You would think that with all the added wind and solar energy in Germany, along with all the conventional power plants on standby, all totaling up to huge unneeded capacity, there would be no need to import any power at all. Well, think again.
The United States notched the country’s first month of exporting more petroleum products than it imported, according to newly released federal data. The news comes as Democratic presidential candidates campaign on nixing fossil fuels.
The U.S. exported roughly 89,000 barrels of fossil fuels per day during September, according to data the Energy Information Administration (EIA) released Nov. 29. That’s the first full month the U.S. has exported more than it imported since the U.S. began tracking such data in 1949.
A decade-long increase in fracked gas production is fueling the numbers. Former presidents Jimmy Carter and Barack Obama, among others, spent years promising to make the U.S. energy independent. Presidential candidates from both parties made similar pitches throughout the years.
“This is a very big deal, not just rich in symbolism but marking a major and tangible benefit to the U.S. economy,” Daniel Yergin, vice chairman of IHS Markit, told reporters Tuesday. He authored a book “The Prize” in 2008 that fleshed out how big oil became a dominant form of energy.
He added: “It’s the end of an era that began with the oil crises of the 1970s.” Yergin was referring to the decade when Middle Eastern countries and giant oil cartels used their oil reserves as a weapon against Western nations.
The recent uptick in exports came as fracking of shale deposits stretching from Texas to New Mexico exploded over the last decade.
“Shale completely turned it around,” Yergin said. “The world has never seen growth at this scale this fast. It’s almost as though, in number of barrels, that the United States added a second Saudi Arabia within its own borders.” Obama can also claim some responsibility for the export uptick as well.
The former president signed legislation in late 2015 ending the decades-old ban on crude oil exports. U.S. oil production doubled between 2009, when Obama took office, to 2016, while natural gas production shot up 50 percent in that time. The boom took place on state and private lands.
Imports from OPEC fell to 1.5 million barrels per day in March, which is the lowest level since March 1986, the EIA reported in June. EIA said at the time that OPEC imports fell “as domestic crude oil production has increased.”
The U.S. became the world’s largest producer of fracked natural gas in 2012, surpassing Russia. Natural gas also passed coal as the country’s leading source of electricity in July 2017.
Meanwhile, many of the 2020 Democratic presidential candidates are campaigning on bludgeoning the oil industry.
The Massachusetts Democrat pegged her 2020 presidential campaign on holding oil companies responsible for supposedly contributing to global warming. Warren has not responded to the Daily Caller News Foundation’s request for comment on her campaign’s anti-oil positions.
Sen. Bernie Sanders of Vermont is also campaigning against the oil industry. “What we have to do is tell the fossil fuel industry that their short-term profits are not more important than the future of this planet,” he said during the fifth Democratic debate.
By Ben Lieberman – Re-Blogged From Competitive Enterprise Institute
When the state of Washington rejected a proposed new coal export facility in 2017, it probably expected the usual appeals from the project’s developers. But it may not have anticipated a constitutional battle supported by eight interior states under the Commerce Clause.
The proposed Millennium Bulk Terminals coal export facility would be located in Washington state along the Columbia River, and it would have sent Wyoming and Montana coal on its way across the Pacific to buyers in Asia. But under section 401 of the federal Clean Water Act, such projects require approval by impacted states, which Washington denied.
While Mexico suffered the bloodiest year of violent deaths in 2018, even bigger trouble may be ahead for the embattled country. For the first time in more than 50 years, Mexico has become a net importer of oil. This is undoubtedly bad news for the Mexican Government as it has relied upon its oil revenues to fund a large percentage of its public spending.
And, the majority of these revenues came from just one prolific oil field. After the discovery of the huge Cantarell Oil Field in the Gulf of Mexico in 1976, Mexico’s oil production surged from 894,000 barrels per day to a peak of 3.8 million barrels per day (mbd) in 2004. That year, Mexico’s net oil exports exceeded 1.8 mbd.
Unfortunately, the downturn of Mexico’s oil production was also due to the peak and decline of the Cantarell Oil Field, which topped out at 2.1 mbd in 2004 and is now below 135,000 barrels per day:
By Matt Egan – Re-Blogged From CNN Business
Move over, Saudi Arabia. America is about to steal the kingdom’s energy exporting crown.
By Alasdair Macleod – Re-Blogged From Silver Phoenix
For decades, Western governments have been pursuing a policy of transferring wealth from the public to themselves, their licensed banks and the banks’ favoured customers by means of interest rate suppression and monetary inflation. Consequently, inflation of financial asset prices has benefited the financial sector to the detriment of those employed in the productive economy. Over time, this has badly weakened productive capacity and the long-term ability of the market economy to fund future government spending.
It is a situation which seems bound to eventually lead to major economic and monetary problems. Additionally, global economic prospects have worsened considerably as a result of President Trump’s tariff wars against China and others. Empirical evidence from the 1930s as well as economic analysis illustrate how trade tariffs have a devastating effect on domestic economic activity, a prospect wholly unexpected by today’s economists.
By Bloomberg – Re-Blogged From Newsmax
America turned into a net oil exporter last week, breaking 75 years of continued dependence on foreign oil and marking a pivotal — even if likely brief — moment toward what U.S. President Donald Trump has branded as ‘energy independence.’
The shift to net exports is the dramatic result of an unprecedented boom in American oil production, with thousands of wells pumping from the Permian region of Texas and New Mexico to the Bakken in North Dakota to the Marcellus in Pennsylvania.
While the country has been heading in that direction for years, this week’s dramatic shift came as data showed a sharp drop in imports and a jump in exports to a record high. Given the volatility in weekly data, the U.S. will likely remain a small net importer most of the time.
By David Middleton – Re-Blogged From WUWT
The Trump Administration appears ready to put the assets of the US armed forces to work in defending US interests in the Global War on Weather.
West Coast military installations eyed for US fuel exports
Originally published October 15, 2018
The administration is interested in partnering with private entities to ship coal or liquefied natural gas through naval installations or other federal facilities, Interior Secretary Ryan Zinke said.
By Albert Albrecht – Re-Blogged From https://www.mmsonline.com
If you can believe the economist, it is on its way to recovery. Machine tool shipments and imports have turned around since the 2009 recession low, and in recent months have steadily improved. After a dismal 2009 and poor start in 2010, quarterly shipments have started to increase, evidence that the industry has started to recover. This is encouraging, if it were not for the fact quarterly shipments fell to record lows and 2009 and 2010. It is like getting a few drops of wine to an empty wine glass—the glass is still less than half full.
By John Rubino – Re-Blogged From Dollar Collapse
Here’s a new indicator for you: It seems that the difference between the price of oil here and abroad is a measure of tightness in the market, with a rising spread indicating higher prices in the future, with all the inflationary pressures that that implies. From today’s Wall Street Journal:
By Bloomberg – Re-Blogged From Newsmax
The U.S. trade deficit narrowed in March by the most in two years, while last week’s unemployment filings were below estimates and productivity gains remained lukewarm in the first quarter.
Here’s what you need to know from the economic reports out Thursday morning:
Most people see currency conversion as something simple that appears because of a need to change currency. The problem is that currency exchange is incredibly complicated and there are so many different things that are analyzed when the rates are calculated. The truth is that exchange rates will always have an impact on business and since the economic recession hit many companies, the impact is a lot higher at the moment. Drastic fluctuations will affect the entire global training market.
By SRSrocco – Re-Blogged From http://www.Gold-Eagle.com
The U.S. exported a stunning amount of gold since the turn of the century. As the price of gold surged along with the massive increase in U.S. debt, gold exports jumped to record highs. In 2012 alone, the United States exported nearly 700 metric tons of gold. The total amount of U.S. net gold exports over the past 17 years equaled the combined gold reserves of six high ranking countries.
By SRSrocco – Re-Blogged From http://www.Silver-Phoenix500.com
The situation in Mexico’s oil industry continues to rapidly disintegrate as falling oil production and rising costs resulted in an $18 billion fourth-quarter loss for the state-run oil company, PEMEX. Part of the reason for the huge financial loss at PEMEX was the fall in the value of the Mexican Peso. While PEMEX’s costs are in Pesos, it sells crude oil and purchases petroleum products in Dollars. Because the Mexican Peso declined 8% versus the Dollar, it put a huge strain on the company’s year-end financials.
By David Middleton – Re-Blogged From http://www.WattsUpWithThat.com
Coal prices are on the rise again. With benchmark rates in Australia up over 30 percent since July — approaching the $100/t mark that prevailed in November 2016 after a massive run-up last year.
And a number of events the past week show that things could get even more heated in coal over the coming months.
Re-Blogged From https://worldview.stratfor.com
The 19th Chinese Communist Party Congress runs Oct. 18-24. The convention marks the start of a transition as delegates name new members to lead China’s most powerful political institutions. But the change in personnel is only part of a larger transformation underway in the Party and in the country — a process that began long before the party congress kicked off and will continue long after it ends. This is the third installment in a four-part series examining how far China has come in its transition, and how far it has yet to go.
By John P Hussman – Re-Blogged From Hussman Funds
Imagine driving a car moving down the road at 20 miles an hour. You hold a rope out the window. At the other end of that rope is a skateboard. If the skateboard is behind the car, yanking the rope pulls the skateboard forward, so the skateboard might temporarily speed ahead until it gets way ahead of the car and the rope tightens again. At that point, yanking the rope will pull the skateboard back, so even while the car continues down the road at 20 miles an hour, the skateboard actually loses ground for a while. Over the long-term, the car and the skateboard move ahead at the same speed, but the speed of the skateboard over shorter horizons depends on its position relative to the underlying trend.
The same proposition applies to the trajectory of numerous economic and financial variables. We have to be attentive to at least two things: 1) the central tendency of growth in underlying fundamentals, and 2) our current position, relative to that central tendency. The difference between the two is what separates longer-term growth from cyclical fluctuations.
By Michael Kosares – Re-Blogged From http://www.Gold-Eagle.com
Most of gold’s downside is geared not to the financial decisions of millions of investors around the globe, as the mainstream media would have you believe, but rather to linear computer algorithms geared to the dollar index. The trading part of the software has been told to automatically place trades at certain correlated price levels and that is why we get these waterfall drops. The rocket launch trajectories to the upside come when the trading function is told to buy and cover the previous shorts.
By Anthony Watts – Re-Blogged From http://www.WattsUpWithThat.com
From PURDUE UNIVERSITY and the “better living through genetics” department comes this press release that is sure to setup an impossible quandary in the minds of some anti-GMO zealots who also happen to be climate proponents…
Planting GMO crops is an effective way for agriculture to lower its carbon footprint.
Model predicts elimination of GMO crops would cause hike in greenhouse gas emissions
Using a model to assess the economic and environmental value of GMO crops, agricultural economists found that replacing GMO corn, soybeans and cotton with conventionally bred varieties worldwide would cause a 0.27 to 2.2 percent increase in food costs, depending on the region, with poorer countries hit hardest. According to the study, published Oct. 27 in the Journal of Environmental Protection, a ban on GMOs would also trigger negative environmental consequences: The conversion of pastures and forests to cropland – to compensate for conventional crops’ lower productivity – would release substantial amounts of stored carbon to the atmosphere.
By Andrew Hoffman – Re-Blogged From http://www.Gold-Eagle.com
It’s Thursday morning – and there are nearly a dozen “PM bullish, everything-else-bearish” headlines worthy of distinct articles. Such as…
1. This shocking, and hilarious, segment of the John Oliver show, depicting how subprime auto lending has officially reached the destructive lunacy of the 2007-08 subprime mortgage market. Not to mention, subprime student lending, as a whopping 37% of the $1+ trillion, government-underwritten student loan “market” is now delinquent.
2. Obamacare is literally on the brink of collapse, with insurers losing $2 billion in 2015 alone, and pulling out of the program en masse
By Gordon T Long – Re-Blogged From http://www.Gold-Eagle.com
Central Bankers Fighting An Unprecedented Global Slowdown
The mainstream news sources seem determined to ignore the extent of the global slowdown in trade. Whether exports, imports, industrial production or whatever your preferred metric, the facts are undeniable. Nevertheless, the mainstream media chooses to refuse to cover it. It begs an obvious question of – why?
By Michael Pento – Re-Blogged From http://www.Silver-Phoenix500.com
Last week China’s central bank (the PBOC) cut borrowing costs for the sixth time in a year and eased the reserve requirement ratio (RRR) for the third time this year, in a desperate attempt to achieve the prescribed growth target of 7% off the back of ever-increasing credit issuance. The PBOC lowered the one-year benchmark bank lending rate by 25 basis points to 4.35%, the one-year benchmark deposit rate was also lowered by 25 basis points to 1.5%.
In addition to this, the RRR was cut by 50 basis points for all banks, bringing the ratio to 17.5% for the biggest lenders, while banks that lend to small companies and agricultural firms received an additional 50-basis-point reduction to their RRR.
This latest round of easing followed a report showing that despite a surprise devaluation of the yuan in August, economic growth in the third quarter was the slowest in six years. Goldman Sachs Group Inc. estimates the easing will release 600 to 700 billion yuan ($94 billion to $110 billion) into the financial system, keeping borrowing costs at the regime’s all-time low.
Last year, in May, the US Dollar began to strengthen against most of the other currencies around the world. More correctly phrased, I believe, is that the other currencies fell against the Dollar, since the US government – running massive Balance of Payments deficits – and the US Central Bank, the Federal Reserve, continued to print paper Dollars with wild abandon.
As the Dollar became relatively more expensive – on average by 20%! – than the currencies of our trading partners, US exports became less competitive than previously, so our exports have fallen. Similarly, other countries’ exports to us – our imports – have fallen in price, and US imports are up dramatically.
By Michael Pento – Re-Blogged From http://www.Gold-Eagle.com
The Thompson Reuters/Jefferies CRB Index (CRB) is back down to the panic lows of early 2009. For those who think the CRB Index says nothing about global growth…invest accordingly at your own peril.
If you believe this commodity crunch is all about some temporary oil supply glut, think again. There are 19 commodities that make up the CRB Index: Aluminum, Cocoa, Coffee, Copper, Corn, Cotton, Crude Oil, Gold, Heating Oil, Lean Hogs, Live Cattle, Natural Gas, Nickel, Orange Juice, Silver, Soybeans, Sugar, Unleaded Gas and Wheat. The value of the weighted average of these commodities is screaming one thing loudly: the rate of global growth is plummeting just as it was at the height of the Great Recession.
Over the last decade or so, I have been in contact with the leaders of several countries, offering suggestions on how they can turn around the “difficult” economic situations which their countries were living through. In Greece, I contacted, among others, Syriza Party leader Alexis Tsirpas, several years before his recent election as Prime Minister.