Steve St. Angelo: The World is Heading for an Energy Cliff
Tom welcomes back Steve St. Angelo of the SRSrocco Report. Steve discusses how energy is the main driver of the economy and we are now entering an energy crisis. This crisis will affect everything in the economy.
Steve explains how energy issues have historically impacted civilization. When a peak is reached the system becomes increasingly unstable. The system isn’t designed to run at a high level and we are in a declining energy environment. It isn’t easy to fix the energy problems because everything depends on fossil fuels which are becoming increasingly scarce. Many countries are considering returning to coal because of the lack of alternatives.
Green energy is not providing sufficient energy than was expected when it was designed. If the wind stops blowing or the sun stops shining then there are issues, particularly in winter. At best we can only store a fraction of green energy in batteries. We simply don’t have enough metals for massive batteries. It takes a lot of resources to create and maintain wind energy systems. Most of these renewables energy systems have finite lives. Steve argues that most of these green solutions are only exacerbating the problems.
We’re approaching the point of diminishing energy returns where every unit of energy costs a unit of energy to produce. Cheap and easy to obtain oil is becoming increasingly rare. We’re seeing massive amounts of debt being created in an attempt to address these issues.
It always comes down to energy and Steve argues that it was a key factor even in Rome’s collapse.
Talking Points From This Episode
- The Energy Crisis
- Green Energy, Metals, and Fossil Fuels
- EROI and diminishing returns.
- Cause of Rome’s Collapse
Time Stamp References:
0:00 – Introduction
0:38 – Coming Energy Cliff
2:58 – EROI, Gas, & Coal
5:47 – Coal & China Brownouts
7:47 – Green Energy Concerns
14:38 – Impact on Markets
17:22 – E.R.O.I
19:36 – Shale Oil & Debt
26:06 – Offlined Production
27:06 – Energy Inventories
31:18 – Gold, Bonds, & Input Costs
33:39 – Crypto & Complexity
39:08 – Energy & The Elite
40:54 – LNG & Extreme Costs
44:09 – Solutions?
48:35 – U.S. Oil & WWII
50:40 – The Fall of Rome
52:36 – Technology Problems
56:05 – Wrap Up
Energy Cliff Video: https://www.youtube.com/watch?v=wwDQ5iorYxc&t
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, most 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 on 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.