The long term cost of lock downs

[Anonymous]

https://i0.wp.com/politicallyincorrecthumor.com/wp-content/uploads/2020/03/so-is-there-tax-we-can-pay-to-end-coronavirus-or-does-that-only-work-for-climate-change.jpg?resize=520%2C338&ssl=1">

This should be shared elsewhere.

[Anonymous]

B.C.'s COVID-19 curbs slow industrial projects



Restrictions imposed by B.C. to fight the spread of COVID-19 infections after the holiday break have disrupted work at construction sites of a Rio Tinto hydropower project and BC Hydro's Site C dam.



A total of five major industrial projects in remote northwestern Canada have been affected as the provincial government last week ordered them to stagger the return of their workers after the Christmas holiday break. BC Hydro's Site C dam, Rio Tinto's Kemano T2 hydropower project, the Trans Mountain pipeline expansion, TC Energy's Coastal GasLink pipeline and the Royal Dutch Shell-led LNG Canada project are named in the order. The companies did not say how the slow return of workers would impact ultimate completion dates for their projects. Across the five projects the number of workers will ramp up from a baseline of 1,460 to 4,080 by mid- February. B. C. health officer Dr. Bonnie Henry said a rapid return to full operating capacity after Christmas would likely "fuel and accelerate" the spread of COVID-19.



"While these changes will have a further impact on our overall project schedule and cost, we understand the rationale for the order," said David Conway, spokesman for the Site C project, which is already over budget.

[Anonymous]

B.C.'s COVID-19 curbs slow industrial projects



Restrictions imposed by B.C. to fight the spread of COVID-19 infections after the holiday break have disrupted work at construction sites of a Rio Tinto hydropower project and BC Hydro's Site C dam.



A total of five major industrial projects in remote northwestern Canada have been affected as the provincial government last week ordered them to stagger the return of their workers after the Christmas holiday break. BC Hydro's Site C dam, Rio Tinto's Kemano T2 hydropower project, the Trans Mountain pipeline expansion, TC Energy's Coastal GasLink pipeline and the Royal Dutch Shell-led LNG Canada project are named in the order. The companies did not say how the slow return of workers would impact ultimate completion dates for their projects. Across the five projects the number of workers will ramp up from a baseline of 1,460 to 4,080 by mid- February. B. C. health officer Dr. Bonnie Henry said a rapid return to full operating capacity after Christmas would likely "fuel and accelerate" the spread of COVID-19.



"While these changes will have a further impact on our overall project schedule and cost, we understand the rationale for the order," said David Conway, spokesman for the Site C project, which is already over budget.

I would imagine most of the workers on those projects live in temporary camps, which are not conducive to social distancing.

[Anonymous]

Some interesting article about petroleum debt and what happens next.



One Little Problem With The "All-Electric" Auto Fleet: What Do We Do With All The "Waste" Gasoline?

https://www.zerohedge.com/technology/one-little-problem-all-electric-auto-fleet-what-do-we-do-all-waste-gasoline?fbclid=IwAR1kmmDjEtaFO07ibvO9iF5USr6Kl7r6SGCeVflaGlIS_n_V7k44L6YTs48">https://www.zerohedge.com/technology/on ... k44L6YTs48">https://www.zerohedge.com/technology/one-little-problem-all-electric-auto-fleet-what-do-we-do-all-waste-gasoline?fbclid=IwAR1kmmDjEtaFO07ibvO9iF5USr6Kl7r6SGCeVflaGlIS_n_V7k44L6YTs48



The answer is a barrel of oil produces a variety of products. While there is some "wiggle room" to produce more diesel and less gasoline, etc., it isn't possible to turn a barrel of oil into only one product.



Those demanding an all-electric auto-truck fleet as a "green" alternative will re-create the dilemma of what to do with the "waste" gasoline. The world will still want fuel for all those container ships bringing all the goodies of a consumerist society, all those cruise ships visiting ports of call, jet fuel for all those exotic vacations enabled by 550 mile-per-hour aircraft, and oil-based lubricants, plastics and petro-chemicals, and so oil will still be pumped and refined, and almost half of it will be gasoline.

https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/refinery2_0.jpg?itok=gD37YcWY">



Let's start with the most basic dynamics in the cost of producing oil, refining it and selling the products at a profit.



1. As a general rule, a barrel of oil (42 gallons, 196 liters) yields a range of heavier and lighter products.



The price the producers can charge for each product--gasoline, diesel fuel, heating oil, jet fuel, propane, etc.-- depends on demand for each product.



If the price for one product falls drastically, the oil producer can't increase the price of some other product to compensate for the loss of income unless demand for the other products will support higher prices.



Consider the huge decline in demand for jet fuel as a result of global air travel dropping in the pandemic. Oil producers can't just raise the price of gasoline to compensate for the drop in the price of jet fuel.



If gasoline demand continues declining (due to fewer commutes, etc.) then producers can't charge more for diesel to make up the drop in the price of gasoline.



In other words, there has to be strong demand for all the products in a barrel of oil for producers to get enough money to extract, refine and transport the products globally.



Unlike the old days when producers could afford to throw away some petroleum products because their costs of extraction and refining were so low, now producers need more than $45/barrel just to break even.

https://zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/styles/inline_image_mobile/public/inline-images/oil-barrel1.png?itok=fvn6mju1">



This is what I'm calling Oil Paradox #1: if demand for any of the primary products is weak, producers can't afford to continue extracting and refining oil, even if there is strong demand for some products.



2. Transportation is the primary use of oil: 68% of all petroleum products are consumed by transport, 26% by industrial and 6% residential/commercial. (These are U.S. statistics, but the global demand is roughly the same.)



If demand for gasoline, diesel and jet fuel remains weak, the value of each barrel of oil will remain below break-even, even if the industrial need for some products (lubricants, etc.) is strong because these industrial products are essential to the world's industrial economy.



3. Much of the consumption of the past 20 years was funded by debt, which is now $277 trillion globally and accelerating. Humanity has borrowed and spent trillions on consumption, and what remains is the interest due on the debt.



This interest constrains future borrowing. The "solution" to interest is inflation, which devalues the interest due. But it also devalues the purchasing power of the currencies being inflated, and so everyone's money buys fewer goods and services.



This is the Debt-Inflation Paradox: the more interest you owe, the greater your need to inflate away the burden of interest. But inflation destroys the purchasing power of money, impoverishing everyone who needs the money to live.



There is no way out of this paradox: either the global economy defaults on its debts, destroying trillions in phantom wealth, or its currencies lose value, impoverishing everyone.



Since so much consumption is funded by debt, any reduction in borrowing, no matter how modest, will destroy demand for petroleum, triggering the Oil Paradox (producers can't charge enough to justify pumping and refining oil).



4. The pandemic has accelerated consumption trends that reduce demand for fuels. Remote work is here to stay, regardless of what you may read. Corporations can no longer afford to staff centralized offices in costly cities. Making everyone commute to offices is no longer financially viable.



Corporate travel is also no longer financially viable. As profit margins fall, the luxury of jetting to physical meetings is no longer justifiable except for senior management-- a few dozen people, not hundreds or thousands.



Tourism thrived in an economy of easy, low-cost credit and secure incomes. Lenders can no longer afford to lend to those with poor credit--notice how credit card limits have been drastically reduced--and incomes are no longer secure.



If the pandemic were the only issue, it would be possible to see a return to 2019-level consumption. But unsustainable debt loads will only get more unsustainable, so much of the consumption that was funded by debt will go away and not come back: the interest on all the existing debt remains to be paid, one way or another.



This decline in consumption has lowered the price of oil far below break-even for most producers. As the article below explains, there are two break-even prices for petroleum: one to get it out of the ground, refine it and deliver it to market, and the second for the social costs the oil pays for.



This is the famous Oil Curse: nations with oil reserves end up depending on selling oil for virtually all their revenues because it doesn't make sense to invest in less reliable, less profitable sectors.



As a result, Saudi Arabia can pump the oil for $45/barrel, but it needs a price of $85/barrel to pay all the social welfare costs it has promised its people.

[Anonymous]

Things government should never be engaged in:

Disarming you.

Stopping you from playing sports, telling you who can and cannot visit your home and telling you where you can and cannot travel.

Bankrupting you.

Boosting profits of major corporations by destroying your small business.

Guaranteeing tax slavery through crushing debt.

Things government is currently doing:

Disarming you.

Stopping you from playing sports, telling you who can and cannot visit your home and telling you where you can and cannot travel.

Bankrupting you.

Boosting profits of major corporations by destroying your small business.

Guaranteeing tax slavery through crushing debt.

[Frood]

https://www.bitchute.com/video/mAiGLiQLq4UB/">https://www.bitchute.com/video/mAiGLiQLq4UB/ via bitslide

[Anonymous]

Things government should never be engaged in:

Disarming you.

Stopping you from playing sports, telling you who can and cannot visit your home and telling you where you can and cannot travel.

Bankrupting you.

Boosting profits of major corporations by destroying your small business.

Guaranteeing tax slavery through crushing debt.

Things government is currently doing:

Disarming you.

Stopping you from playing sports, telling you who can and cannot visit your home and telling you where you can and cannot travel.

Bankrupting you.

Boosting profits of major corporations by destroying your small business.

Guaranteeing tax slavery through crushing debt.

I know globalist governments want total control over us, but even I never thought they would go this far.

[Anonymous]

https://www.bitchute.com/video/mAiGLiQLq4UB/">https://www.bitchute.com/video/mAiGLiQLq4UB/ via bitslide

What was that about?

[Frood]

They thought the family had visitors in the home.

[Anonymous]

They thought the family had visitors in the home.

Visitors or assault rifles.

[Frood]

They thought the family had visitors in the home.

Visitors or assault rifles.

No....it was covid related. The cops didn't like being told to get the hell out of their house.

[Anonymous]

They thought the family had visitors in the home.

Visitors or assault rifles.

No....it was covid related. The cops didn't like being told to get the hell out of their house.

I think the Seoul brother was being sarcastic.

[Anonymous]

https://scontent.fyxd1-1.fna.fbcdn.net/v/t1.0-9/135538541_10102053636662822_1691273132915922608_n.jpg?_nc_cat=102&ccb=2&_nc_sid=8bfeb9&_nc_ohc=PZe3lxdgumoAX9g3cz8&_nc_ht=scontent.fyxd1-1.fna&oh=d16d1b7059b08def730203f7f5bb3cb2&oe=601F32E7">

[Anonymous]

Once high-risk persons are vaccinated there is no justification for the harmful lockdowns that low-risk persons have been enduring for too many months..



Many experts already have serious doubts that doing things like closing gyms is actually having any benefit at all. No cost-benefit analysis of lockdowns has actually been done by governments..



But even those who support these closures must concede that once the demographic who are tragically dying of COVID-19 are vaccinated, there really isn't a reason to keep these closures in place any longer..



Vaccinate high-risk persons pronto and then lift the damaging restrictions on Canadians' lives.

[Anonymous]

Once high-risk persons are vaccinated there is no justification for the harmful lockdowns that low-risk persons have been enduring for too many months..



Many experts already have serious doubts that doing things like closing gyms is actually having any benefit at all. No cost-benefit analysis of lockdowns has actually been done by governments..



But even those who support these closures must concede that once the demographic who are tragically dying of COVID-19 are vaccinated, there really isn't a reason to keep these closures in place any longer..



Vaccinate high-risk persons pronto and then lift the damaging restrictions on Canadians' lives.