"Greatest Energy Crisis in History"
Europe and Asia are facing “the largest energy crisis in history” according to the International Energy Agency, with over 50 countries now implementing emergency measures for oil shortages.
But not in America. Where we drilled baby drilled in the face of environmentalists who failed to force us to eat the Pixie farts.
50 Shades of Desperation
Two months into the Iran war, the Wall Street Journal reports that over 50 countries have now implemented emergency measures.
Some are rationing fuel. Some are giving cash handouts so the poor don’t riot. Some are closing universities, closing factories, or mandating work from home just like Covid.
Europe lost 75% of its jet fuel -- cancelling flights in the all-important tourism season. Australia’s down to 30 days of jet fuel before it cuts off like a giant Robinson Crusoe with kangaroos.
Ireland’s government barely survived nationwide gas protests.Pakistan mandated a 4-day workweek -- and closed all universities to avoid riots.Sri Lanka declared every Wednesday is now a national holiday.
In India you can’t cremate with gas -- you gotta use firewood or break up the furniture to see dear uncle Sanjeet to the next world.
Egypt ordered an effective nationwide curfew at 9pm -- shops and restaurants have to close and they’ll turn out the streetlights, leaving you to packs of stray dogs that are Egypt’s national animal.
In Bangladesh there have been multiple cases of gas station workers beaten to death over fuel.
Note this is all with a global release of 400 million barrels of strategic reserve -- replacing about half of lost supply from Iran.
In other words, whatever we’re seeing now, it goes Mad Max when the reserves run out.
It’s not the War, it’s the Strait
Now, the key for oil isn’t the war, it’s the Strait of Hormuz -- Bill Clinton recreationally bombed Iraq through the 90’s and oil didn’t care.
The Hormuz headlines flip by the hour but oil futures are projecting disrupted supply into 2027.
Meaning it’ll keep getting worse in Europe and Asia as they run out.
Meanwhile in America we’ve actually got more oil than we need between what we drill and what we import from neighbors like Canada, Mexico, Colombia and now Venezuela.
In fact, we’ve got so much armadas of European and Asian tankers are coming to America to sip at our plenty. Turning America into what one analyst called “the emergency gas station of the world.”
What’s Next
Even without shortages gas prices are still high in America -- because of that armada of foreign buyers. But the silver lining is America’s got thousands of oil wells sitting idle waiting for higher prices. Plus 12 million acres of inactive oil leases that are also waiting for higher prices.
These could crank out another 1 to 2 milion barrels a day. Making America’s inactive wells the 7th biggest oil exporter in the world.
It’ll take time -- and it would require Trump slash environmental red tape. But if oil does stay over 100, America goes from the world’s emergency gas station to the world’s everyday gas station.
Meaning hundreds of thousands of oil jobs. Billions in exports -- there goes our deficit with Europe and Japan. And an extra million or two barrels to reduce oil prices long after the war’s over.
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So what are we waiting for? When is all this supply coming on line? I’m still paying less than $5 in Florida, but California has created a disaster. Let’s bring this online