For months, we were told that this moment was approaching. At first a lot of people didn’t want to believe it, and those that were sounding the alarm were mocked. But now even the mainstream media is being forced to admit the truth.
When the war with Iran began, the world was sitting on vast stockpiles of oil that we could chew through to keep the global economy operating normally. Unfortunately, those stockpiles have rapidly dissipated and the conflicts on the other side of the planet are intensifying. As a result, we now find ourselves in unprecedented territory.
The world is using a lot more oil than it is currently producing.
So something has got to give.
For over six months we have been running through our reserves, and at this stage the mainstream media is openly telling us that a tipping point has arrived. The following comes from a Wall Street Journal article entitled “Oil executives say the great fuel crisis is here”…
American oil executives warned for months that the prolonged closure of the Strait of Hormuz was bound to cause a fuel crisis. Now, they say it is here.
Commercial fuel stocks around the world have been depleting for more than six months, and strategic crude reserves can’t be tapped much further. Attacks last week shut down a crucial crude pipeline in Saudi Arabia that bypassed the Strait, stranding at least 2.5 million barrels a day from an already tight global oil market, analysts estimate.
“All these mechanisms helped to mitigate the price and supply risk,” Chevron Chief Executive Mike Wirth said Friday at an energy conference in Austin, Texas. “Those have largely now played out, and we don’t have nearly the buffers in the system that we did when it began.”
Those oil executives are right.