We are in an earnings recession, and it is expected to get worse

We need to keep our heads clear on what is happening to the economy. Although pundits propose various ills to explain the daily assault on our livelihoods, at the end of the day it's energy that underpins everything. A look at the situation finds two factors that are dragging the industrial economy into a morass from which escape is likely impossible. 

First, the net energy provided by fossil fuels, oil in particular, is gradually falling, which means that the surplus energy left over to run the economy gradually declines. 

Second, the proportion of energy from renewable sources is rising, which means that an increasing amount of dilute, low-quality energy is being fed into the system. 

This aggravates the problem by creating a further drag on the economy. Unless some new, inexpensive, high-quality, and high-density form of energy is found soon, we are in some deep doo-doo. -- RF

DYI: 

Rice Farmer is completely correct.  However over the shorter run I envision oil and gas prices dropping to reflect an upcoming recession with oil prices possibly lower than $30 a barrel for a mild downturn that I expect to occur.  If things get ugly – a far less possibility – oil could drop below $20.  If that were to happen then this blogger would be wildly bullish for the oil and gas industry.  So…Hold onto your hats; over the next few months things are going to get very interesting especially for value players!

As of 9/21/19

$58.09

DYI