The U.S. Energy Scam

   Soon, the 2014 equity bubble will begin to expand to new high marks in our markets.  When the bubble bursts in 2015, the resulting depression will be extremely harsh. 

   Sanityandsense.com projects that the lead economic component of the 2015 depression will be the great energy scam.  Far too many Americans believe that the oil and gas industries are in a production renaissance.  Even the ” Wall Street Wizzards ” believe that with enough federal tax breaks and more cheap federal loans when combined with middle income generated federal subsidies, America will have a vast source of available cheap energy.  Unfortunately, the facts do not support this assumption.  Recent upward moves in the forty-five year regression line for U.S. oil production are statistically negligible.  For all of the hype about shale oil production in the Bakken, U.S. production during 2012 was lower than it was in 1995 and 33 percent lower than 1970.  Total production in 2012 was only 6.4 million barrels of oil each day !

   The recent small gains in U.S. oil production are mainly due to cheap capital thanks to the Fed’s psychotic manipulation of interest rates.  There is no place in the world with more oil wells than the lower 48 states of the U.S.  Over 75 percent of all oil wells drilled in world history have been drilled in the lower 48 states of the U.S.  The only oil left in the lower 48 states is high cost and very low grade oil and hydrocarbon deposits. 

   In 2015, when the economic bubble bursts, the beginning of the 2015 depression will be signaled by the popping of the oil bubble.  This bubble explosion will be followed by bailout demands from junk oil speculators in the Black Hills of North Dakota.  Unfortunately the junk oil speculators in North Dakota will soon follow the “petroleum prostitutes” southward from North Dakota into Nevada.  The petroleum prostitutes will have the only net gains in total assets while the junk oil speculators will be fortunate to avoid bankruptcy. 

                                         R. Van Conoley

This entry was posted in Economics/Finance, International News, Next Year's and Future Headlines Today, State and National News and tagged , , , , , , , , , , . Bookmark the permalink.

Leave a Reply