Tag Archives: oil prices

The world has a major crude oil problem; expect conflict ahead

World crude oil production has been falling behind needed levels since 2019. This problem, by itself, encourages the world economy to contract in unexpected ways, including in the form of economic lockdowns and aggression between countries. This crude oil shortfall seems likely to become greater in the years ahead, pushing the world economy toward conflict and the elimination of inefficient players. Continue reading

Posted in Financial Implications, oil shortages | Tagged , , , | 4,255 Comments

Russia’s attack on Ukraine represents a demand for a new world order

Russia’s attack on Ukraine represents a demand for a new world order that, over the long term, will support higher prices for fossil fuels, especially oil. Such an economy would probably be centered on Russia and China. The rest of the world economy, to the extent that it continues to exist, will largely have to get along without fossil fuels, other than the fossil fuels that countries continue to produce for themselves. Population and living standards will fall in most of the world. Continue reading

Posted in Energy policy, Financial Implications, News Related Post | Tagged , , , , | 5,372 Comments

The Afghanistan Fiasco (and Today’s High Level of Conflict) Reflect an Energy Problem

The way energy limits play out is not at all intuitive. Most people assume that we will run out of oil, leading to a spike in oil prices. We will then transition to renewables. As I see it, this understanding is completely wrong. Limited energy supply first leads to a need for simplification: Stepping back from Afghanistan would be one such type of simplification. It would save energy supplies and reduce the need for greater tax revenue or added debt. Continue reading

Posted in Financial Implications | Tagged , , , | 3,463 Comments

Don’t expect the world economy to resume its prior growth pattern after COVID-19

Most people seem to think that the world economy is going through a temporary disruption, caused by a novel coronavirus. As soon as COVID-19 goes away, they expect the economy will be back to normal. I think that this assessment is overly optimistic. The way I see the situation, the world economy was already having severe growth problems, caused indirectly by resource problems, even before COVID-19 hit. Continue reading

Posted in Financial Implications | Tagged , , , | 3,576 Comments

COVID-19 and the economy: Where do we go from here?

The COVID-19 story keeps developing. At first, everyone listened to epidemiologists telling us that a great deal of social distancing, and even the closing down of economies, would be helpful. After trying these things, we ended up with a huge … Continue reading

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