U.S. Oil Stockpile Highest Since 1931

[JEast]

So much for Peak Oil, maybe :)

 

http://blogs.wsj.com/moneybeat/2013/05/30/u-s-oil-stockpile-highest-in-more-than-80-years/

 

Cheers

JEast

[value-is-what-you-get]

That is a very entertaining article!

 

The reality is quite different. 

 

Measured against US consumption at the time, it is 6 month domestic supply - a very nice cushion.

Measured against US consumption today, it is a 20 day supply - basically paycheck to paycheck.

 

Measured against global consumption at the time,  it is a 73 day global supply equivalent.

Measured against global consumption today, is is just under a 5 day supply.

 

In 1931, one could poke a hole in the ground in Texas and run from the gushers.

Today we are basically wringing out the sponge at the bottom of the empty bucket with shale extraction.

 

The article is idiotic in it's assumptions.

 

We will never run out of oil, but we've run out of cheap oil.

 

EDIT:  Forgot to add the punchline . . . and the price of oil doubled from 1931-1935 despite the stockpile, great depression etc.

[JEast]

I see that you were not fooled by the numbers as it is all relative (as nearly always) when consumption is increasing over time.  True that we will never run oil, just the price we pay.