Gasoline futures spiking, oil production halted, and tankers sitting in the Gulf waiting to drop off their oil. Confused about what hurricanes really mean for oil? Here’s some cause-and-effect that will blow you away (figuratively of course), crucial info as we stare down the eye of another monster hurricane…
Jeffrey Brown visits Peak Prosperity to diagnose the effects of Harvey on oil production as we prepare for the onslaught from Irma:
This week, Hurricane Irma threatens to deliver a similar massive punch to the oil patch in the Gulf.
To discuss the ramifications from these storms on the oil markets, geoscientist and oil explorer Jeffrey Brown returns to the podcast. He calculates that Harvey alone will have long-lasting effects such as lingering supply shortages, but his greater focus is attuned to the growing validation of his Export Land Model, which calculates the rate at which oil-producing nations cease to become net exporters as their domestic consumption increases. Since it’s formulation in 2005, more and more countries have switched from being net-exporters to net-importers, and the data in aggregates is strongly suggestive of a flat-lining in world oil production — the consequences of which are immense: