING AT and what they expect going forward. Traders, hedge funds and large institutions all study and follow technical analysis. Right now, they are the leading drivers of the silver price.
However, technical analysis patterns will not provide the ultimate FUNDAMENTAL VALUE for silver when the Fed and Central Banks lose control of the Fiat Monetary system and economy. Yes… at that point, technical analysis won’t matter. BUT, we aren’t there yet.
So, instead of precious metals investors becoming frustrated because they believe the silver price should only go IN ONE DIRECTION… UP, I am just showing how silver trades in the current system. Thus, if it falls back down to a certain key technical level before moving higher, you CAN TAKE IT OR LEAVE IT.
…click on the above link to read the rest of the article…
Why Silver Is Better Than Gold
Why Silver Is Better Than Gold
While the surging gold price has received most of the spotlight in the market, silver will outperform the king monetary metal over the longer term. Key fundamental factors make silver the more attractive asset and investment to own versus gold when we look closely at the data. However, that doesn’t mean precious metals investors shouldn’t own gold. Investors need to own both precious metals, but I believe silver will provide better returns than gold in the future.
Now, there is this notion put forth by many precious metals analysts that central banks will be forced, at some point, to back their currencies by gold. Thus, the idea is that gold will reset at a much higher price. While that is a possibility, backing debt-based currencies with gold will not solve our coming energy crisis. And, let me tell you, it’s an energy predicament that we have no real solution.
You see, it doesn’t really matter if we back fiat money with gold. The REAL ISSUE has always been ENERGY. The massive increase in debt and derivatives are a symptom of the Falling EROI (Energy Returned On Investment) of oil. Basically, while gold may solve certain issues in regards to “Confidence” in money, it doesn’t fix our energy problems.
I touched on this briefly in my newest video, Why Silver Is Better Than Gold. However, most of the video explains new charts that show fundamental factors on why silver is a better investment than gold as well as some key price levels for the short term.
One of the more important charts in the video shows the amount of “Identifiable” physical gold and silver investment stocks. Interestingly, according to the data from the World Gold Council and the World Silver Surveys, there is just about the same amount of physical gold investment as there is silver.
…click on the above link to read the rest of the article…
TROUBLE AT THE BAKKEN: Oil Production Finally Peaking?
TROUBLE AT THE BAKKEN: Oil Production Finally Peaking?
Is the mighty Bakken Shale Oil Field finally peaking? Well, according to the data from the folks at the North Dakota Department of Mineral Resources, oil production in the Bakken has been flat for the past six months. And, to make matters worse, production has been flat even though oil prices increased from a low of $42 in January to the mid $60’s in April.
So, something seriously wrong is going on in North Dakota. What a difference in the Bakken’s recent oil supply compared to the field’s heyday when production surged from 300,000 barrels per day in 2011 to over 1.1 million barrels per day in 2014. Furthermore, the oil price the shale companies in the Bakken are receiving is now $48 a barrel versus the West Texas Intermediate price of $57.
If we look at the past seven months, the North Dakota Bakken has only added 36,000 barrels per day (bd) of new oil production compared to 114,000 bd during the same period last year:
As we can see in the chart above, the output from Sep 2017 to Apr 2018 enjoyed an upward trend, while the Sep 2018-Apr 2019 has been flat. You can see this better in Enno Peters chart from ShaleProfile.com. I highly recommend followers check out his site as he provides updates on the top shale oil and gas fields in the United States using state data from over 100,000 wells.
These charts from ShaleProfile.com show the annual change production by different colors. Here we can see that Bakken oil production increased steadily from 2011 to 2014, plateaued in late 2014 and 2015, declined in 2016, raised in 2017-2018, and has plateaued once again in 2019. The likely culprit for the plateau in Bakken oil production has to do with the lower oil price and the reduction of investment funds available to the shale companies that continue to spend more money than they make.
…click on the above link to read the rest of the article…
