What If OIL Went To $300 A Barrel? The Last Blow To The Monetary System!
One of Wall Streets most prominent Hedge Fund managers Pierre Andurand said the current reluctance of energy companies to invest in new production meant $300 a barrel was "not impossible" within a few years.
How is this possible? With the push from the UN to eliminate fossil fuels and a global economy entirely dependent on oil products like plastic and gasoline and a wide array of other products. A lot of alternative energy sources are also reliant on oil by-products to be built.
A lack of investment in the oil sector will drive up the oil prices fast as countries are coming after oil. Taxing it higher and applying a wide array of fees. The countries who are supplying oil and are heavily dependent on income from fossil fuels. If it goes away, they will struggle. Look at what happened with Venezuela, South Sudan, Sudan, Nigeria, Russia, Libya, Saudi Arabia and Norway from their dependency on oil. Venezuela and South Sudan are in hyperinflation. Sudan is struggling with high inflation together with Nigeria. Norway and Saudi Arabia have to run deficits to sustain their governments.
The OPEC countries have desperately trying to push the oil price up from the ultra lows of below $30 a barrel. The price plunge was to be a clear indicator that the economy is struggling and we should have had a massive market correction. The problem is that cartels like OPEC have manipulated the world economy that is dead. The manipulation of the markets have created entirely distorted prices and is manipulating supply and demand just like in a communist country.
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It is of course not only the oil and petroleum markets but also a wide array of other commodities, interest rates, debt markets, stock markets and other financial markets. Nothing is real anymore, and the oil industry is on the verge of a dangerous collapse both caused by political and economical.
With the world still being dependent on oil, I could see oil hitting not only $300 a barrel but $10k a barrel or a lot more. As the US Dollar is falling apart and countries are scrambling to take over as the new world reserve currency to be the new world trade currency.
Remember the US with Kissinger made the USD the world reserve currency by having the Saudis price oil in USD. China is fighting to be the new currency of the world to have their new oil futures being traded in a different currency than USD. When the USD loses the faith of the world, they will go from deflation to potentially hyperinflation as the FED will need to print money to oblivion to cover the debts accumulated.
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If oil goes to $300 a barrel, I think we have more significant issues than most likely we are on the cusp of a worldwide financial collapse and fiat currency and debt collapses well. All the people who bought big SUV's and Trucks over the last years with low prices are starting to feel the pinch. If oil went to $300 a barrel, the potential gasoline price would be $4-6 a litre for gas way higher than the current Canadian prices of about $1.4 a litre.
That would mean the bankruptcy for a lot of families needing transportation to get to work from suburbs. The oil-dependent transportation of North America would grind to a halt, and the big oil countries would collapse further into high inflation and debt accumulation to save their economies.
I think we should focus on renewable resources of energy, but I think the oil corporations have placed themselves at a place where they can shut off the oil supply and still buy up the other energy sources so they can continue to control the energy supply of the world.
The only way out of oil dependency and I am not saying that CO2 is the cause of global warming, sorry climate change either! We need to decentralize our energy supply, so you don't end up with the control of supply in only a few monopolies and governments. The UN and the oil corporations are in my point of view working together to control energy to control population.
At the end is. When energy is abundant so is life. So if the elites and politicians can control the supply of energy they can control the population.
Peace, Love and Voluntaryism,
John
Hi John,
Oil is one thing, but even Canada has a lot of tar sands to pull from. The fight for North America will be the absolute right over fishing grounds especially the Bering Sea. The USA has no intention of loosening it's grip on it's half of the Bering, but Canada will have a tough time preventing it's fishing grounds from being raped. Population control? Nothing controls population growth more than starvation.
Good content. I am far more optimistic about the outcome of any deleveraging scenario as communities will come together and we are seeing it happen all around me. There are so many good resources out there to help on people prepare mentally, physically, emotionally and spiritually that I am very optimistic about the future.
$300 a barrel would be the final nail in the coffin for shopping malls.
Think about farming as well. Food prices through the roof. Totally forgot to mention that!
Yes where you are when the deleveraging starts to happen will impact your access to food and water think Los Angelos. We live in an area close to farm land and bought a large lot that sits as forest.
Big farming can't exist without big oil. Fields will go unplowed, unfertilized, and without its pesticides.
Napkin math just for giggles.
From 1913 the dollar has lost about 98% of purchasing power, that makes about 4.2 percent inflation a year.
So just by that fact it will take about 35 years for the current oil price of 67 to go up to $300 just by USD losing value without any opec rigging, shortage or carbon extortion.
Oil volatility fucks things up beyond manipulation salvation. Oil makes a big move in the current environment & will trigger a lot of dominoes. None good
This chart by globalpetrolprices:
.. would indicate that if transportation has shifted to electric engines and batteries a good part of the consumption would fade. Considering a price projection of 300$ in 15 years from now (=5 times as much as today) while in 15 years, half of all vehicles are at least electric hybrids (=1/3 oil consumption less), then it would mean that the oil production would have to decline by around 80% to reach this price level.
I don't think this is very realistic. In the short run though in case of wars or catastrophes, such a scenario might become relevant. But the likelihood is small as well and it would only be temporary.