The Energy Disaster Kicking Into Full Gear: World Is Totally Unprepared For What’s Ahead

This echoes what Goldman’s commodity analysts wrote overnight, warning that “global isolation measures are leading to an unprecedented collapse in oil demand which we now forecast will fall by 10.5 mb/d in March and by 18.7 mb/d in April” or nearly the 20mb/d forecast by the IEA. As Goldman sumamrizes, “a demand shock of this magnitude will overwhelm any supply response including any potential core-OPEC output freeze or cut.”

I believe the IEA’s forecast for a decline of 18.7 million barrels per day (mbd) in April will be grossly understated. It will likely fall 25-30+ mbd by April. Interestingly, the IEA – International Energy Agency shows that global Jet fuel demand will fall about 2 mbd. However, with U.S. commercial air traffic down 90%, Unprecedented Collapse: U.S. Airline Traffic Currently Just 10% Of Normal, I see global Jet fuel consumption down at least 4+ mbd in April, double the IEA’s figure.

Now, it seems as if the IEA believes Wall Street’s forecast that there will be a “V-Shaped Recovery,” (hence, the v-shaped oil chart) and everything will be back to normal by the end of the year. I highly doubt it. Also, I find it quite interesting that the IEA hints that the Saudi’s and Russia need to halt all production to balance the market?Really?What about the United States?? Why isn’t the U.S. included in these figures??

MORE BULL SHYTE: the U.S. Calling on Saudis to Halt Plan to Unleash Record Oil Supply

With the United States now the largest oil producer in the world, why are Oil Company CEO’s and politicians calling for Saudi Arabia to halt oil supply? It’s quite simple.. the U.S. has the most expensive and unsustainable oil supply in the world. If we go by FACTS and not hype or political grandstanding, the U.S. Shale oil industry has increased oil production growth FIVE TIMES more than Saudi Arabia over the past decade:

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