In 2019, just 1 ½ years ago, America was hailed as having the greatest ‘surplus of cheap gas in the world’. We were oil independent. Our economy was growing expeditiously! People were happy! And a New Age of Prosperity was beginning – albeit not of the Global Order.
So how did we reverse that entirely within just 2 years? Where oh where did all that surplus go?
Europe first reported a shortage. It’s gas tanks are 77% full with 80% of supplies coming from Russia, Norway and Algeria. What is their holdup? “Russian and German regulators are in a debate as to whether new regulations apply that were put in place after the pipeline was given its final investment decisions.” ~ HIS Markit. Germany’s regulator announced in September it has four months to complete certification of Russia’s Nord 2. That would indicate the shortage is purely political with citizens literally paying the price while Germany blames Russia!.
Norway raised its gas prices 700%. Why? Because it could.
And yet Biden threatens Russia not to profit on the crisis. Short Term memory: If I recall it was Obama who initiated an oil and gas war with Russia tanking the price in the hopes that their economy would spiral unabated. It didn’t work.
The US is the world’s largest producer of natural gas exporting 10% of it’s annual production. But Biden cut down shale production which is a by-product of natural gas. Thus the US has gone from a net exporter to a net importer. Spiking investor concerns. So who is using up the natural gas?
China. China’s imports are up roughly 20% this year. January 2021, China’s largest supplier, Australia’s main producer, Woodside, shut down it’s LNG trains for the entire year due to maintenance issues. As in -0-. As a result, US shipments increased depleting US reserves that were already hampered by Biden’s shale debacle.
In other words, three separate manipulations have created shortages: 1. Germany refusing to certify Nord 2, and 2. The US picking up the slack for Australia in shipments to China, and 3. Biden cutting shale production.
Warmer than normal weather in the US has now factored into the inventory picture which seems to fluctuate on a media basis – monthly, currently citing inventories are down only 4% from the five year average. Yet the price of natural gas has risen 51% from October 2020. In essence revealing the manipulated spike.
Oil and Gas production is down 20% from 2019 when output reached roughly 14 million barrels per day. Today the output is 11 million with absolutely no direction of it coming close to previous levels. Although production is only down 20%, gas prices have doubled.
These are NOT parallel numbers. Exxon Mobile’s share price has doubled in the past year while revenue in 2020 tanked 30%, first half earnings went from a loss of $(1.69) billion to $7.42 billion profit. DESPITE a massive push for renewables by the Biden Handler Regime. But then in 2019, Exxon signed a contract with China to provide 1 million metric tons of natural gas per year for 20 years.
Again exports of crude oil & petroleum products to China dropped significantly in the Trump era of 2019 only to increase this year by over 400% for the first quarter. Obviously, Biden’s pleas for the Saudi’s to send more oil to the US is a ridiculous media spill that is indicative of his catatonic brain stem. US shortages are thus exasperated by taking what we have and giving it to China while doubling the pump price.
Now with US shipping ports in Liberal California and New York congested beyond repair, our ingenious government says we just need to import less cheap products from China. These same liberals demanded we increase our trade with China when Trump began his sanctions. It is as though the whiteboard of historical information has been erased and we are supposed to simply stop blinking.
But Then We Are in Alice’s Wonderland… RIGHT?