... we just keep finding more of the stuff
From Zero Hedge:
The oil in the ground will run out some day. But as the discovery of proven reserves continues to significantly outpace the rate of extraction, the claims that we’re facing immediate shortages looks trashy.
Some may try to cast doubt on these figures, saying that BP are counting inaccessible reserves, and that we must accept that while there are huge quantities of shale oil in the ground, the era of cheap and readily accessible oil is over. They might cite the idea that oil prices are much higher than they were ten years ago. Yet this is mostly a monetary phenomenon resulting from excessive money creation beyond the economy’s productive capacity. Priced in gold, oil is still very cheap — almost as cheap as it has ever been:
So no. I’m not lying awake at night worrying about imminent peak oil. There’s plenty of extractable oil, and renewable energy will eventually supplement and replace it. But will politics get in the way of energy extraction? The United States has huge hydrocarbon reserves, yet regulation is preventing drilling and shipment, leaving America dependent on foreign oil. And the oil companies themselves are largely to blame — after Deepwater Horizon, should anyone be surprised that politicians and the public want to strangle the oil industry?
The President calls himself an "all of the above" sort but his actions betray his words. He has committed himself fully to the business of picking winners and losers in his energy policy. An aggressive pursuit of crude and shale oil and natural gas would jump-start and sustain a robust economy that could then, with private capital, fund the fledgling green energy sector instead of throwing tens of billions of dollars at the politically connected and technology that, quite simply, is not yet market-ready.
And somewhat related if we're talking politics: Hey, that speech on the economy on Thursday was a big flopper. How about an extra-constitutional executive order on illegal immigration to distract everybody?
Here's Leslie at Temple of Mut:
Dear Readers: While I usually strive to put some humor into my posts, as it helps sustain our emotional balance during these turbulent times, I find little to joke about today. President Obama, in an exceedingly cynical and politically-motivated move, has forgotten the basic tenets of the US Constitution and legislated by executive order.
Leslie predicts Obama will move on to forgiving student loan debts and underwater mortgages via EO sometime prior to November. Markets would necessarily take a dump but when you are on a re-elect panderfest run like this guy is, anything is possible.
Enjoy your Father's Day, everybody. We'll see you tomorrow.