THE MORNING SHOW
Steve St. Angelo
The Numbers for Oil, Energy and Sustainability No Longer Work; Physical Gold and Silver Is the Best Investment
Independent researcher Steve St. Angelo (SRSrocco) started to invest in precious metals in 2002. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy.
Steve considers studying the impacts of EROI one of the most important aspects of his energy research. For the past several years, he has written scholarly articles in some of the top precious metals and financial websites.
You can find many of Steve’s articles on noteworthy sites, such as GoldSeek-SilverSeek, Market Oracle, Financial Sense, GoldSilver.com, SilverDoctors, TFMetals Report, Outsiderclub, SGTreport, BrotherJohnF, Hartgeld, Der-klare-blick, PeakProsperity, SilverStrategies, DollarCollapse, FurtureMoneyTrends, Sharpspixley, FinancialSurvivalNetwork, Pmbull, Deviantinvestor, PmBug, Wealthwire, and ZeroHedge.
-EROI, energy return on investment, is the ratio of how many calories of energy are gained for calories burned. In earlier, more prosperous days, such as after WWII, we had very high EROI. In 1930, for every barrel of oil burned, we gained 100 barrels. Today, shale oil yield is 5 to 1. Our society needs 20 to 1 EROI to be sustainable, 30 to 1 to be prosperous. In US, we added debt to system to offset falling energy return, and debt has increased exponentially. Causing negative interest rates because debt is unsustainable.
-As oil prices fall, it affects EROI negatively. The big 3 oil companies, ConocoPhillips, Chevron, Exxon are losing money. Their debt has exploded and they had to borrow money to pay dividends.
-Healthcare, education – these prices are rising because our low EROI can’t support them. You need energy to not cause inflation from debt.
-Saudi Arabia is putting water injection wells around oil reservoirs, which pushes oil up. They’re drilling shallower wells, US is digging deeper wells. Neither system is sustainable.
-In 1929, the debt for each American was $139. Today it’s $60,000. Since 1980, our debt has increased $19.5 trillion, and we don’t have the EROI to support the debt. Without energy, none of the other sectors work. Even green energy (sun, wind) requires energy (oil, gas) to produce it.
-Many environmental issues with shale oil production. Casings will only last 100 years – what then?
-Insurance companies are the bellweather of the economy. But they have invested in shale oil, which will fail because of its poor EROI. Can’t sustain our economy without healthy insurance companies.
-Oil Pearl Harbor predicted by 2020. Only reason oil prices have risen is because of debt. What happens when debt implodes?
-Energy is the driver of the economy, finance is the steering. Best investment is physical gold and silver. Their value is based on the EROI in them.
-Gold takes more energy to mine than silver. Good mining companies are First Majestic, Fortuna, and possibly Heckla Mining.
and so much more!!
steve st. angelo on the stunning affects of energy profits and world finance, september 1, 2016