🛢 Peak Oil: A Looming Threat to Economic Stability
Global crude oil production has been unable to recover to its 2018 peak, suggesting that we may have passed the peak oil era.
Oil prices are influenced by a complex interplay of factors, including debt levels, interest rates, and geopolitical events, rather than simple supply and demand.
The current debt bubble poses a significant risk to oil prices and the global economy, as a potential burst could lead to a sharp decline in oil production and economic activity.
World crude oil extraction reached an all-time high of 84.6 million barrels per day in late 2018, and production hasn’t been able to regain that level since then, sparking the question: has oil production already peaked?
Oil prices have bounced up and down over the ten-year period 2014 to 2024
Recently, lower prices seem to be associated with lower production because extraction has become less profitable for producers. A temporary spike in oil prices does little to raise production. The view of economists that crude oil extraction can continue to rise indefinitely because lower production leads to higher prices, which in turn leads to greater production, is not true.
According to EIA data in Figure 1, the highest single month of crude oil production was November 2018, at 84.6 million barrels per day (mb/d). The highest single year of crude oil production was 2018, when world crude oil production averaged 82.9 mb/d. The last 24 months of oil production have averaged only 81.7 mb/d of production. Compared to the year with the highest average production, world oil production is down by 1.2 mb/d.
Furthermore, in Figure 1, there is nothing about the world production path in the last 24 months that gives the impression that oil production will be surging upward anytime soon. It merely increases and decreases slightly.
World population continues to grow. If economists are to be believed, oil prices should be shooting upward in response to rising demand. However, oil prices have not generally been increasing. In fact, as of this writing, the Brent crude oil price stands at $69, which is lower than the recent average monthly price shown in Figure 2. There is concern that the US economy is going into recession, and that this recession will cause oil prices to fall further.
One thing that is somewhat confusing about OPEC’s oil production is the fact that the membership of OPEC keeps changing. The data the EIA displays is the historical production for the current list of OPEC members. If former members left OPEC because of declining production, this would be hidden from view.
Based on the EIA’s method of displaying historical OPEC oil production, the peak in OPEC production occurred in November 2016, at 32.9 mb/d. The highest year of oil production was 2016 at 32.0 mb/d, with 2017 and 2018 almost as high. Average production during the last 24 months has been 29.2 mb/d, or 2.8 mb/d lower than the 32.0 mb/d production in its highest year. Thus, recent OPEC production has fallen further than world production, relative to their respective highest years.
Prices have changed dramatically between 2014 and 2024. I chose to look at prices versus production during three different time periods, since these periods seem to have very different production growth patterns:
January 2016 to November 2016 (rising OPEC production)
December 2016 to April 2020 (falling OPEC production)
May 2020 to May 2024 (rising and then falling OPEC production)
The peak oil situation is far more complex than the models of economists make it seem. World crude oil supply seems to be past peak now; it may be headed down significantly in the next few years. Central banks have been working hard to keep oil prices within an acceptable range for both producers and consumers, but this is becoming increasingly impossible.
🔗 https://oilprice.com/Energy/Crude-Oil/Peak-Oil-A-Looming-Threat-to-Economic-Stability.html
Yanis Varoufakis (former Greek Minister of Finance) describes AI as a new form of capital that produces not goods, but behavioral modification. This is achieved by engineering perceptions.
The answers provided by ChatGPT, or the images rendered by StableDiffusion — as these increasingly inform our perceptions, they in turn define the reality we experience.
This is what makes AI so powerful — he who controls the AI, defines the reality of tomorrow.
⚡️🇺🇸 Some more things coming out for the 2026 National Defense Authorization Act (NDAA).
Under the preliminary drafts of the bill, the USAF is requesting a release of $57,000,000 USD ($57.0 Million) to retire all remaining 162 A-10 Thunderbolt IIs in current service. Apart of the 2023 NDAA, there was a clause for a few million dollars to be released every so often to gradually retire the (then) 250 airframes by 2034; however due to the push by the Dept of Defense to ‘shed’ obsolete or obsolescent airframes that cannot be overhauled or upgraded further without a whole new airframe, it appears the USAF wants to retire all 162 remaining A-10s by the end of 2026.
The USAF plans to fully divest the 340-total remaining A-10s entirely, including those that currently serve in a handful of Air National Guard units in some states; which will be replaced by F-15EX Eagle IIs (like what is already happening with the Michigan State Air National Guard’s A-10s), or F-35A/Bs.
Included ...
My older sister lives in the country in between Velma Oklahoma and Duncan Oklahoma near the Fuqua Lake area, this story was told by a rural mail delivery woman who delivers the mail in the country.
The incident happened while she was on her route, when she came upon to the mailbox a male Chinese nation came out brandishing a, AK-47 rifle being very hostile,
I don't know if he pointed it at her since it is against the law to do so but she was terrified and said she was never going back and that the location that had a guard tower. Was the sheriff department notified, I don't know, did she notify her supervisor, don't know. But word is from the country folk who live in the area they have seen the guard tower at the pot place;
I refuse to call it a farm because it is an insult to farmers.
And yes she was traumatized by that ordeal