• 7 hours PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 9 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 11 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 12 hours Schlumberger Warns Of Moderating Investment In North America
  • 13 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 14 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 16 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 17 hours New Video Game Targets Oil Infrastructure
  • 19 hours Shell Restarts Bonny Light Exports
  • 20 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 1 day Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 2 days Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 2 days Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 2 days OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 2 days London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 2 days Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 3 days Conflicting News Spurs Doubt On Aramco IPO
  • 3 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 4 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 4 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 4 days China To Take 5% Of Rosneft’s Output In New Deal
  • 4 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 4 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 4 days VW Fails To Secure Critical Commodity For EVs
  • 4 days Enbridge Pipeline Expansion Finally Approved
  • 4 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 5 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 5 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 5 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 5 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Dave Zgodzinski

Dave Zgodzinski

Dave Zgodzinski is the editor of the Green Miner newsletter and thegreenminer.com web site.  The Green Miner is dedicated to searching out valuable investments in…

More Info

Defying the Laws of Finance and Physics

Defying the Laws of Finance and Physics

Fiscal cliffs and debt ceilings. The walls closing in. After weeks of approaching one near death experience and finally dodging the bullet, another near death experience quickly approaches for the US government. Governmental action/non-action thrillers are a steady stream of entertainment for the financial markets.

After a few of these events/non-events, the definition doesn’t seem to apply any more – it’s not really a near death experience, it’s just another hassle – something that can be dodged or delayed.  A law of finance that can be avoided.

Indebted governments are like characters in a video game, bobbing and weaving to avoid the zombies trying to grab them and suck them in.

Or like a moonshiner driving his stash of white lightning, barrelling full speed down country roads to avoid the revenuers.

That’s what it’s like when you’re a deadbeat avoiding your creditors. You become the hero in a self-delusional drama. The folks that want their money back are the villains.
Bankruptcy is both the ultimate shame and the road to salvation.

It can be exciting. Near death experiences keep us from getting bored. But after a while the adrenaline wears off, and the debts are still there.  The laws of finance remain in place and they demand consequences.

There are times when markets can avoid thinking about these debt dramas and there are times when watching governments battling to stay afloat is the only thing that matters. 

When the avoidance game is played out, the United States, like many high debt countries around the world, will have to make tough choices. Governments will have to shrink expectations and expenditures. The shrinkage will freak out many citizens and the consequences will have to be digested by the markets.

The way the world spends energy is similar to the way governments spend money. Day in, day out, we burn through fossil fuels that took millions of years to create. We do it because we are addicted and we can get away with it.

We can see that there will eventually be some negative consequences, but for now, it seems that we can use petroleum as fast as we can, go on a joy ride, and avoid the laws of physics.

We know that petroleum reserves will eventually dry up. There is a limit even with continuously advancing technology. There is only so much oil and gas available and it will be gone in a handful of generations. But like piling on debts, we figure our great grandchildren can somehow cope with that.

Many signs point to damaging climate change being the result of our overuse of hydrocarbons.  But the weather changes. One week is hot and dry and the next week it rains and cools. Like farmers we hope that drought will ease and the heat will subside, that the problems won’t get too big – that we can avoid a real reckoning.  We hope that the really nasty hurricane will hit the next state.

The flow of money to pay for our heavy use of imported petroleum creates serious geopolitical problems. We apply military solutions in attempts to solve the problems. But using the military creates even more problems, not the least of which is rapidly escalating government debts.

We can convince ourselves that the bad guy is the severe weather. In another movie, the bad guy is the Jihadist kidnapping oil workers. But these enemies are just the equivalent of bill collectors. The real problem is the crazy way we spend energy.

Eventually in this gangster flick the laws of physics kick in, like the laws of finance. The adrenaline wears off, and the hangover remains.

By. Dave Zgodzinski




Back to homepage


Leave a comment
  • Jimmy on January 24 2013 said:
    The last part says it all, its how we spend energy, and we spend it on immediate survival and dominance using the reptilian part of our brain, not the rational parts of the brain.

    The result is what we have now, people are not coping, and havent for some time now, the debt will never be paid, just more diversions and distractions to mask the decline.

    But i dont think there hasnt been any rational decisions made, trying to eradicate hemp is a suicidal behaviour when you consider its ability to feed and fuel people, ho hum.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News