Protect Yourself and Profit from the Coming Energy Crisis
The story begins in the fall of 1960 when the oil price was less than $2/bbl and US production was able to fulfil 70% of its domestic needs. It was when a handful of countries announce the formation of a loose coalition.
The association is the Organization of Petroleum Exporting States, to be known as OPEC. Nobody suspects that these nations – Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador – have just created an institution that arguably will be the single largest factor influencing the world’s economy over the next half-century.
“We are on the verge of a historic transition away from relying on oil as our primary fuel. This transition won’t be something we choose.”excerpt from The Oil Factor
“For investors who don’t have a clear understanding of these trends, the coming years could be a true nightmare.”excerpt from The Oil Factor
A decade later, in 1970, another milestone also draws little notice. After moving up for years, U.S. domestic oil production peaks and begins to drop. This has critical economic implications and foreshadows the eventual global decline in oil production. These two developments set up a perfect storm of trouble that is still brewing in the world economy which leads to countless historically significant events.
The economic significance of oil
The economic significance of oil cannot be overestimated.
Millions of barrels are shipped globally daily, often going to refineries to be converted into gas or heating oil or to be used in the chemical industry to produce everyday live products such as plastics.
However, I really couldn’t share more on the book since it is more of a historical view of the oil and gas industry instead of a current view. It would be a lengthy post in delve in finer details.
“It’s amazing how oil insinuates itself everywhere, oozing into every economic nook and cranny.”excerpt from The Oil Factor
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