Thread.. Friday night rant 1- Political comments about 4 oil producers: #Iran, #Iraq, #Libya & #Yemen:
End of crises in these countries requires dismantling all militias. That leads to another chaos as unemployment, poverty & crimes rise, while #Europe is flooded with refugees.
2- This explains the push by Europeans to integrate the militias into the army, despite their war crimes against humanity. Also, they do not want to pay to rescue these countries from being failed states. So militias are serving local and foreign interests at once
3- Now add Venezuela into the mix! Who has interest in dismantling the militias? Biden? No.
Without jobs, what will young men and women do? 🤔
It is an old political trick by politicians: if you do not keep them busy, they will be busy with you!
4- For the current Iranian regime, their nightmare is to end the role of all militias, including those whom they sent to other countries. The last thing they want is military-trained young men demonstrating against the regime for lack of jobs and opportunities
5- So what should the US and the Arab Gulf states do? Just press for the return of all Iranian militias. But Iran will not do it despite the massive economic cost and all other difficulties. Reason? The cost to the regime from returning them is higher than financing them
6- Iraq will collapse into a total chaos if the militias are dissolved. That means the US might need to go back, or millions of refugees will flood Europe. That explains why the West is turning the blind eye to the human rights abuses of these militias
7- Enter “climate change” ... Assuming all the good intentions, climate change and its massive media coverage is coming at the expense of covering the human tragedies in these countries. But if you think these countries will even care about climate change, think again
8- It took 7 tweets to get to the main point:
While Europe and the US benefit from the existence of militias in these 5 oil countries, the same militias will ruin the climate change efforts. It is not on their agenda! #OOTT#Oil
9- Any western country that cares deeply about climate change has to think twice before destabilising an oil-producing country. That exposes the hypocrisy of climate change: Either you incorporate human rights into it, or you turn the blind eye to it!
10- But the moment they incorporate human rights into climate change they have to accept a delay in implementation. They need to find a balanced approach. “Climate purists” do not care, since many want lower global population anyway #Climate#OOTT
11– while the aforementioned countries will ignore climate change issues, their supplies of oil will remain volatile ... for a long time... and that must be a major assumption in any oil market outlook #Oil
12- Solving the above issues requires true global leaders... Since we do not have them, 😔expect chaos to continue. Here I mean the policy chaos in Europe & the US as climate change policies clash with #HumanRights
13- Now #Iran is electing a new president. It does not matter whether he is conservative or moderate. The existence of militias is essential to the regime. The Shah was overthrown by domestic pressure, despite some international support. The regime understands this point.
14- Hence, the regime can take the international heat, especially that it knows that a military coup similar to that of 1953 that was orchestrated by the US and Britain then will not happen now, especially that the Godfathers of current regime participated in it!
15- sum up: 1- climate change clash with human right leads to failure 2- oil market volatility 3- militias serve domestic & foreign interests 4- All issues related to Iran & its involvement in other countries will stay for a long time 5- Venezuela might end up frozen in time
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Get this:
BP predicted in 2010 that OCED energy consumption in 2030 will be only 6% higher than in 2010 & that energy consumption between 2020 & 2030 will be virtually flat.
Fact from BP itself: OECD consumption between 2010 and 2019 was double the predicted growth: 12% #OOTT
As for oil, it predicted the percentage of oil consumption in the global energy mix to decline from around 33% to 29% by 2020. Well, it remains at around 33%! That means all the expected decline to 2030 is now in the next decade.
BP predicted in 2010 that global oil + liquids consumption will be around 94 mb/d in 2019. Actually, it was around 100 mb/d! Off by a whipping 6 mb/d!
Thread on #oil 1-6 Over the years, I have done a lot of work on the optimal price of oil
OPEC leaders will operate in the sweet spot. Where is the sweet spot now?
Based on my mode, we are already in it. Things start getting sour when Brent is above $75, bitter below $68. #OOTT
2-6 The above are rounded numbers. Of course, the actual results are not rounded. The model is based on several assumptions. The main one is that major producers focus on the long run. Their objective is to prolong the demand for oil as much as they can. #SaudiArabia#OPEC#OOTT
3-6 Short-term fluctuations above $75 or below $68 have no impact on the "sweet spot". Major oil producers should increase production if the price is TRENDING above $75 and prepare to cut if it is trending below $68, if they want to stay in the "honey barrel"! #Oil#OOTT#OPEC
1-5 It is ironic that it was a pro-Trump website that made a big story out of nothing and claimed that the Biden Administration imported Iranian oil.
Aside from being a confiscated oil, it was seized and brought to the US by the Trump Administration. 🔥
2-5 Even preparations to request court approval to sell the oil were made during the Trump administration. The company that owns the tanker contacted the Trump Administration to inform them it might have unknowingly loaded Iranian oil while thinking it was Iraqi #oil. #Iran
3-5 My view: this official contact by the company that owns the tanker ruined an undercover operation that forced the seizure of the ship!
Remember, such crude oil shipments to China take place all the time. Why only this one is confiscated?
Better yet, see next
If you think this problem is limited to the oil industry think again!
Abandoned wind, solar farms, & EV batteries are going to be a bigger problem in the next three decades. #OOTT#oil
"That left the turbines at Altamont Pass and in other locations across California such a as San Gorgonio and Tehachapi passes to, in some cases, fall into disrepair as companies that built them went belly up." #Wind gizmodo.com/californias-hi…
Thread
Econ 101: 1- When oil prices rose to $147 in 2008, and natural gas prices exceeded $14, #renewable energy did not expand much. Why? (same 2011-14 for oil)
Higher oil and natural gas prices are God's gift to democrats and environmentalists then. What happened? #oil#OOTT
2- Similarly, as governments and environmentalists pushed renewable energy and #ElectricVehicles forward, prices of several metals went up substantially and continued to increase. Was this a surprise? Probably to them.
But will this cost increase limit their growth?
3- We already know for sure that shortages of computer chips are delaying the production of all kinds of cars, including #ElectricVehicles.
- The chip shortage will hit electric trucks hard since they have already started the production & many were expected to come online soon.
- البرازيل تعتمد بشكل كبير نسبيا على توليد الكهرباء من سدود الماء على الأنهار. والتي تعد طاقة متجددة.
- البرازيل أكبر مستخدم للوقود الحيوي (الإيثانول المنتج من قصب السكر) في قطاع المواصلات في العالم.
- أوقف ربك المطر... فضرب قطاعات الزراعة والكهرباء والمواصلات معاً!