Thread by @Dr_Blaine

From #PepeEscobar, @telegram, 3 June 2022.

One of the ongoing debates in OilWorld: How much spare capacity remains in the system to produce oil at additional levels, globally, in case of emergency?

Answer: it’s running out & there ain’t no more!

#PeakOil is back! ⛽️ ✈️ 🚗

Let us not forget the words of the late, great Matthew Simmons (paraphrasing): “Once Saudi Arabia 🇸🇦 has peaked, then the world has effectively peaked.”

Ergo, there’s no spare capacity to offset banned / boycotted Ru oil. Ergo, global oil mkt = sellers mkt now.

#PeakOil

The above piece via Pepe Escobar states that there is now declining spare capacity in #KSA 🇸🇦 due to declining investment in #oil extraction tech.

It’s actually the other way around: there’s now declining investment b/c there’s no new profitable 🇸🇦 oil to be had. #PeakOil

In simple terms: when the Biden Admin talks about “sanctioning” Ru, there’s an implicit assumption that there’s enough extra #oil out there to offset banned Ru oil.

But this is no longer the case. Result: mad scrambles for remaining oil bids up #prices on world market.

In the meantime, “banned” Ru #oil still finds its way into the world mkt, but now at a much higher price. So high that it more than offsets reduced volume in total product sales.

And b/c every modern commodity relies on oil, as oil prices go so go all consumer prices. #CPI

Example: Look at what has been happening in **relatively affluent Europe**. In some parts of the Global South, it’s even worse.

#prices #inflation #energy

How is some of that “banned” Ru #oil finding its way into the global marketplace?

Hmm…. Let’s ask #India. 🤔 🇮🇳

https://twitter.com/dr_blaine/status/1533165727288467457

Meanwhile, back in Brussels, priests of the European Parliament continued casting spells and making human sacrifice out of their domestic population, in desperate hope that the god of #sanctions would eventually hear their pleas & smite their enemies!

#oil #insanity #hysteria

Okay, thanks everybody! Stay strong! And never ever lose your sense of humor (you’re gonna need it)! 🙋🏽‍♂️

@threadreaderapp unroll