December 10, 2013
There is indeed an energy boom. Energy is vital factor in the intelligence age where every server and infrastructure is tied to complex power sources. The interesting fact from a systems, process and financial nexuses is that in every bust or burst is preceded by boom or bubble. Momentum cannot be sustained overtime. This is not a speculation but born out of science and physics. The news reported daily that ““Energy Boom, Export Record” Thrust US Economy Uneasily Forward” is a record of the hay day.
Their is agreement on the energy boom, aided by natural gas growth. My Desert posts, “If it weren’t for the ever-expanding energy boom and continued record exports, bloated with oil derivatives and even foreign sales of domestically produced West Texas Intermediate crude, the current U.S. economy would be poking along at a meager growth level below the 2.6% quarter, which will likely be the result of the U.S. gross domestic product growth result for all of 2013.”
Another aspect of the energy boom or bust scenario is “Adding to the confusion is the price of domestically-produced WTI domestic crude, whose demand was expected to drop into the mid-80′s price range during the winter season, when driving is normally expected to reach its low point. Instead, the demand for this West Texas Intermediate has boomed back to mid-summer levels, reaching close to the $100 per barrel figure, as America’s refineries are scrambling to purchase what had been relatively cheap, while seeking to lessen the “overload” created by unanticipated shale expansion; and storage shortages at Cushing, Oklahoma, the central U.S. inventories, while selling both crude oil derivatives at or near the universal Brent Crude prices, to global retail end-users, at or near a $10 per barrel premium over the West Texas Intermediate.”
The glut of stored fuel is creating a surplus without an export vehicle. The U.S. is highly driven by importation and despite there global economy other nations are leveraging energy exchange more gracefully than the U.S. Currently, the U.S. in overdrive with natural gas that has not translated across platforms and sectors to reduce the costs or optimize power for its users.
The infrastructure graded at D+ is need of development to accompany the energy boom. With any boom their is the inevitable burst. This burst will effect other sectors that are slow or have minimal growth.