{"id":30763,"date":"2018-02-09T10:02:03","date_gmt":"2018-02-09T15:02:03","guid":{"rendered":"http:\/\/olduvai.ca\/?p=30763"},"modified":"2018-02-09T10:02:03","modified_gmt":"2018-02-09T15:02:03","slug":"party-on-dudes","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=30763","title":{"rendered":"Party On, Dudes"},"content":{"rendered":"
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Party On, Dudes<\/a><\/h3>\n<\/div>\n<\/div>\n
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As of this week, the shale oil miracle launched US oil production above the 1970 previous-all-time record at just over ten million barrels a day. Techno-rapturists are celebrating what seems to be a blindingly bright new golden age of energy greatness. Independent oil analyst Art Berman, who made the podcast rounds the last two weeks, put it in more reality-accessible terms: \u201cShale is a retirement party for the oil industry.\u201d<\/p>\n

It was an impressive stunt and it had everything to do with the reality-optional world of bizarro finance that emerged from the wreckage of the 2008 Great Financial Crisis. In fact, a look the chart below shows how exactly the rise of shale oil production took off after that milestone year of the long emergency. Around that time, US oil production had sunk below five million barrels a day, and since we were burning through around twenty million barrels a day, the rest had to be imported.<\/p>\n

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Chart by Steve St. Angelo at www.srsroccoreport.com<\/p>\n<\/div>\n

In June of 2008, US crude hit $144-a-barrel, a figure so harsh that it crippled economic activity \u2014 since just about everything we do depends on oil for making, enabling, and transporting stuff. The price and supply of oil became so problematic after the year 2000 that the US had to desperately engineer a work-around to keep this hyper-complex society operating. The \u201csolution\u201d was debt. If you can\u2019t afford to run your society, then try borrowing from the future to keep your mojo working.<\/p>\n

The shale oil industry was a prime beneficiary of this new hyper-debt regime. The orgy of borrowing was primed by Federal Reserve \u201ccreation\u201d of trillions of dollars of \u201ccapital\u201d out of thin air (QE: Quantitative Easing), along with supernaturally low interest rates on the borrowed money (ZIRP: Zero Interest Rate Policy). T<\/p>\n<\/div>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Party On, Dudes As of this week, the shale oil miracle launched US oil production above the 1970 previous-all-time record at just over ten million barrels a day. Techno-rapturists are celebrating what seems to be a blindingly bright new golden age of energy greatness. Independent oil analyst Art Berman, who made the podcast rounds the […]<\/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":[2,3],"tags":[8195,14964,195,8222,449,1474,846],"class_list":["post-30763","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-art-berman","tag-clusterfuck-nation","tag-debt","tag-great-financial-crisis","tag-james-howard-kunstler","tag-us-oil-production","tag-us-shale-oil"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30763","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=30763"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30763\/revisions"}],"predecessor-version":[{"id":30764,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30763\/revisions\/30764"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30763"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30763"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30763"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}