Worldwide demand is starting to seriously outstrip supply, crude and gasoline stocks are dwindling. As reality sinks in, prices have only one way to go and that is UP!
Peak Oil has hit the main stream media, the CBC and the Pakistan Daily Times have stories about the Energy Watch Group report released on Monday the 22 of October. It seems as though the recent crude price records have made more believers, this is just a start.
Here is a pretty good article on how oil prices spark civil unrest, no mention of peak oil or anything but still interesting.
Surprise, although the latest EIA weekly report wasn't too bad we're still exploring record territory. It shows how tight the market really is.
This week's EIA report shows marginal builds in both crude oil and motor gasoline stocks. That should mean a pause in the constant oil price records of late, for a while. But there is little to rejoice about, 0.6 and 0.3 million barrels for crude and gasoline respectively are in fact no movement at all on the way up at least.
Get ready for almost daily oil price records, at least for a while. The latest EIA Weekly Petroleum Data report shows yet more drawdowns in both crude and gasoline stocks. Gasoline stocks now at 190.4 million barrels are getting very close to the minimum operational level estimated to be around 187 million barrels. Stay tuned, the show is about to get interresting.
Well it looks like the people of Nicaragua will be in even deeper trouble. Their government could not get Esso to handle the oil products that they are receiving from Venezuela so they just seized the Esso port facilities in Corinto. Esso also owns the only refinery in the country, so this will be interesting.
Syria seems to experiencing severe electricity shortages, generating capacity is lagging way behind demand. How late in the game it is to correct the situation is anyone's guess.
Well bad news for the people of Nicaragua, their electricity generation problems are far from over it seems. It appears that there is a lack of funds to pay for the fuel promised by Venezuela's Chávez, it doesn't bode well for the future. Meanwhile other parts of the world are also in trouble due to high oil prices, there's comprehensive list here.
There is an excellent opinion piece on agro fuels titled The biofuel myths that came out yesterday, a must read. It gets clearer all the time that we are going to burn whatever we can to maintain this civilization, the future is grim indeed.
Now this is good, the International Energy Agency warns of "supply crunch" for the next few years. The part I don't understand is why they think there will be problems only until 2012. Is there going to be no need for oil after that? Boggles the mind really.
Here's an article that describes pretty well the rolling blackout situation in Nicaragua. Meanwhile in the rest of the world motor vehicle fuel shortages or rationing have cropped up in Argentina, Iran, Nepal and Zambia.
Perhaps I'm off my rockers but this piece of news has left me with with feelings that are hard to put into words. Just yesterday the Weekly US Petroleum and NG Supply Reports stated another draw of 0.7 million barrels of unleaded stocks, light sweet crude futures are up to around 70 USD and yet there's a waiting list worth two years of production for the 2008 Rolls-Royce convertible. This world is one crazy place, no doubt about it.
It's no wonder that there have been problems generating enough electricity in Nicaragua ever since oil prices started rising, up to 71% of the country's electric energy is produced by generators using either diesel or bunker fuel. There have been a lot of blackouts, planned or not, caused by lack of generating capacity until the election of the latest sandinista government which got help from Venezuela in the form of diesel generators. Now it turns out that those generators are burning fuel that the state has trouble paying for. Seems that there will probably be a need for rationing before creditors stop selling fuel to Gecsa a state owned generator. While people in some countries are still cruising freeway systems in their SUVs a growing number will find themselves in the dark it seems.