mortiz059

Okay, I admit that the premise of Norwegian television's new political thriller series "Occupied" is far-fetched. But that premise is a window on just how addicted to fossil fuels we are. In "Occupied" Norway's Green Party wins parliamentary elections and makes good on its ( not-altogether-fictional ) promise to shut down oil and natural gas production in the country as a way of addressing climate change. This fictional Green Party simultaneously builds a thorium-fueled reactor to provide electric power. The Greens promise many more reactors as they embrace the electrification of transportation to reduce Norway's need for liquid fuels. Norway's oil and gas customers--the countries of the European Union and Sweden--object to the loss of critical fossil fuel supplies. They conspire with Russia to force Norway to restart oil and gas production. At first this involves a smallish invasion by Russian soldiers and a takeover of offshore oil and gas platfor

"Down" is such a downer word. That's why when prices fall for practically anything Wall Street wants to sell you, Wall Streeters talk about volatility instead. Volatility allows for the possibility that prices will recover soon and go to new highs. Any setback is just temporary. The market turbulence, it seems, is merely designed by invisible market gods to test your character as a long-term investor. Don't give in to panic, the investment people say, and you'll be rewarded. Until you aren't! A year ago I said the crash in commodity prices signaled a weak economy and that financial markets would eventually have to reflect this fact. The widely watched S&P 500 Index closed at 1,994.99 on January 30, 2015 just prior to the publication of the linked piece. Last Friday's close was 1906.90. The U.S. stock market hasn't exactly reflected the weakness in commodities, but it hasn't gained any ground either. In addition, last August I wrote that low oi

My favorite Texas oilman Jeffrey Brown is at it again. In a recent email he's pointing out to everyone who will listen that the supposed oversupply of crude oil isn't quite what it seems. Yes, there is a large overhang of excess oil in the market. But how much of that oversupply is honest-to-god oil and how much is so-called lease condensate which gets carelessly lumped in with crude oil? And, why is this important to understanding the true state of world oil supplies? In order to answer these questions we need to get some preliminaries out of the way. Lease condensate consists of very light hydrocarbons which condense from gaseous into liquid form when they leave the high pressure of oil reservoirs and exit through the top of an oil well. This condensate is less dense than oil and can interfere with optimal refining if too much is mixed with actual crude oil. The oil industry's own engineers classify oil as hydrocarbons having an API gravity of less than 45--the higher th

Circumstances have conspired to prevent me from writing a post this week. I should be back next week Sunday, January 17.

I'm taking a short break and expect to post again on Sunday, January 10.