Thursday, January 12, 2017

Oil, Coal, and Zero Hedge Economic Decline Numbers

This post will be a bit of connect the dots research.

Today I was reading about the history of Spindletop and Captain Lucas (Austrian Army Captain) discovery of oil in Texas.

The oil well was so big at the time that just that first well produced more oil daily than every other well the world COMBINED.

Link is here

Fascinating read.

What really struck me though was this quote:

Now, people realized the true potential of oil - the vast resources that were, in fact, there, and the vast potential that remained. Before Spindletop, oil was used many for lamps and lubrication - after Spindletop, petroleum would be used as a major fuel for such new inventions as the airplane and automobile. Ships and trains that had previously run on the power of coal, now began to switch to oil, becoming convinced that there would be no shortage of the fuel anytime soon. As an example, the Santa Fe Railroad went from only one oil-driven locomotive in 1901 to two hundred and twenty-seven in 1905.

So then I see this article from Zero Hedge today talking about the world economy is going to crash everywhere etc etc>

Except, that they base their numbers and predictions on the price of COAL consumption.

Frankly I am getting sick of the world is ending predictions.

I heard someone correctly predict the coming US economic depression back in 2007,even before Glenn Beck started talking about it.

I regularly read SHTF Plan, and related sites all this time.

That has been TEN whole years now.

Yes things in the USA suck hard.  India is sucking, and some other places are sucking.  How ever all the economic pain and misery has one thing in common.  It is all self inflicted.  Indai gov andthe stupid gold and currency games, USA with the debt games, China with the well whatever the hell the Chinese do there.  Japan because of demographics.

But things still will continue on.  The one thing to remember.  During the so called 'dark ages' it was not dark everywhere, just some places.

Just because the Brits lost a empire due to hubris, the rest of the world continued on.  Your very existence is proof of that.

We are living in a golden age of discovery and knowledge.  The likes of what the world has never seen before.

I can partake in activities that 100 years ago only the ultra rich could partake and in the time of Genghis Kahn even he could not have had the luxury of what I had for my Christmas meal.

Sometimes you just got to give the PTB a giant middle finger and make it yourself.

1 comment:

SiGraybeard said...

If I may add my pet peeve, it's nonstop talk of "peak oil". I first heard the talk in the 1970s, during the OPEC embargo, with people saying we were going to run out of oil Real Soon Now. It hasn't stopped or the argument changed in 40 years. Peak oil is always five or ten years away.

Is oil finite? Of course. The planet is finite and oil is just a small part of it. But in a normal, functioning economy, as the price of oil goes up, new techniques come online and more oil becomes available. As that increases, other energy sources become competitive in price.

Right now, the oil industry is having troubles because the price is too low. They got so good at fracking and breaking oil out of previously impossible places, that they supply it at prices that drive a lot of the little guys out of business. Same thing with natural gas.