US Set to Become World’s Top Oil Producer

Re-Blogged From Newsmax

The U.S. government sees oil production further climbing next year even amid transportation logjams in the country’s most prolific shale play.

The Energy Information Administration sees U.S. crude output averaging 11.8 million barrels a day in 2019, up from its 11.76 million barrel a day estimate in the June outlook.

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Gold-Stock Summer Lows

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks have been drifting sideways to lower like usual in their summer doldrums. They are likely near their major seasonal lows ahead of a strong autumn rally, a great buying opportunity. Gold rebounding higher will be the primary driver fueling the gold-stock advance, dispelling today’s bearish psychology. And strong Q2 production growth will likely play a sizable role in restoring favorable sentiment.

Market summers have long been gold’s weakest time of the year seasonally. Junes and early Julies in particular are simply devoid of the big recurring demand spikes seen during most of the rest of the year. With traders vacationing to take advantage of warm sunshine and kids being out of school, markets take a back seat. So there’s no outsized gold buying driven by income-cycle or cultural factors this time of year.

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But “We Owe It To Ourselves”

By Keith Weiner – Re-Blogged From http://www.Gold-Eagle.com

Have you ever heard someone say this? It falls into the category of, it’s so perverse, so wrong, and so wrong-headed that there has got to be a constituency out there somewhere, to assert this!

First, let’s head off at the pass the objection that the majority of US government debt is held by foreigners. As of March this year, the US Treasury estimates that $6.3 trillion worth of Treasury bills and bonds are owned by foreign holders. This is not even close to the majority of it.

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The Price Of Eco-Madness: California’s Oil Production Collapse

By Anthony Watts – Re-Blogged From http://www.WattsUpWithThat.com

From the “everything is leaving California these days” department. The collapse of the oil industry in California, once our second-most-important producing state, is a very sad thing to see.

The U.S. shale oil revolution has completely passed the state by.

California crude oil production in thousands of barrels per day since 1980. Data source: US Energy Information Administration

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Coal vs Natural Gas Forecast

By David Middleton – Re-Blogged From http://www.WattsUpWithThat.com

Over the past 10 months or so, articles like this have been a “dime-a-dozen”…

ENERGY TRANSITIONS

Coal plants keep closing on Trump’s watch

Benjamin Storrow, E&E News reporter
Climatewire: Tuesday, February 21, 2017

In the next four years, utilities have plans to close 40 coal units, federal figures show. Six closures have been announced since Trump’s victory in November.

E&E News

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Saudi Strikes Back Against U.S. Shale

By Jody Chudley – Re-Blogged From The Daily Reckoning

Here we go again…

The price of oil is plunging.

For the first quarter of 2017 West Texas Intermediate (WTI) held a pretty stable range between $54–58 per barrel. Now it is back to the roller coaster that we have been on since mid-2014.

As I write this, WTI is struggling to hold $43 per barrel and is sinking like a rock.

Oil prices are falling fast

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On Say’s Law

By Alasdair Macleod – Re-Blogged From http://www.Gold-Eagle.com

One of my regular readers has raised the important subject of Say’s Law, the denial of which both Keynesian and modern monetarists are emphatic. They need this fundamental axiom to be untrue to justify state stimulation of aggregate demand. Either Say’s Law is right and state intervention is economically disruptive, or if it’s wrong modern economists are right to ignore it and progress their science beyond it.

The basis of post-Keynesian economic stimulation assumes a breakdown between consumption and production can occur, and the correct response is for government to step in and revive failing demand. It is the favored explanation of the 1930s slump. Obviously, Say’s Law would have to be discarded.

This article revisits this subject, explains where Keynes went wrong, redefines the Law to include money as a good, and explains why supply-side is less destructive than demand management. Say’s Law is crucial to understanding why increasing state intervention to revive economic demand cannot work, and has led us into the current crisis.

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