A lot of pundits have been spiking the football that Peak Oil was a big hoax, the US is back “exporting petroleum” again, and that things are back to a New Normal.
Well, these three energy trends show that things aren’t as normal as we were led to believe.
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[/vc_column][/vc_row][vc_row no_margin=”true” padding_top=”0px” padding_bottom=”0px” border=”none”][vc_column width=”1/1″]This is just how many new oil rigs are being used in fracking. Also note the sharp jump is exactly at the same moment that capital needs to get out of housing and into something with “growth potential.”
[/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”0px” border=”none” bg_pattern=”9681″][vc_column width=”1/1″]And what provided all of that new capital? Junk bonds that pay around 10%.
[/vc_column][/vc_row][vc_row no_margin=”true” padding_top=”0px” padding_bottom=”0px” border=”none”][vc_column width=”1/1″]Now look at the demand for gasoline. This is the total number of miles driven in the United States – frozen at the same level since 2007, while we added new oil rigs in a frenzy.
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This situation might be a lot of things, but “normal” doesn’t come to mind.
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