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Why The Shale Oil “Miracle” Is Becoming A “Debacle”

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Why The Shale Oil “Miracle” Is Becoming A “Debacle”

Dispelling the magical thinking behind the hype

Energy is everything. 

This is an amazingly important concept. Yet it’s almost universally overlooked.

Sometimes it’s hard to appreciate the magical role energy plays in our daily lives because most of what we experience is a derivative of it. The connection is hidden from direct view.  Because of this, most people utterly fail to detect or appreciate the priceless and irreplaceable role of high net-energy fuel sources (such as oil and gas) to our modern lifestyle.

With high net-energy, society enjoys increasing complexity and technological advances. It’s what enables us to pursue massive goals like desalinating billions of gallons of seawater, or going to Mars.  But without high net-energy fuel sources, our capabilities quickly regress to those of decades — or even centuries — past.

Which is why understanding where we truly are in the ‘net-energy story’ is so incredibly important. Is the US on the cusp of being “energy independent” from here on out? Is the “shale miracle” ushering in a glorious new ‘boom’ era that will vault America to unprecedented prosperity?

No. The central point of this report is that the US is deluding itself when it comes to energy abundance (generally) and oil (specifically).

Yet that’s not what we hear from the cheerleaders in the industry or in our media. From them, we hear a silver-tongued narrative of coming riches — a narrative that contains some truth, some myth, and a lot of fantasy.

It’s those last two parts — the myths and fantasies — that are going to seriously hurt many investors, as well cause a lot of extremely poor policy and investment decisions.

The bottom line is this: The US shale industry resembles a fraudulent Ponzi scheme much more so than it does any kind of “miracle”.

…click on the above link to read the rest of the article…

The Bizarre Explanation For Why The U.S. Has Avoided Bombing ISIS Oil Wells

The Bizarre Explanation For Why The U.S. Has Avoided Bombing ISIS Oil Wells

What - Public DomainWhy hasn’t the U.S. bombed the oil wells that ISIS controls into oblivion by now?  Would you believe that it is because the Obama administration “didn’t want to do environmental damage”?  Former Deputy Director of the CIA Michael Morell has publicly admitted that we have purposely avoided damaging the main source of income for ISIS, and his explanation for why we were doing this is utterly bizarre.  But at this point what could the Obama administration say that would actually make sense?  Everyone now knows that ISIS has been making hundreds of millions of dollars selling oil in Turkey, and that this has been done with the full knowledge and complicity of the Obama White House.  This is potentially the biggest scandal of the entire Obama presidency, and yet so far the Republicans have not jumped on it.

If you or I even gave five bucks to ISIS, we would be arrested and hauled off to Guantanamo Bay.  And yet Barack Obama is allowing ISIS to funnel massive quantities of oil through our NATO ally Turkey, and he is not doing anything to stop this from happening.  It is a betrayal of the American people that is so vast that it is hard to put into words.

By now, virtually everyone on the entire planet knows exactly what is going on.  For example, Iraq’s former National Security Adviser Mowaffak al-Rubaie shared the following on his Facebook page on Saturday

“First and foremost, the Turks help the militants sell stolen Iraqi and Syrian oil for $20 a barrel, which is half the market price.”

Until Russia started bombing the living daylights out of them, an endless parade of trucks carrying ISIS oil would go back and forth over the Turkish border completely unmolested.

…click on the above link to read the rest of the article…

Olduvai IV: Courage
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Olduvai II: Exodus
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