Assessment: Just 11 months ago the United States was energy independent and a net exporter of oil. Today, Joe Biden begs OPEC to increase oil production …
- While oil and gas companies come under pressure to reduce production, the world’s thirst for new supply is only growing
- Without a significant uptick in investment, demand for oil and gas will surpass supply in the not-so-distant future
- This disconnect between the political desire for less fossil fuels and the global hunger for fossil fuels could drive the price of oil up to $100
Chronic underinvestment in new oil supply since the 2015 crisis and the pressure on oil and gas companies to curb emissions and even “keep it in the ground” will likely lead to peak global oil production earlier than previously expected, analysts say.
This would be a welcome development for green energy advocates, net-zero agendas, and the planet if it weren’t for one simple fact: oil demand is rebounding from the pandemic-driven slump and will set a new average annual record as soon as next year.
“Sheba, Dedan, the merchants of Tarshish, and all their young lions will say to you, ‘Have you come to take plunder? Have you gathered your army to take booty, to carry away silver and gold, to take away livestock and goods, to take great plunder?” Ezekiel 38:13
The energy transition and the various government plans for net-zero emissions have prompted analysts to forecast that peak oil demand would occur earlier than expected just a few years ago. However, as current investment trends in oil and gas stand, global oil supply could peak sooner than global oil demand, opening a supply gap that would lead to increased volatility on the oil market, with spikes in prices, and, potentially, structurally higher oil prices by the middle of this decade and beyond.
Supply Could Peak Before Demand
Read More @Zero Hedge HERE
Today in Britain I paid almost $13 for an imperial gallon of diesel!
It’s only a by product of petroleum refining after all.
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