Another Key Aspect of Energy ‘Dean’ Charles Maxwell’s Nightmare Oil Scenario Appears to be Coming True
Submitted by EnergyTechStocks.com
Given the shocking forecast for the future of oil that was laid out for EnergyTechStocks.com by the “dean” of energy analysts, Charles Maxwell – a future where global oil production is falling and U.S. gas prices are rising to as much as $15 a gallon – it’s important to keep track of whether Maxwell’s nightmare scenario appears to be starting to come true. (For Maxwell’s complete forecast, see “Dean” of Energy Analysts Charles Maxwell’s Disturbing Visions of an Oil-Scarce Future.)
Last week EnergyTechStocks.com took note of the fact that, just as Maxwell predicted, it appears as if OPEC may not be capable of pumping more oil, quite possibly because OPEC members haven’t properly maintained their oilfields over the past 30 years. (See Prophet Of Doom Charles Maxwell’s Worst Fears About OPEC Production Problems Appear To Be Coming True.)
Now it’s beginning to appear as if another key aspect of Maxwell’s nightmare oil scenario may be coming true, the part about how oil companies will be forced to make up for shortfalls in global production by drawing down their inventories, a process Maxwell believes will leave the oil giants high and dry within a few short years, setting off round after round of skyrocketing price rises as the world is forced to come to grips with oil shortages.
Government statistics indicate a pattern has recently developed where commercial oil inventories are declining as supplies of finished products build, suggesting that oil companies are indeed increasingly tapping their own inventories to meet demand. Whether this is because oil refiners are just loathe to pay today’s high prices, or because there simply isn’t enough oil available, remains to be seen. Many observers believe the market is amply supplied, but a more accurate interpretation may be that the current high price of oil represents price-induced rationing as the market attempts to squeeze out demand.
Should the latter be the case, then oil company crude drawdowns are underway, as Maxwell forecast, and the world is moving closer to disaster.
