GOVERNMENTS ‘FIDDLE’ AS OIL SUPPLY BURNS

The world’s oil supply is under siege on all sides.

Not only has the market lost 3 million barrels a day of Russian oil due to sanctions, we have seen a string of fires, explosions, supply breakdowns and strikes take out oil refineries worldwide.

On Monday, South Africa declared a ‘force majeure’ at Naref, its last working oil refinery, due to ‘delivery delays.  That means SA’s whole refinery fleet is out of action.

In, Libya, oil production has collapsed from 1.2 million barrels a day to 100,000 barrels, while in the US, Executive Orders have closed the Keystone Pipeline and major fields off the Gulf of Mexico and Alaska Inlet.

Biden is now desperately releasing a million barrels a day from America’s strategic oil reserve, which fell to its lowest level since 1985 this week.

Nearly 1 million bpd of oil refining capacity has been lost in the US since 2020, with five refineries shut down and more closures planned.

Chevron’s CEO told Bloomberg recently: ‘there will never be another new refinery built on US soil’.

In Australia, Chevron announced the closure of WA’s largest oil field by 2025.  This follows the closure of two refineries and dozens of offshore oil fields including shutdowns at the Curtis Island project in Gladstone.

New Zealand protestors, meanwhile, have been camped at Bream Bay for 100 days calling on the government to reopen NZ’s sole oil refinery at Marsden Point.

The whole world, meanwhile, has stopped investing in oil.

Today, there are just 507 oil fields producing more than 500,000 bpd. Most are 50+ years old with 60 percent decline rates.

Replacing these fields will take years and trillions of dollars but despite the surging demand and exploding price, there is no sign anywhere of governments preparing to invest in exploration.

Oil investment peaked in 2015 at a trillion dollars, falling to 583 billion in 2016.

Funny that.

2015 was the year governments worldwide signed on to Agenda 2030 and its 17 Sustainable Development Goals?

What are the odds that hundreds of billions of oil investment were then cancelled or postponed?

Without oil, the world would grind to a halt.

Factories would stop running, Ships, trucks, cars, tractors and airplanes would all sputter to a standstill and rust.

It is the indispensable energy that powers everything from industry, agriculture, transportation and construction.

So where are the oil ‘resilience plans’ or ‘emergency preparedness strategies’?

There aren’t any.

We don’t even have the baseline analysis needed to prepare such a thing.

The one bright spot is that people are finally waking up to the fact that ‘green tech’ won’t save them.

The ‘Green New Deal’ is NOT working.

Just ask all those Germans madly chopping firewood to prepare for winter!

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