Getting back closer to the subject an interesting article has appeared on Resilience.
The US oil production has always included lease condensates.
These are gases that turn to liquid at the well head.
It seems that true oil production including the tight shale oil has
been on a plateau since 2005 after you delete the condensates.
The condensates cannot be used by the refineries as oil.

Normal crude oil has been declining at 4.5% to 6.5% per day per annum.
Now that tight shale oil has just started to decline it appears that
the peak is now history and the decline has just started.

Read it here:

http://tinyurl.com/gtsbanx

Quote:"Why would refiners continue to import large--and increasing--
volumes of actual crude oil, if they didn’t have to--even as we saw a
huge build in [U.S.] C+C [crude oil plus condensate] inventories?"

Bazz, I think you underestimate the oil refineries: they can turn one type of hydrocarbon into another. Although of course doing so has its costs.

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Yuyutsu,

Debt itself is neither right nor wrong. But it enables things to be done that could not otherwise be done, benefitting businesses and individuals alike. If debt is not available, those who are already rich can exert much more power over everyone else.

Debt enables businesses to invest in equipment that makes them more productive (and cuts their cost of production). And the lower the interest rate is, the lower the ultimate cost of production is, which benefits customers, workers and shareholders.

Debt enables people to afford to buy their own homes, rather than having to continue with the false economy of renting.

Without access to debt, people have to settle for an unnecessarily low standard of living for much of their lives.

As for that metaphorical building, of course it should be there in the first place. Without it there'd be far less opportunity to make money, and millions of Australians would be much worse off.

It is good that the RBA encourages people to make themselves more productive rather than to try to get rich lending money.

I hope you are aware that because technology is improving, increasing the money supply is essential just to avoid deflation. Although most of the money supply increase is done privately and does not directly involve the RBA.

Taxation is not a crime. Failure to guarantee money won't decline in value is not a crime.

Complaining is often about the present. Self esteem is greatly overrated.

There's nothing immoral about benefitting from circumstance, and no need to feel guilty about it even if those circumstances disadvantage others. What's important is to help those who need help.

Scientists haven't observed any law of karma.

That is right Aiden they do use it to thin out heavy crudes but there
is a limited amount they can use and it does not produce the grades of fuels that they want.
The upshot is it cannot be counted as crude oil.
The figures that have been quoted for production over the last few years are incorrect.

Bazz, although it can be mixed with heavy crude to thin the crude, that's not what I'm referring to. I'm referring to catalysed chemical reactions that occur in most large oil refineries, enabling them to vary their output according to requirements.

Going back to 1996: low interest rates; cheap crude oil, 1970s came the OPEC oil shock, became the excuse at the time for run away (stagnant growth) inflation.
Present day low crude oil futures based on US reserves are merely setting up future excuses for run away inflation and stagnant retirement saving based on declining share markets and rising bond yields, destroying current bond holders asset valuations.

Retirement savings are little more than delaying money from being spent until a period of stealing and or destroying the value of money with inflation.

By increasing GST, buying labour costs by increased GST percentage causing higher unemployment, to pay for higher unemployment; Medicare; pensions, spoken about now.