{"id":18403,"date":"2016-03-02T20:22:50","date_gmt":"2016-03-03T01:22:50","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18403"},"modified":"2016-03-02T20:23:19","modified_gmt":"2016-03-03T01:23:19","slug":"18403","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18403","title":{"rendered":"A Secret About Oil You Won\u2019t Find Anywhere Else"},"content":{"rendered":"<header>\n<h3 class=\"entry-title\"><a href=\"http:\/\/www.dailywealth.com\" target=\"_blank\">A Secret About Oil You Won\u2019t Find Anywhere Else<\/a><\/h3>\n<p class=\"entry-meta\"><strong>This is going to be a far larger problem than Wall Street realizes.<\/strong><\/p>\n<\/header>\n<div class=\"entry-content\">\n<div>\n<p>In early 1983 \u2013 the first week of February, to be precise \u2013 the inventory of crude oil in the U.S. reached an all-time economic high. I say \u201ceconomic high\u201d because nominal supply of crude oil has since far surpassed its 1983 number. In fact, current U.S. crude-oil inventory (504 million barrels) is the\u00a0<i>actual<\/i>\u00a0all-time high. Supply today is about 150 million barrels more than total supply in 1983.<\/p>\n<p>Obviously, we have a lot more oil in storage than we\u2019ve ever had before \u2013 about 40% more. But nominal supply numbers aren\u2019t as important as you might think. Demand for crude oil in our economy has grown a lot since 1983.<\/p>\n<p>To make a bona fide \u201capples-to-apples\u201d comparison to today\u2019s supply glut, we should measure the amount of oil supply relative to consumption. In 1983, the number of days\u2019 worth of consumption in the U.S. hit a peak of 33.4.\u00a0<i>That\u2019s the largest amount of crude oil we\u2019ve ever held in private storage, relative to demand<\/i>. That\u2019s the all-time highest amount of \u201ceconomic supply\u201d \u2013 supply in relation to actual demand.<\/p>\n<p>Much like today\u2019s glut, the glut of oil from the mid-1980s was caused by a sustained increase in U.S. production. More oil was coming from Alaska\u2019s North Slope. The Trans-Alaska pipeline began operation in July 1977. It had an immediate effect on total U.S. supply.<\/p>\n<p>U.S. oil production grew from 227 million barrels per month in 1977 to almost 270 million barrels per month in July 1986 \u2013 an increase in monthly production of 18.9% over nine years. As you might remember, gasoline prices fell to well below $1 per gallon\u2026 and we saw a commercial real estate and banking crisis in Texas. Houston real estate didn\u2019t recover for 20 years.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>A Secret About Oil You Won\u2019t Find Anywhere Else This is going to be a far larger problem than Wall Street realizes. In early 1983 \u2013 the first week of February, to be precise \u2013 the inventory of crude oil in the U.S. reached an all-time economic high. I say \u201ceconomic high\u201d because nominal supply [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[184,588,589,3044,1775,595,4044,596,10553,860],"class_list":["post-18403","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-crude-oil","tag-oil","tag-oil-demand","tag-oil-glut","tag-oil-price-collapse","tag-oil-production","tag-oil-storage","tag-oil-supply","tag-porter-stansberry","tag-wall-street"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18403","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18403"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18403\/revisions"}],"predecessor-version":[{"id":18405,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18403\/revisions\/18405"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18403"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18403"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18403"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}