Nymex Oil Glut Hits New Record

11 Comments on "Nymex Oil Glut Hits New Record"

BillT on Sun, 30th Dec 2012 4:04 am 



As consumption falls, so falls the need to import oil. Has little to do with domestic production and more to do with the shrinking incomes of Americans. But, the WSJ is not a reliable news source anymore. But then, maybe it never was.

SilentRunning on Sun, 30th Dec 2012 4:17 am 



Strange “glut” we are having. I am *STILL* paying north of $3.50 a gallon to fuel my car, and my friends just paid $3.79 a gallon for heating oil.

*Yawn* – get back to me when the “oil glut” reaches the level where we pay under $2 a gallon for gas.

Arthur on Sun, 30th Dec 2012 10:21 am 



Import is falling because domestic production is increasing. All the peakoil theories remain valid, but the timing has changed. Expect supply to remain on a plateau until at least 2020, against high prices.

BillT on Sun, 30th Dec 2012 10:53 am 



Arthur, NET is the number to watch. There are more ‘barrels’ being pumped but there are fewer getting to the market for actual commercial use. If the new methods use 3 barrels to get 10 then the net supply is 7 barrels, not the 10 reported. That is my understanding.

Arthur on Sun, 30th Dec 2012 11:02 am 



Shale gas has an EROI of 70 or higher. Oil indeed has much lower EROI values.

To counter the doom, here is what we should do with these extra few years given to us:

http://tinyurl.com/apgh7ea

This will be the New Normal in Germany after 2020. And soon in the rest of the world (or that part of the world able to afford it). The longer one waits, the more difficult the transition gets.

BillT on Sun, 30th Dec 2012 3:15 pm 



Arthur, the world does NOT have those 14 years. It likely has less than 10 and maybe much less. Nor is there going to be any massive government support for such change. The oil corporations will block it as long as they can. There is no money to do it. The West is broke. The East is doing some of this, but not enough either. We should have started 20 years ago.

You have no idea what Germany or any country can do in the next 8 years. Not even next year. Odds are very good that the EU will not exist by 2020 and all countries will be scrambling for food and necessities with no money to convert anything. Obviously you are in denial of all that is going on in the world around you or are not up to date on events. I wish I was wrong, but, I doubt it at this point. The US may not even be around in 2020. Not as a super power at least. Maybe even 3rd world like Europe.

Arthur on Sun, 30th Dec 2012 4:13 pm 



Bill, you are even more of a doomer than the peakers at ASPO:

http://planetforlife.com/images/oilandgas.jpg

And then there is shale, for better or for worse…

We have a few decades, not for driving but for a new modest energy base, yes.

These 14 years in Wilpoldsried were pioneering years, when renewables were very expensive and yet resulted nevertheless in 320% **overproduction**. Solar panels are much cheaper now, no windturbines necessary. Any village in the West can do this now in a matter of 2 years, provided they have an assertive mayor. Btw I believe that the future will be more solar than wind. For wind you need cranes and roads, where solar is simple solid state technology of a few microns thick, attached to a flat underground like glass, mounted on your roof. The introduction of this technology is relatively independent of the question whether US or EU will exist in it’s current form after 2020 (I do not think so). You can have your solar installation for a few thousand dollar. National governments should implement a policy that from 2020 onwards municipalities are responsible for energy generation, not the national government. This should result in townhall meetings with residents, authorities and bankers. There was a life before oil and there will be a life after oil. That life will include continuation of some level of comfort at home (lights, fridge, small electronics for communication and entertainment, powered by solar like in Wilpoldsried) but likely without cars.

But you are right, there is not much time. Germany has the most awareness of the problems and the means and competent people to do something about it. And low birth rates. Wilpoldsried is the example to follow for the rest.

“Maybe even 3rd world like Europe.”

When was the last time you were in Europe?

Bill on Sun, 30th Dec 2012 7:14 pm 



I’m with Billt.

No way will solar power help more than a little.

BillT on Mon, 31st Dec 2012 2:58 am 



Arthur, I see what is happening through the financial news and current events. Europe is disintegrating. Hard to see when you are inside and it happens gradually. Same problem the sheeple have in the Us. Propaganda fed to them 24/7/365 keeps them blinded to the destruction around them.

I don’t see the financial system lasting long enough to fund the recovery of most of the oil and natural gas that is left. Europe’s economy is collapsing just ahead of the Us economy. Japan is a whole different culture and they will contract in their own way and should not be used as an example for anything Western. China too is not Western. Even the Philippines is not Western although they were a colony of the West for centuries. Asian countries will deal with collapse in a much different way.

Arthur on Mon, 31st Dec 2012 11:12 am 



Europe is not disintegrating at all. Greece is not Europe and is begging to stay in the euro. Europe has balanced trade. It is admittedly making a lot of noise, but that is what you get if real measures are implemented: the patient is screaming for pain. These measures should be implemented in the US as well but it is not happening, would cause too many flash mobs. Europe’s core, Germany, however is still booming, thanks to Eastern Europe/Russia.

http://theeconomiccollapseblog.com/archives/75-economic-numbers-from-2012-that-are-almost-too-crazy-to-believe

Nothing like this is happening in Europe… 47 million on foodstamps?

It is very well possible that a financial crash will bring down the entire global economy, but there can be no doubt as to where the crash is going to begin: the US.

SOS on Tue, 1st Jan 2013 1:53 am 



The glut is a result of inadequate infrastructure. Peak politics was unable to stop the leg of the Keystone pipeline that is now under construction and will be completed in about a yr. this will relieve the glut and help reduce prices to the end user.

This bottle neck is a result of peak politics and nothing more. We have all the energy resources we need to last us far into the future.