Some quotes from Evans-Pritchard’s latest article, “Oil investment crashes to 60-year low, incubating next energy shock“:
“The International Energy Agency said wells are depleting at an average rate of 9pc annually. Drillers are not finding enough oil to replace these barrels, preparing the ground for an oil price spike in the future and raising serious questions about energy security.”
“This decline tightens the future stranglehold of the OPEC cartel and Russia on global oil supplies, although the consequences will not be obvious until it is too late.”
“The IEA said global spare capacity is wafer-thin at just 1.7m barrels a day (b/d), stripping out idle capacity in the war-torn trio of Libya, Iraq, and Nigeria. This implies that the market will swing from glut to scarcity with lightning speed once the energy cycle turns.”
I think I’ll stop there. Starting to sound like one of those buy-guns-and-butter-now! newsletters that tries to scare you into buying a subscription. You can read the rest yourself here.