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Page added on May 26, 2015
Peak Oil Dress Rehearsal?
This is extraordinary. Remember all those dire things that were supposed to happen when Peak Oil hit? All the stuff in The Long Emrgency? Cars queuing up for miles to buy petrol, public transportation jacking up rates, cell phones not working, banks closing their doors, planes grounded for lack of fuel, supermarkets stripped bare, scalpers selling gas in jerry-cans, factories shutting down, stations going off the air, people losing their jobs, political disorder, human sacrifice, dogs and cats living together, mass hysteria…
Turns out all of it is happening…In Nigeria:
Nigeria is facing a prolonged fuel-supply crisis that is taking a severe toll on the country’s economy, living conditions, and basic services, reports say.
The shortage in Africa’s leading oil producer has forced an increasing number of drivers in Lagos to stop using their personal vehicles, but prices for commuters on public transport have more than doubled. Black market vendors have been selling petrol at about $0.70 per litre – almost double the official price. At Lagos domestic airport on Thursday morning, passengers were told all flights were delayed because there was no aviation fuel.
Felix Onuah, a Nigerian journalist, told Al Jazeera from Abuja on Thursday that many companies and businesses have been forced to shut down due to a dearth of supplies.”There is a serious crisis. About eighty percent of petrol stations do not have fuel in the country,” he said. “It has also caused a lot of hardship because the shortage has caused a sharp rise in transportation costs and other services associated with fuel.”
Musa Yusuf, director-general of Lagos Chamber of Commerce and Industry, told AFP news agency that “many companies have shut down because they cannot get diesel to fuel their plants”. He also warned that the fuel crisis could take a major toll on employment. “Unless the situation is redressed, companies may be forced to lay off [staff],” Yusuf said.
[…]
Nigeria’s severe fuel shortage has started to cause widespread disruption to everyday services, with the telecommunications and banking sectors the latest hit hard by the worsening crisis.
A major Nigerian bank announced on Monday that it would close all branches at 1pm local time, after major mobile phone networks announced over the weekend that a shortage of petroleum products may cause a disruption in services. In a statement, GT Bank said: “The current shortage of petroleum products in the country has limited our ability to supply diesel to all our branches in order to continue normal branch operations. “Due to this, we unavoidably have to close our branches nationwide at 1pm [on Monday].”
“Things are gradually grinding to a halt in many areas of Nigeria at the moment,” our correspondent said, noting that there were reports of schools and electricity networks being affected by the fuel shortage.
Some Nigerian airlines have announced drastically cut services and some radio stations have gone off air, because they can not source diesel for their generators.
[…]
Nigerian airlines have grounded flights and radio stations were silenced as a months-long fuel shortage aggravated by striking oil tanker drivers worsened in Africa’s biggest oil producer.Radio stations went dead on Saturday night, including Classic FM, The Beat and City FM, hit by frequent power outages and out of diesel fuel for generators.
Chaos reigned at bus stations where vehicles stood idle and at Lagos’ Murtala Muhammad International Airport as one flight after another was cancelled.”All flights suspended or cancelled. No fuel. Been sitting here since 6am,” one customer complained on Twitter.
Vehicles also were grounded. Normally bustling roads in Lagos, a metropolis of 20 million, were half-empty and gas stations were closed on Saturday.
[…]
Nigeria, Africa’s largest economy, is on the verge of total shutdown due to a widespread and worsening scarcity of petroleum products. The scarcity, a result of strikes by fuel marketers and transporters, has intensified in the last two weeks as black market prices across the country have skyrocketed past the government-approved N87 ($0.44) per litre price.
The scarcity has resulted in a number of high profile companies shutting down or curtailing operations as radio stations, telecommunications companies and public services have all been badly affected.
MTN, Nigeria’s biggest telecommunications network with over 50 million subscribers, have warned customers to expect service cuts due to an inability to power base station across the country.
Nigeria fuel crisis takes rising economic toll (Al Jazeera)
Nigeria increasingly crippled as fuel shortage worsens (Al Jazeera)
Nigerian airlines cancel flights amid fuel crisis (Al Jazeera)
Africa’s biggest economy is shutting down for lack of fuel (Quartz)
It’s not for lack of oil, though:
Nigeria produces about two million barrels of crude oil a day but despite its huge reserves, it imports much of its fuel due to a lack of refining capability – a situation blamed on corruption and mismanagement. The government’s fuel-subsidy programme has also been found to be rife with corruption, including false claims and overpayments.
In January 2012, the government tried to end the fuel subsidies, causing petrol prices to more than double. It was forced to partially reinstate them after tens of thousands of people took to the streets in violent protests that left more than a dozen dead.
Onuah, the Abuja-based journalist, said oil and gas is normally subsidised by the state, but the government does not have the funds to pay for it anymore.”Suppliers claim they have stopped distributing fuel because the outgoing government led by President Goodluck Jonathan still owes them more than $1bn,” he told Al Jazeera…
An interesting glimpse into what happens to an economy when fuel runs low – everything is affected. Is it only a matter of time before it happens elsewhere?
51 Comments on "Peak Oil Dress Rehearsal?"
Makati1 on Tue, 26th May 2015 7:31 pm
Hmmm…
All of the above will eventually come to the West and, to some extent, the rest of the world. Although car jams have to have cars and many countries do not have enough to make a good gridlock except in cities. Nigeria has a population of about 180 million and and only ~35 cars per 1,000 people (vs ~800+ in US) Car problems are only for the rich.
As for factories closing and jobs melting away, that is happening all over the world to some extent, except for those countries still growing. Mostly in Central and East Asia. GDP growth in 2014 puts the UFSA at #135/220. (Ps #30/220)
http://en.wikipedia.org/wiki/List_of_countries_by_real_GDP_growth_rate
Plantagenet on Tue, 26th May 2015 7:51 pm
Nigeria is an oil exporting country. The current crisis has nothing to do with “peak oil”—-it has to do with the inefficiency and the graft and incompetence of the socialized oil sector in Nigeria. You see the dame thing happening n Venezuela—another oil exporting country that has totally boogered up their economy by applying half-baked socialist economic policies.
Speculawyer on Tue, 26th May 2015 8:54 pm
Isn’t that just standard African country corruption, anarchy, and collapse?
Apneaman on Tue, 26th May 2015 9:09 pm
Standards change. Apparently there is new and growing one for more US citizens.
Ignoring Businesses, Baltimore Shuts Off Water to 1,600 Homes
Community advocates warn that water shutoffs will ‘create a public health disaster and destabilize working families’
http://www.commondreams.org/news/2015/05/18/ignoring-businesses-baltimore-shuts-water-1600-homes
HARM on Tue, 26th May 2015 11:18 pm
“Nigeria is an oil exporting country. The current crisis has nothing to do with “peak oil”—-it has to do with the inefficiency and the graft and incompetence of the socialized oil sector in Nigeria. You see the dame thing happening n Venezuela—another oil exporting country that has totally boogered up their economy by applying half-baked socialist economic policies.
Odd how heavily “socialist” countries like Sweden, Denmark, Germany, France, Canada, Japan, etc. that all have strong wealth redistribution tax systems to move money from rich to poor manage to avoid that terrible fate.
Meanwhile corrupt and heavily socialist countries like the U.S. that mainly redistribute money from the middle class to the rich manage to avoid the label “socialist” altogether.
Why, it’s almost as though socialism has little or nothing to do with the outcome!
GregT on Tue, 26th May 2015 11:45 pm
Harm,
Planter still believes that the US is a free market, capitalist, democratic country. What else would you expect from someone who lives in a remote area so far removed from the motherland.
Apneaman on Wed, 27th May 2015 12:24 am
Lil Planty, along with millions of others, likes to believe in a story that was only ever partially true and only for about 20-30 years. A rare blip in time;gone but not forgotten, yet never to return.
http://www.declineoftheempire.com/2015/05/why-did-i-post-that-simon-sinek-video.html
Perk Earl on Wed, 27th May 2015 12:24 am
Ap, when we first moved into the community we now live, we let our water bill lapse 2 days and the water was cut off. Not 2 days past some grace period, just 2 days past the due date. The water co. have a zero tolerance policy. If someone goes late they get cut it off. (Of course later the head haunch of the water company embezzled millions. I guess he wouldn’t tolerate a slow transfer of local funds to his bank account).
But I’ll tell you, not having water gets your butt in gear real fast to find the bucks to pay the bill.
Ralph on Wed, 27th May 2015 5:20 am
Nigeria has been a poster child for the corporate state controlling local corrupt government for the benefit of the international shareholders for at least 30 years. That said, a major UK mobile phone network has been off-line for the last 3 days without explanation,
and I think that is a taste of the future in the developed world, not catabolic collapse, but systems so complex and fragile that they simply break and become manageable.
rockman on Wed, 27th May 2015 6:30 am
Ralph – “…but systems so complex and fragile that they simply break…” Exactly. Just falls into the category of “sh*t happens”. But that complexity may be the biggest problem the more developed countries like the US will face down the PO road. Losing cell service is irritating. But electrical grid interruptions, public transit problems, govt social security checks sent out by computers and all the other more complex system can falter to some degree.
It isn’t that undeveloped countries won’t also continue to struggle but they were never able to develop such interconnected complexity. They’ve had lifetimes to learn how to deal with their various deficits. That transition in the US, even if it occurs slowly, will be difficult for the rather pampered citizens to cope with.
Davy on Wed, 27th May 2015 6:46 am
Nigeria is another one of the failing state I have mentioned as an example of what is coming to your neighborhood. When I say your neighborhood I mean everyone’s including the anti-Americans. Don’t look at the details look at the generalities. There are situations and circumstances that are common with every local. The responses locally will be different because locals are very diverse. We have been globalized with much similarity but we are still locals governed by culture, geography, and economics.
dave thompson on Wed, 27th May 2015 7:50 am
This story is an example of what happens when the oil is taken out of the equation; Energy inputs + – = Economy + -.
paulo1 on Wed, 27th May 2015 8:35 am
Harm,
Well said. When corruption is seen in a corporate controlled country they call it all kinds of things, from ‘trickle down’ to democracy. When corruption is rife in a more Govt controlled country right wingers call it Socialism.
Of course there is no ‘socialism’ in the States….just the ‘carry trade’ for banksters, tweaked laws for the upward flow of money to the rich, and an increasingly controlling and armed state. Even the ivy league universities are complicit in their involvement.
shortonoil on Wed, 27th May 2015 9:54 am
Radio Shack, Target, JC Penny, Sears is closing thousands of stores. Walmart is no longer building new stores. Ghost Malls are appearing by the hundreds all across America. Our water systems leak 30% of the water put into them, bridges are way past their design lives. Roads in California are being converted back to gravel. Global trade is shrinking to the size of a camel caravan. What is happening is not just happening to some corrupt African country. It is the prelude to the end of the oil age.
Northwest Resident on Wed, 27th May 2015 10:22 am
It isn’t just “peak oil”. It is “peak industrial/high tech civilization”.
There are thousand factual data points on the graph that are all trending downward, and have been for some time.
While the stock market soars and the official propaganda blares over the loudspeakers daily assuring us that all is well and we are “in recovery”, everything else well down the path toward eventual collapse.
We’ve been here before. But before, there was always another big oil (energy) find to get the economy ramped back up, to light a fire under consumerism, to get those millions of happy shoppers out to the malls with stacks of freshly minted plastic to use.
But not this time. The “fracking boom” was the LAST BOOM, and this is the final bust. We’re going to have to ride this bust all the way to the bottom, folks. The sooner you accept that reality and strap yourself in for what is sure to be a wild ride, the better your chances of making it to the bottom — wherever and however far that bottom might be from where we are now.
BobInget on Wed, 27th May 2015 11:40 am
Nigeria’s current liquids fuels crisis is political and temporary. (all about stolen oil money)
That’s not the point.
This is the first time we see dystopia up close, for real.
Nigeria is emblematic of ANY highly mechanized
society without liquids fuels.
Next, and perhaps even more destabilizing we
are witness to Saudi Arabia’s bombing of Yemen.
Yemen has a larger population then KSA ./
Yemen is being deprived of funds for fuels. Why?
Because:
Saudi and companies are bombing the only opposition to al-Qaeda in country, permitting AQ
access to Yemen’s oil fields. Saudi Arabia, once again, with US assistance, changes history.
This on going bombing of Yemen will bring down both any organized government in Yemen and Saudi Arabia.
ISIL destroyed Iraq’s largest refinery. This refinery
supplied most of Baghdad’s diesel and gasoline.
Because, like Nigeria, Iraq’s electrical distribution
is centralized, blowing up pylons, depriving regions of electricity is endemic. Iraq has fewer KW now then prewar despite billions spent by (future) US tax payers.
If no electricity is available people turn to diesel and gasoline generators. If no fuels for those generators can be found, people get hot, hungry, disruptive, and combative. With no government,
Iraq too falls into IS hands.. Unless, the US sends in at minimum 200,000 occupying forces.
Because a new Nigerian President is taking office,
a complete breakdown in Nigeria MAY be averted.
Iraq, Yemen and Saudi Arabia, yet another kettle
of rotten fish.
.
GregT on Wed, 27th May 2015 12:07 pm
What has fundamentally changed since 2008?
Trillions in debt, and another half a billion mouths to feed. Like watching a train wreck in slow motion.
BobInget on Wed, 27th May 2015 12:09 pm
I feel shortonoil’s post needs addressing.
Not that all Short says is not true, it is.
Now, here’s the big ‘however’.
Malls, retail stores, are being repurposed because of on-line shopping. People didn’t stop buying shit
they just do it in different ways. We cried when Wal Mart replaced our favorite variety store. Few mourn
WMT. Our old Wal Mart building now houses an electrical powered motorcycle maker. (Bramo)
We are in another ‘industrial revolution’.
It stared slowly as all revolutions do.
Do you miss your elevator, telephone operators?
Expensive Long Distance phone calls?
Stenographer/sectary/typist/typesetter/proofreader, You get it.
We need to reevaluate electrical and water distribution, generation. Coal is also killing rich folks. That must stop.
This is the first bunch of Republicans who won’t fund highway projects. (might put too many blue collar folks back to work on union jobs, while this
black guy is President)
Davy on Wed, 27th May 2015 1:27 pm
Bob, join the program. We have a massive overcapacity in the retail sector. IOW a massive mal-investment that will never turn a profit. Add to this a stagnating consumer economy and you have a recipe for economic contraction. The powers to be will extend and pretend for some time more. The same is true in China and Europe in different circumstances. This is the end game of industrial man. It may end slow but it is ending.
zoidberg on Wed, 27th May 2015 4:11 pm
Classic example of price controls. Put the price below It’s cost and no one will sell it. It’s not peak oil relateD just government economic illiterates wrecking markets.
Move on doomers. The future is not ours to see.
Outcast_Searcher on Wed, 27th May 2015 4:55 pm
Apeman, since when is it a new standard that people need to pay their bills to receive services?
Just because Obama and his ilk set bad precedent sometimes (for example, changing loan terms for those who buy too much house and can’t make the payments), instead of letting foreclosures proceed as they should.
When a city like Baltimore arbitrarily shuts off the water to people who pay the bills, that will be news — get back to us then.
Davy on Wed, 27th May 2015 5:02 pm
Look at the zoid and his Econ 101 corn porn. Zoid, try digging a little deeper than your simplistic planter style glut talk.
Outcast_Searcher on Wed, 27th May 2015 5:12 pm
Ah, shortonoil… Whatever you do, look at a handful of failing retail chains, and pronounce doom for everyone.
And of course, just lie about Walmart opening new stores, since simple Google searching on “Walmart new stores” shows they’re building lots of new stores (smaller stores and food stores being a focus) in 2015 and 2016.
And you claim global trade is shrinking by a vast amount, and yet global GDP continues to grow at a healthy rate.
http://www.statista.com/statistics/273951/growth-of-the-global-gross-domestic-product-gdp/
I notice you have no citations. How do you expect to have credibility if your claims don’t even remotely reflect reality?
…
I’ll give you credit for being right that the US water systems are generally a disaster — a bad example of infrastructure maintenance EPIC FAIL.
Of course, it’s a matter of political will instead of total economic failure. If a $trillion is needed to fix the problem (round number estimate given in article below), different spending priorities for a decade would do it.
How about shutting down a handful of weapon systems the Pentagon doesn’t even WANT? How about shutting down some redunancies in a few poorly run social programs? Combined, such proactive moves could easily generate a $trillion in a decade to fix the problem.
http://www.npr.org/2014/10/29/359875321/as-infrastructure-crumbles-trillions-of-gallons-of-water-lost
But no. Let’s say we’re doomed. That will surely fix it (NOT).
GregT on Wed, 27th May 2015 5:38 pm
@outcast
“The greatest shortcoming of the human race is our inability to understand the exponential function.”
Everything that you need to understand can be found here:
http://www.albartlett.org/presentations/arithmetic_population_energy.html
Keep reading, and watching over and over. It may, or may not sink in, depending on the level of denial that you are in.
Here’s a small clue:
At a 3.5% rate of global GDP growth, inputs and outputs of the economy will double every 20 years. We are already exploiting the planet at a rate of close to twice that it can replenish itself.
Do the arithmetic.
Davy on Wed, 27th May 2015 5:42 pm
Look at the outcast and his economic corn porn. Outcast read some Zero Hedge and some other alternative finacial sites. Look around your own back yard at the ghost malls. Go in some malls and ask yourself is there enough volume to pay overhead.
Sorry son you are under the BAUtopian spell wanting more than anything for everything to be good. Things are not good outcast. If they were good why are rates stuck at historic lows and debt at all time highs with markets frothy and dangerously inflated.
This is the question the corn buskers can never answer. They will go on and on about this statistic or that Google search but they can’t answer why the central banks are gaming the system still. They can’t answer it because the answer leaves everything they believe to be good in jeopardy.
Apneaman on Wed, 27th May 2015 6:43 pm
Outcast the fact that there are bulk shut-offs at all IS the story, because that never happened before in the US. No matter how much things change you continue to come up with a rationalizations and try to normalize it or minimize it. These kind of things we have been seeing never happened before. Isn’t it getting lonely telling stories that no one believes anymore? The story you cling to is almost finished.
Economic efficiency has been the greatest source of social legitimacy in the United States for the past century, and economists have been the priesthood defending this core social value of our era.
—Robert H. Nelson, ECONOMICS AS RELIGION –
See more at: http://jayhanson.us/e.htm#sthash.5UUgBabW.dpuf
Makati1 on Wed, 27th May 2015 8:06 pm
One of the largest grocery retail chains in the UFSA is quietly cutting overhead by firing thousands of managers and staff and closing stores. How do I know? A relative is one of the upper management being ‘left go’ to cut expenses. Next will be downsizing to smaller stores with less variety, less frills, less…
Keep in mind that the chain of events to get from a piece of land to an open store involves years and millions of dollars up front (land, design, engineering, permits, construction, advertising, etc) and if the process is stopped at any point, the investment is lost. That is why some stores are still being built and may close shortly (1-2 years) after they are opened, with the hope that they can be sold or rented to recoup some of the investment.
GregT on Wed, 27th May 2015 8:28 pm
Makati,
While I completely understand your reasoning behind using the acronym UFSA, and I also agree with you, it would probably go a long way in ending the feud between Davy and yourself if you lightened up a bit.
The two of you have far more in common than not. The constant bickering isn’t helping any of us.
Nony on Wed, 27th May 2015 8:36 pm
The article gives away a secret. Nigeria’s “official price” for gasoline is about 1.50/gallon. So the lines are because there is a “shortage” of subsidized gasoline. And the “black market” gasoline is about the same price as in the U.S. (free market price). It’s not peak oil…it’s just classic failure of government price controls and rationing.
GregT on Wed, 27th May 2015 8:51 pm
Nony,
The ‘free market’ died, the moment that your ‘government’ used tax payers dollars to bail out the corrupt too big to fail banks.
Davy on Wed, 27th May 2015 9:44 pm
Thanks Greg for reaching out. I am going to show Mak a week of quiet. We doomers and preppers really should try to stick together there are so few of us and so much on our shoulders.
I take what I am doing seriously. I am living what I am preaching. I actually feel what I am doing is what a significant amount of the population should be doing in preparation for a descent. I am back to the land in a permaculture. I am learning and saving knowledge and skills for the future. I am living and breathing this lifestyle.
I am not being grandiose I am doing this in humility. It is my nature to be a man for others. What I am doing is nothing special on an everyday level but on my level it is special. I am planting a seed for the future. After I am dead and gone this seed is my greatest gift.
How does this relate to PO you ask. This relates to PO because if you accept the consequences then it should change you profoundly. If you have been changed profoundly you may be energized into action. Make a difference folks in some small way. It is all of our little efforts that will make a difference.
Makati1 on Wed, 27th May 2015 10:51 pm
Hahaha…ok, no more UFSA, even if it is fact. How about the Empire of Chaos or EofC? I would love to put ALL billionaires, and anyone with a net worth over $10M, on the moon without protection, along with the generals and global corporate CEOs. Good thing I cannot do that isn’t it?
But, I will be content to just watch the capitalist economy crash and burn, never to arise again. The Bible may be fiction, but the Four Horsemen are real. I don’t fear them, do you?
Makati1 on Wed, 27th May 2015 11:19 pm
For those who want to believe that China is in worse shape then the EofC, you might consider:
“I have hypothesized many times in the past, China has built out their infrastructure and even “ghost cities” using credit. Once the credit markets begin to default, they will be left with “stuff”, in place and will last for the next 50 to 100 years. Roads, bridges, buildings, airports, ports, etc., you name it they have already built it. And yes, their stock market will crash, their real estate market is already softening, in reverse and declining. I am not saying it will be all rosy, to the contrary, there will be bankruptcies galore in China… with a caveat. The “government” of China will go through this liquidation phase with the most gold in the world.”
http://www.globalresearch.ca/collapsing-global-economy-imploding-financial-system-china-has-only-one-option/5451955
GregT on Wed, 27th May 2015 11:31 pm
Makati,
The bible may, or may not be fiction. None of us alive knows for sure. Believers and disbelievers alike are basing their beliefs on blind faith. Nothing more.
The four horsemen are a biblical prophesy. They are not based on factual information, but in faith of writings passed on for many generations.
How about targeting the people responsible for the fall of the once greatest country on Earth, and giving credit to those that wrote the best constitution ever, instead of lumping in the people that are concerned, like you are, with those that don’t have a clue?
Apneaman on Wed, 27th May 2015 11:34 pm
Nony, free market? More like a free ride……..for some.
Fossil fuels get global $5.3 trillion ‘subsidy’: IMF report
Governments fail to factor in the cost of global warming, pollution, impact on human health
http://www.cbc.ca/news/business/fossil-fuels-get-global-5-3-trillion-subsidy-imf-report-1.3079451
shortonoil on Thu, 28th May 2015 8:36 am
“Look at the outcast and his economic corn porn.”
McDonalds has stopped reporting monthly sales because their sales have fallen for the last seven months. At $60/ barrel, at least a third of the world’s petroleum producers are now operating below their full life cycle production cost. If prices don’t increase, and they won’t, they will be shut in over the next few years.
The oil age will end when oil producers can no longer make money producing oil. At $60/ barrel a third of them are losing, at $40/ barrel 90% of them will be. Petroleum directly accounts for 38% of the world’s economy. As it goes so does McDonalds, Target, Sears, Boeing, and the corner gas station and coffee shop. Venezuela, Nigeria, and US shale are the beginning. The end will be at your local grocery store.
http://www.thehillsgroup.org/depletion2_022.htm
Apneaman on Thu, 28th May 2015 10:37 am
Boeing – Desperate or desperate? Another example of how that “Free Market” really works Nony. Talk about dead weight and useless eaters.
Crony Capitalism At Work – Boeing Threatens To Leave US If Ex-Im Subsidy Yanked
http://www.zerohedge.com/news/2015-05-27/crony-capitalism-work-boeing-threatens-leave-us-if-ex-im-subsidy-yanked
marmico on Thu, 28th May 2015 12:10 pm
Petroleum directly accounts for 38% of the world’s economy.
What a buffoon. Another, in a long list, of order of magnitude errors. U.S. petroleum consumption is 4.1% of expenditures @ $100 WTI.
The formula: 20 million barrels/day x $100 per barrel x 365 days/$17.8 trillion GDP = 4.1.
GregT on Thu, 28th May 2015 12:38 pm
If you are incapable of understanding what Short is talking about Marmico, it is you that is the ‘buffoon’.
Davy on Thu, 28th May 2015 12:50 pm
Captain, try equating that number to the roll oil plays in the economy. I think energy is still part of most activities even your smallish brain waves need some Cheerios in the morning for energy to masterbate over your Freddy fluff porn.
Northwest Resident on Thu, 28th May 2015 12:54 pm
How do we know when Nony is in a foul mood? Answer: He posts as marmico.
“Higher-cost energy inputs into the production of goods and services reduce productivity growth because the economic output per dollar of energy consumed declines. And, though energy inputs aren’t the only thing to consider, they are important. The high energy prices of the last decade or so may be, in part, responsible for low productivity growth.”
This is a tough concept for Nonico, so I’m trying to help out…
http://oilprice.com/Energy/Energy-General/Why-Energy-Costs-Are-So-Important-To-The-Global-Economy.html
Northwest Resident on Thu, 28th May 2015 12:59 pm
marmico — I mean, Nonico — Your “official” and therefore not necessarily believable stats posted above are for just the consumption of oil, aren’t they? What about the economic activity generated by exploration, by drilling, by transportation, by all the many industries and service sectors that are all part of the big energy production pie? Only a BUFFOON would forget to include those when calculating percent of the world’s economy!
marmico on Thu, 28th May 2015 1:55 pm
The quart shy of oil is an effing buffoon, peakoil nutters.
What about the economic activity generated by exploration, by drilling, by transportation, by all the many industries and service sectors that are all part of the big energy production pie?
That’s all included in the upstream WTI price, numbnuts. If any of you coll apseniks,apocalyptians had a grade 10 instead of a grade 1 brain (order of magnitude), you would know that petroleum production has ~3% value added in the U.S. economy. Of course, refining and distribution is additive.
What the buffoon is saying is that the global economy of $75 trillion ($USD) or $90 trillion ($PPP) is $28-$35 trillion petroleum. What a crock of shit.
Northwest Resident on Thu, 28th May 2015 2:48 pm
Nonico — You’d perhaps be a little more persuasive if you weren’t just so thoroughly nasty and degenerate. Your throwing around fake stats from time to time also reduces your credibility. I and probably others interpret your excessive over-the-top “Papa Smurf-like” level of anger and bitterness as being the result of “the quart shy guy” repeatedly hitting you right where it hurts the most — smack dab in the middle of your creepy little fantasy world where you know it all. BTW, I severely doubt that shortonoil is saying that $28 trillion of the current $75 trillion economy is “petroleum” — but he might be. Hopefully, he come along to clarify and smack you down again, to the cheers and applause of the peakoil dot com audience!
GregT on Thu, 28th May 2015 3:53 pm
Marmico,
Take a long look around Mommy and Daddy’s basement. How many items can you count that did not have petroleum used in their resource extraction, refinement, manufacturing or distribution? I’m guessing that would be a big fat zero.
zoidberg on Thu, 28th May 2015 4:02 pm
Nigeria exports crude and imports gasoline.it Cant make enough selling crude to subsidize local wastefulness. It is probably trying to push the cost to the retailers. They balk and stop selling hence the shortage. Cause? The price control and subsequent subsidy not a lack of crude to refine a la kunstleresque doomer porn.
It’s good in the long run. That import export model is horribly mercantilist. Just as well to have it collapse. Maybe Nigerian will embrace more conservation and prudent investment to refine their natural resources in house.
In the meantime enjoy the show I guess if that’s your kink.
R1verat on Sun, 31st May 2015 1:14 pm
I have found that NOT reading or commenting on certain commentators (who shall remain unnamed in my comment) goes a very long way in stopping the bickering. I can honestly say, I don’t miss their input at all!
Cheers!
nadeem on Sun, 28th Jun 2015 12:24 pm
listen
“I have hypothesized many times in the past, China has built out their infrastructure and even “ghost cities” using credit. Once the credit markets begin to default, they will be left with “stuff”, in place and will last for the next 50 to 100 years. Roads, bridges, buildings, airports, ports, etc., you name it they have already built it. And yes, their stock market will crash, their real estate market is already softening, in reverse and declining. I am not saying it will be all rosy, to the contrary, there will be bankruptcies galore in China… with a caveat. The “government” of China will go through this liquidation phase with the most gold in the world.”
thanks
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nadeem on Fri, 3rd Jul 2015 4:37 am
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