Oil - the 1000 pound gorilla

Bullionmark's comments

Matt Simmons has been an investment banker for 40 years. He is the founder and chairman of the world's largest energy investment banking company, Simmons & Co. International. In 2005, he published “Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy,” a book that has galvanized the peak oil debate.
I believe him to be the worlds foremost expert on peak oil. When he proclaimed peak oil production would occur in 2005 he was ridiculed. The following chart highlights how accurate he was.



Watching his presentation at the recent APRO conference is almost alarming. The financial crisis and the decline in oil prices has governments, investors and consumers in a false sense if security. If Matts position is accurate the next crisis will be of a magnitude far greater than any we have seen in history, it will impact everyone, will happen almost overnight and no amount of money printing will solve it. This is the 1000 pound gorilla in the room that no one has noticed. It is another compelling reason why we are headed for hyperinflation and gold & silver will be the go to assets.