The surging of oil will continue.....

Why will oil surge again for the foreseeable future....

This was the blog I posted on Sep 23 when oil hit below $80. Well, my timing was nearly perfect as oil bottomed just one trading day later on Sep 26 and then started to move up. Now it is over $90 with over 10% hike in less than 2 months. But I think it has a lot more to go. Below is a list of what has composed of the clear evidence for the ongoing energy crisis. 

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By Jeff Brown

This is a timely topic because aside from it being mid-term election week in the U.S., it's also the week of COP27. Every year, the United Nations hold this climate change conference. And it's proven to be one of the most ineffective and hypocritical events of the year.

I remember last year's event quite well. The outcome of which was the major announcement to transition completely away from coal, signed by 40 nations.

I used the word "hypocritical" before because the exact nations that one would think should be leading by example – the U.S. included – are doing exactly the opposite.

Each of the points below stand in stark contrast to the goals of COP26:

• In the last two years, the U.S. has increased its coal usage for electricity production to 25%. This is the result of economic policy that reduced natural gas production for the purpose of electricity production.

• To power its electricity needs, Germany is now tearing down a wind farm so that it can make space for an open-pit mine to dig up coal. (Smart clean energy plan: Remove wind power and increase coal mining and the burning of coal for electricity…)

  This is the direct result of German energy policy designed to shut down all nuclear fission power plants and ultimately rely on all "renewable" energy. In the end, Germany became almost entirely dependent on Russia's natural gas… and we all know how well that went.

• Japan radically ramped up its use of coal after the Fukushima nuclear meltdowns. I was living in Tokyo at the time and lived through the energy crisis.

  Japan shut down all of its nuclear power plants and initially turned to natural gas, but then quickly started building coal power plants. Coal is far less expensive than natural gas, which was causing problems for Japan's trade surplus. Japan continues to use coal to power 32% of its energy needs.

• But what's happening in much of the rest of Europe is arguably worse. In an effort to "virtue signal" and appear to be "sustainable" and "clean" by not using coal, European countries have turned to wood pellets to generate electricity.

  Now, it's true that wood pellets aren't coal, but I would argue they're much worse. Old, protected forests in Eastern Europe and even the U.K. are being decimated in order to harvest the raw materials necessary to create these wood pellets.

  To highlight the insanity even further, fossil fuels power the equipment and manufacturing plants that produce these wood pellets, which are then used to generate electricity across Europe. 

  The E.U. uses wood pellets more than any other region in the world. And the worst part? Wood pellets burn even dirtier than coal! Yet wood is considered "sustainable" and "renewable" because trees will grow back. But if we cut them all down and burn them… where will that leave us?

I wish I was making this up. But I'm not. And this is just a short list of the absurd policies that are taking place in developed countries.