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Hogwash
Hogwash In the early 1980s, to Margaret Thatcher’s annoyance, union reps and managers at the steelworks in Port Talbot agreed a strategy to save the plant. As a result, Port Talbot was spared the post-industrial blight visited upon most of Britain’s ex-industrial towns. Now in private hands, and despite periodic crises, the steelworks employs some […]
Overcapacity / Oversupply Everywhere: Massive Deflation Ahead
Overcapacity / Oversupply Everywhere: Massive Deflation Ahead The price of a great many assets will crash, out of proportion to the decline in demand. Oil is the poster child of the forces driving massive deflation: overcapacity / oversupply and a collapse in demand. Overcapacity / oversupply and a collapse in demand are not limited to the […]
Peak Oil: One-Sentence Problem-Solving
Peak Oil: One-Sentence Problem-Solving As is still the case—unfortunately, for all of us—there remains a sizeable number of individuals, organizations, and other associations determined at all costs [literally] to preserve the primacy of fossil fuels to power us into the future. Facts: good when they can be massaged to fit the partial-truth narrative required to […]
Saudi, US Oil Inventories Hit Record High as Demand Fizzles
Saudi, US Oil Inventories Hit Record High as Demand Fizzles The amount of oil in storage globally, not including the various “strategic petroleum reserves” in the US, China, Europe, Japan, and other locations, has grown to staggering proportions this year, as oversupply drowns out tepid demand. In the US, oil storage is seasonal. A big […]
U.S. Oil Glut An EIA Invention?
U.S. Oil Glut An EIA Invention? In the latest weekly production data from the EIA, on the back of recent March revisions, the U.S. managed to post a 76,000 barrel per day increase in the lower 48. Production from Alaska fell by 61,000 barrels per day, putting overall U.S. output 15,000 barrels per day higher for the […]
Why We Have an Oversupply of Almost Everything (Oil, labor, capital, etc.)
Why We Have an Oversupply of Almost Everything (Oil, labor, capital, etc.) The Wall Street Journal recently ran an article called, Glut of Capital and Labor Challenge Policy Makers: Global oversupply extends beyond commodities, elevating deflation risk. To me, this is a very serious issue, quite likely signaling that we are reaching what has been called Limits to […]
Who’s To Blame For The Oil Price Crash?
Who’s To Blame For The Oil Price Crash? When we think of the recent drop in oil prices, the question is not only who started it, but who’s responsible for keeping the prices falling. Probably no one would dispute that the price plunge began with the eager and copious production of oil from shale formations […]
Kuwait “Over-Supply” Concerns Send WTI Tumbling Back To $42 Handle
Kuwait “Over-Supply” Concerns Send WTI Tumbling Back To $42 Handle Reversing all of yesterday’s FOMC-inspired idiocy, WTI has plunged back to reality this morning. Following comments by Kuwait’s comments that OPEC had no choice but to keep production steady, refocusing the market on global oversupply, April WTI is back down to a $42 handle. All of […]
Saudis Claim Conspiracy Theorists, Not OPEC, To Blame For Oil Price Crash
Saudis Claim Conspiracy Theorists, Not OPEC, To Blame For Oil Price Crash A top Saudi official said on March 15 that Thomas Friedman and other conspiracy theorists are to blame for the crash in oil prices. Rather than an oversupply and weak demand causing an imbalance in global oil markets, Dr. Ibrahim Al-Muhanna, the advisor […]
