40 Comments

First time in history where we are "voluntarily" transitioning to a lower energy output by weight, and then have to depend on our "Friends" in Russia and the Middle East to dig us out of the hole we have created for ourselves.

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Great article! I think there is a real risk of what some analysts I follow have called "greenflation" and "the revenge of the old economy"

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Great article Sir. For some of the serious students I highly recommend Dan Yergin's OLD OLD book, "The Prize".

I used to own some production many decades ago and worked out of the oil patch in Denver and followed and still follow the business very closely as it is the driver of the worlds economy. (Wanna put windmills and solar panels on the trucks on the freeways hauling food and fuel to the consumers??)

A really important factor relating to all production, and especially the Saudis is that they have started water floods a long time ago. I Watched their main field, Ghawar as closely as possible for its production decline and then put on water flood years ago. Important to KNOW that a water flood will sustain flat production at great expense, UNTIL the water hits the well bore, then oil stops, and the expression in the business is "it watered out". They have discovered a big new field many years ago that 60 minutes had a reporter on the ground for, but their data is hard for us amateurs to really dig out for reality.

British and Norway off shore production is getting very long in the tooth, and the greenie moves in Europe are, IMHO, going to have a lot of people freezing to death in the dark while starving maybe this winter, especially if Putin gets hard nosed with the gas supply. Shutting down nuclear power plants is the height of insanity.

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Just was with a friend the other day commenting on how oil stocks have already priced in high oil prices. We're just at the beginning

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Every investor needs oil in his/ her portfolio because it is such a vital part of the economy and the squeeze risk is here

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"What happens to price?" One thing that could happen but that was not mentioned is that the governments could institute price controls.

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I desperately want this on a T-Shirt. Come on man, this is a tease. Free the chicken.

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Great post! Btw has anyone seen this shale spac? BMAC.U ? Curious to find out more info.

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indeed, oil MUST generate , at least into the next decade< the energy it WILL take to manufacture the plastics for the EV's LOL. it is so moronic to believe that EV's make their own plastics and Tech parts from " air" it promises to make cleaner , of which the opposite will be true..

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Reading every new Doomberg article I feel the pun "Green Leap Forward" gets more and more apt. This is going to be one more sad case of ideology colliding with cold hard reality and millions are going to suffer because of it.

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As a commodity analyst - I can say this report is pure gold but not a timing instrument. I predict Crude to trade sideways between 60-75 USD for the next few months - the next leg is higher.

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There are several major flaws in the EV narrative:

1) There are not enough raw materials available to replace the ICE vehicles - not for decades. Just look at the lithium production, it's falling behind already. Opening new mines takes years.

2) Lack of raw materials keeps the price higher than currently anticipated

3) Number of vehicles in the world is rising exponentially.

4) Personal vehicles consume only 25-30% of oil anyway

5) Replacement of other oil consuming vehicles is even further away

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I don't think the carbon tax will stop the coming ice age

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Doom - if you could explain how Joe Biden - and it seems the entire U.S. government - has become owned by the World Economic Forum, THAT would be an accomplishment.

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Very nice writing.. loved your insightful use of Gold Rush to explain/humanize the problems in the Shale fields

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