Global Energy Stressors: Can Anybody Help

Peter Zeihan 4 min

It all adds up to a pretty bleak picture for energy markets. Best guess is that the shortage of 10 to 12 million barrels per day is going to go up over the next three months.

Key points

  • 0:00

    Most spare capacity comes from OPEC members like Saudi Arabia.

  • 0:00

    Houthi attacks force more Saudi crude offline rather than online.

  • 0:00

    New producers in the Western Hemisphere offer only incremental gains.

  • 0:00

    Canada's heavy oil sands take years or decades to bring online.

  • 0:00

    Angola's offshore deep water production is failing.

  • 2:10

    Oil traders rely on data that is currently missing or unreliable.

  • 2:10

    Iran does not tell us what they are producing or shipping.

  • 2:10

    Russia is not even generating data that can be looked at.

  • 2:10

    China reduces exports of refined oil product impacting the Pacific Rim.

  • 2:10

    The shortage of 10 to 12 million barrels per day will go up.

  • 2:10

    Houthi attacks significantly reduce the world's buffer capacity.

  • 2:10

    Market reaction will lead to demand destruction since 2007.

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