A favorite Country song of mine is about a man who's been out all night and finally comes home to face his wife. After giving her the runaround, he comes to a stunning realization:
You know the time comes when a wise man knows
the best thing that he can do is just look her in the eye
and beg for mercy and face the bitter truth . . .
I can't help but notice the apparent allegory in those lyrics as it applies to the current energy situation in the world.
In the grand scheme of things, the energy juggernauts, at this very moment, are making a desperate effort to squeeze out just a few more lies before they actually have to come clean.
But the transition toward honesty has been a slow one, and the foolish wife that is society is all but completely fed up with how the scenario has played out thus far.
Now, I don't know if Big Oil will ever beg for mercy, but the bitter truth is upon them (and us), and one need only look to the headlines on any given day to see what I'm talking about.
Big Oil's Blues Clues in the News
Today, sadly, it was announced that ExxonMobile's quarterly earnings sagged to a petty $10.26 billion. Please join me in consoling them with a puppy-eyed aww.
What was the reason for this 1% drop in earnings? Well, depends on how far you read into it, I guess.
The headline that caught my eye was, "Exxon Profit Dips on Natgas Price Weakness." But that just doesn't do it for me.
Sure, European natural gas prices fell 14%, but US prices we're up 8%--and they sold more of it here anyway. And who thinks of Exxon as a natural gas company anyway?
But then, tucked away in that same article with the natural gas headline, there it was: the ever-so-slight mention of peak oil. But of course the author didn't call it that. He brushed it off as field decline. Touché, my friend.
Apparently, Exxon's earnings from exploration and production plummeted over 16%. Shouldn't that have made the headline: "Exxon Profit Dips Because There's Not Enough Oil"?
Like I said, we're rounding the corner to bitter truth, but we're not there yet.
And, speaking of rounding the corner, shouldn't this chart--and the underlying theory--be mentioned more frequently and consistently than it is?
Of course not. It's just a silly theory anyway. What was I thinking?
Everything is fine. Use as much oil as you like. Keep filling up that 20-gallon tank in your SUV every week.
Of course, I'm being sarcastic. But what's worse is that Big Oil is mocking you.
Exxon's oil field production may have been down, but what the article called "downstream" revenue was up over 35%. Downstream means refining and retail sales.
That's correct. Exxon is producing less oil, but due to continued demand, the profit margin on refining and gasoline sales is higher than ever.
Facing the Bitter Truth
The world is running out of cheap oil. There may be lots of oil left, but it's going to be terribly expensive to extract and refine. And it's you--the consumer--who is going to bear the brunt of these costs. That is, unless there's some major shift in our political and media agendas or you begin to hedge against it now.
Green Chip and its publisher, Angel Research, are focused on providing you with solutions to the latter.
Listen, the evidence of the looming energy crisis is right in front of you. Whether it's the Exxon scenario I've just described, the rising price of oil--which broke $77/barrel today--or any of the other energy stories that grace the news every day.
We know that all the different scenarios and nuanced factors steering us toward this calamity are too vast to divulge in 800-word letters.
That's why we're offering our first ever conference. It's called "Profit from the Peak," and you can sign up today.
All of Angel's experts will be there to give you the most lucrative ways to profit from and hedge against the coming of Peak Oil.
To learn more, click here.
Until next time,