All we’ve been hearing about is that our oil reserves are near an all-time high… which I think is a good thing… since it puts a downward pressure on the price of oil… which means we consumers pay less for everything… which means greater corporate profits… etc., etc.
The “near an all-time high” has been an important investment theme, too, since it signals a glut of oil on the market.
I just read something, though, that scares the hell out of me.
Our “all-time high” is 3 billion barrels of crude… which sounds like a lot..
… but according to CNBC it’s only one month of global consumption… ?
That’s it? That’s our big cushion?
Yikes.
I think we’re a ways away from the bull case… but given that statistic… and unless alternative energy sources become much more prevalent… you can see how the bull case will eventually (sadly) run rampant.
Royal Blog 