Oil Production Outstrips Weak Global Demand
The International Energy Agency (IEA) November report offers no hope for an oil-price recovery any time soon. Over-supply and weak demand for oil will dominate through 2016.
… The IEA and EIA reports taken together lead me to two unavoidable and disturbing conclusions: over-production continues and a weak global economy is an obstacle to oil-demand growth.
__ Art Berman
The global economy is weak for several reasons, not least of all because of the policies of the inept US president Obama. Then there is “the China problem,” with the incompetent economic policies of the CCP finally beginning to catch up to the dragon. Then there are the “BRICS” in general, with Russia, Brasil, China, India, and South Africa all so deep in corruption that any sustainable reform and recovery appears far out of reach. Finally, there is Europe, with its hopeless coterie of “freeloaders,” its massive immigrant problem, and Germany’s absurd descent into energy and economic suicide (Engergiewende).
Meanwhile, oil and total liquids production continue to set records, keeping hydrocarbon prices down and suppressing the economies of the oil exporting states. Even some of the brighter “peak oilers” such as Euan Mearnes have been rapidly revising their predictions to take account of the reality on the ground.
What we are witnessing is “unprecedented” over supply. Huge supply growth momentum was built during the era of record high price that also acted as a drag on the global economy. Low price will at some point result in the situation reversing and the price will turn very quickly. Predicting when that will happen is gold dust. But before that can happen, the production momentum needs to be switched off and I dare say that requires sharply lower oil price in the near term.
As With Oil Prices, So With Commodities Prices in General
The graphic above demonstrates how all commodities prices are suppressed, showing that the depressed global economy plays a strong auxiliary role with oil production, in keeping oil prices down. This picture is likely to prevail at least through most of 2016, if not much longer.
Russia’s economy is bleeding, and money is flying out of China. As noted above, Europe is committing suicide on multiple fronts. Only the US remains to provide a boost to the global economy — if an intelligent US government could be put in place for a change.
The Election of a Pro-Growth US Government Could Change Everything
By 2013, it was already obvious that, on the economy, Obama was the worst US president ever. The disastrous results of Obama’s abysmal economic policies have been obscured by a toady media, but the numbers are there for anyone who wants to look.
Over the first five years of Obama’s presidency, the U.S. economy grew more slowly than during any five-year period since just after the end of World War II, averaging less than 1.3 percent per year. If we leave out the sharp recession of 1945-46 following World War II, Obama looks even worse, ranking dead last among all presidents since 1932. No other president since the Great Depression has presided over such a steadily poor rate of economic growth during his first five years in office. This slow growth should not be a surprise in light of the policies this administration has pursued. __ http://dailycaller.com/2014/08/11/the-obama-economic-record-the-worst-five-years-since-world-war-ii/
When Calvin Coolidge (and Warren Harding) inherited a much worse economic mess from Woodrow Wilson than Obama inherited from GW Bush, he followed a simple 3 point plan:
- Cut spending dramatically.
- Lower taxes.
- Reduce the burden of regulation.
The resulting economic recovery was legendary. Unfortunately, the US government and Federal Reserve under Hoover and Roosevelt were too incompetent to understand the basic economic roots of the 1920s expansion, so they allowed the US economy — and thus the world economy — to go veering off the rails into a prolonged depression, instead of what should have been a short-term correction. The result was Hitler, Tojo, WWII, and a nuclear shadowed cold war that has yet to go away, thanks to Putin.
Obama and his demolition crew never intended to allow the US economy to recover from the bursting of the Carter/Clinton/Bush finance bubble, of course. And it has not recovered, yet.
The global economy requires new economic markets that are sustainable economically — not the bogus lefty-Luddite green energy scams and climate apocalypse cult hysteria that we are seeing. More nuclear technologies needed. Blast you, Jimmy Carter, you Luddite moron!
Humans are capable of doing much better than this. But there are many reasons why many of the global populations will be forced to pass through a severe economic bottleneck before the ones that survive emerge on the other side.
Hope for the best. Prepare for the worst. It is never too late to have a Dangerous Childhood.
More on Asteroid Mining and New Markets to Expand Into:
Once humans venture into space, entire new infrastructures will be built in cis-lunar space — from Earth orbits to Lagrange points, to Luna and everywhere in between. Once humans learn to function smoothly in cis-lunar space, they can better tackle Mars, near-Earth asteroids, the asteroid belt itself, and beyond.
Cis-Lunar Space for the Next Economic Expansion
Many other examples for new markets and new areas of economic expansion could be given. They will sound strange in this age of thralldom to leftist multicultural lowering of expectations, and a shrinking, dying nuclear armed former empire that is threatening to go out with a big bang.
But it is time to pull these ideas out, dust them off, and put them into effect — once a few details currently holding back an expansive and abundant human future are dealt with.