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If The Oil Plunge Continues, "Now May Be A Time To Panic" For US Shale Companies
Over the past 5 years, the shale industry, fabricated or real reserves notwithstanding, has been a significant boon to the US economy for four main reasons: it has been the target of billions in fixed investment and CapEx spending, it has resulted in tens of thousands of high-paying jobs, its output has been a major tailwind for the US trade deficit, and has generally been a significant contributor to GDP (not to mention various Buffett-controlled or otherwise railway corporations). And perhaps, most importantly, it has become a huge buffer to the price of global oil, as the cost curve of US shale is horizontal, with a massive 10,000 kbls/day available within pennies of $85/bl.
Goldman's explanation:
We believe that the vast reserves that have been opened for development through shale oil in the US have flattened the cost curve meaningfully, at around a US$85/bl Brent oil price. We estimate shale reserves from the top three fields in the US onshore (the Permian, Bakken and Eagle Ford) at around 91bn boe, which to put it in context, is equivalent to roughly one third of Saudi Arabia’s current stated reserves (ZH: this number may be vastly overstated). Most of this resource has become available in the past five years, with few barriers to exploiting the reserves. Production in the US as a result is growing strongly, by more than 1mbpd currently, and we expect this pace of growth to continue over the coming three years as capital continues to be drawn in to these developments. The consequence is that costs of production and E&P capex/bl should stabilise as the marginal cost of production remains stable. We believe that shale oil has become effectively the marginal source of supply, providing the bulk of non- OPEC production growth. This is also the key driver of our oil price view: we continue to expect Brent oil to stay at c.US$100/bl for the coming few years.
For once, Goldman is spot on (even if their Brent price target may be a bit off): with shale oil profitable only above its virtually horizontal cost curve, it means that a whopping 11,000 kbls/day are available as long as Brent is above $85, a clear "red line" for all OPEC producers.
The red line is conveniently shown on the chart below:
Furthermore, in the following chart, it is clear how lower rates of Fed-sponsored cheap-funding have enabled more and more mal-invested wells to drill chasing 'only-increasing' shale oil... if rates rise (high-yield credit spreads broke 400bps today - the highest in 13 months) then the breakevens become even more expensive and that cost curve even more compromising to the marginal producer.
However, should the price drop below $85, and very bad things start to happen, not the least of which is what we warned about in May that "Shale Boom Goes Bust As Costs Soar." That was when Brent was $110. It is now at $85 and sliding lower.
As a further reminder, we noted two days ago that shale is now in a bear market:
But that is nothing compared to the no bid market the (very, very levered) shale companies will find themselves in if and when, for whatever reason, Brent drops below $85 to a price where only Qatar is profitable on the global Brent cost curve.
So while we understand if Saudi Arabia is employing a dumping strategy to punish the Kremlin as per the "deal" with Obama's White House, very soon there will be a very vocal, very insolvent and very domestic shale community demanding answers from the Obama administration, as once again the "costs" meant to punish Russia end up crippling the only truly viable industry under the current presidency.
As a reminder, the last time Obama threatened Russia with "costs", he sent Europe into a triple-dip recession.
It would truly be the crowning achievement of Obama's career if, amazingly, he manages to bankrupt the US shale "miracle" next.
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He said he wanted energy prices to go up.
So what better way to do it than bankrupt everybody.
The guy's doing exactly what he said he was gonna
Clue : Cloward Piven
EROI be damned! We can make it even worse with a little manipulation.
if the reserves aren't actually there, no big loss shutting down wasted effort
if the reserves are there, they'll be there when the price that makes them worth getting out of the ground shows back up again
I fail to see the problem here
The American West is filled with ghost towns that were once mining boom towns in the late 19th century. If the Bakken shale oil deposits become uneconomical to extract through fracking, that should wreck the state of North Dakota. A ghost state. It will be fun to watch North Dakota self destruct as the quick buck drillers leave North Dakota with plenty of Superfund sites.
EPA steps in and ... where's the problem? /sarc
Good luck liquidating a Superfund site or finding investors to step in. When EPA rolls in it's game over.
Plans are being worked out to build a $4 Billion plant to convert ethane into polyethylene in North Dakota. It will only create about 500 jobs. I'm originally from Bismarck and they are building housing units like there's no tomorrow. I doubt it will become a ghost state due to all of the agriculture. However, if the price of crude drops much more and stays low, I believe real estate prices there will take a major hit. People will be leaving in droves because it's too cold in the winter for most people to tolerate, especially if you don't have a job and aren't from there.
http://bismarcktribune.com/bakken/billion-petrochemical-plant-planned-in...
I'm making over $7k a month working part time. I kept hearing other people tell me how much money they can make online so I decided to look into it. Well, it was all true and has totally changed my life. This is what I do...
www.job-reports.com
That's disgusting! Poor donkeys
..but there might be a lot of happy countryside residents in the U.K.
Obama should destroy Russia by trying to help it.
lol.
brilliant spungo. obola is in the position of the old soviet regime, and NK presently, that is afraid that if there is a greater interchange with the other side, the populace will observe the difference, and it will not be altogether favourable for hitlary, jeb or obola.
I remember when they said NG needed $8 to break even - it later went below $2.
oddly enough, NG reserves were still developed under those market conditions... funny that
Becuase the associated liquids were paying the freight...
Shale Boom shakalaka.
ITM
When faith fails .
"A fierce price-war between Clathrate and Fracking energy production will drive the Petroleum price down to the $36-$72 per barrel range much sooner than previously estimated ."
https://www.academia.edu/8760492/Ego_and_sense_of_religion
https://www.academia.edu/8770429/Optimal_Markups_for_Sustainable_Growth
http://andreswhy.blogspot.com/2013/04/petroleum-price-and-clathrates.html
If you like your high oil prices, you can keep your high oil prices.
They don't care what it takes to mine an ounce of silver or gold.
Well, if diesel goes back to $2 a gallon, maybe silver can be mined for $10 an ounce again. Or $5 like Methman always said. Wonder what ever happened to him? They will pencil whip gold and silver down if nothing else, until all the miners are standing in line at the food shelf.
During war, there will be some casualties.
Listen Zero's.
Don't get caught on the short side of this bear trap!
Why is this so hard to figure out?
Obama gets two birds with one stone by persuading the Saudis to open the spigots and lower oil prices. He stresses the Russian budget, and destroys the financing for shale companies, thus shutting down fracking, while making his leftist enviro-wackos happy.
Then it's off to tee time.
Win-win-win for the Obamanator.
Obama/Kerry couldn't sell beer at the ball park.
"Obama gets two birds with one stone by persuading the Saudis to open the spigots and lower oil prices. He stresses the Russian budget, and destroys the financing for shale companies, thus shutting down fracking, while making his leftist enviro-wackos happy. Then it's off to tee time. Win-win-win for the Obamanator."
He also destroys the one segment of the economy that has been producing well paying jobs. Direct employment in the oil and gas industry rose 40% from 2007 through 2013, as compared to a decline of about 3% in the overall U.S. economy.
http://www.forbes.com/sites/davidblackmon/2014/02/20/oil-gas-boom-2014-j...
Moar people to cling to the government tit then! Thats the way progressives like Obama think. The moar people that are dependent on them, the moar votes they get!
I'm not saying I agree with what he's doing.
I think at this point, the "system" has been fucked with so much, and pulled and manipulated in so many ways, that I think it's close to going totally haywire.
The only thing needed is a catalyst, like Ebola, or some stray significant mass casualty, or the fall of half of Baghdad, for everything to either freeze up (liquidity, etc) or go totally ballistic (think knee jerk military reactions by non-US actors).
And then, watch the fireworks fly. With some Ebola icing on the cake thrown in. Better get you and yours ready, it's gonna be a doozy (totally off the cuff remark, I don't know any specifics and do not have inside knowledge of anything. Just my intuition of what is going on).
Oil could not even rise on WW3 and total carnage in the ME. That was a pretty good tell on the future.
Unless they are plunging the price on purpose to cushion an out of left field shock...
The Israelis have been very quiet...
Well, if 4 or 5 billion people die in a few months because of WW3, peak oil will get pushed out a long way into the future won't it. Maybe thats why its dropping like a rock.
People have to band together to stop Goldman Sachs from digging up the earth, creating earthquakes and poisoning the water, all in a Koyaanisqatsi fasion just to make a buck with FRAUD. They are killing people by way of a crime.
It's easy. Install solar panels and buy an electric vehicle.
so us your math on that....
I said this in some posts earlier. What about Canadian Tar Sands. Fuck, Canada staked the near future of it's western provinces on the jobs and revenues that Tar Sands would bring in for the next 50 years. These kind of oil prices will nuke the Tar Sands Mines and Refiners.
well, JB, fort mcmurray was going to take a hit, if it's true ebola likes cold temps, a lot of the workers are imports from the african coast. i agree it's not great news for the oil sands or the small companies, they have been hit several times over the last few decades by 'govt', the same regan hit to take out russia, and then the income trusts...the oil will stay where it is until it is needed. and unless we come up with something other than oil and lng the play will return. i wish them luck. it's always sad to see a stupid law wipe out a company or an entire sector and a couple provinces and a state or two.
There goes their real estate market and $600,000 for piece of crap $50,000 farm house up there.
Oil sands is higher expense energy, but way longer production that frack quick fade.
is it possible that the Saudi's are f'ing with the US?
If they are, thank you Saudis! These fracking shitheads come to my beautiful valley, rape the soil and crap on the bitches.
they crap on your bitches? thats rough
Look, I happen to like crappin on bitches. I pay alot of money to do so.
Listen F0ster.
It's an idea I've kicked around quite often, ever since the USSA started depending more on internal production.
Anyhow. Today I tried to pick the scabs that I enjoyed chewing on yesterday but to my surprise I couldn't even get 1 scab. I guess it takes 2 to 3 days for them to regenerate so I can harvest a little me-jerky.
Thanks for killing my appetite. You should offer a service to help people with vivid imaginations lose weight. You could call it 'ScabScarfers'.
If only I could unread what I just read...
Wait! So now lower oil and gasoline prices are a bad thing? And here I thought all along that millions of Americans paying less at the pump was a good thing.
Thanks Tyler for educating me...
Manipulation sucks. Free markets should be free markets.
;-)
Kanye West - Gold Digger ft. Jamie Foxx
http://www.youtube.com/watch?v=6vwNcNOTVzY (3:41)
Yes, it was precisely our intention that your conclusion from this post is that low prices are a bad thing. Well done.
either way, it would be nice if the price discovery was by market forces of greed(supply) and demand(slowing economy), with spoils and despair sorted out by winners and losers(marketplace). how can anybody laud a lower manipulated price?
Exactamundo, you cannot just like the system when it is in your favor
Low prices are always good:
oil
heroin
gold
and pussy(big MAC and creamy shake)
Tylers --
Interesting article would be energy cost deflation ij the emz at different price levels.
Last quarter draghi droned on about how low energy prices are one of the main factors reducing inflation/increasing deflation. That was at 95-100. If we get down to 85 either someone here in ffm will have to play big time with funny numbers or admit outright Japanese style deflation.
Would be an interesting article to get out ahead of the curve -- especially if everything else stays constant (u likely.)
Don't worry, they have this all figured out.......thats what worries me.
If this price curve prediction for XOI.X continues to hold, a good fracking is coming to the balance sheets.
cool charts...yep frack of a shock somehwere
Grazie!
Are we increasing the SPR during this "free market" movement?
Ok partisan assholes either Obama is incompetent or he has the ability to sway the price of oil. It can't be both and I have no confidence in the man's competency.
Presidents have teams of people that make suggestions. Some of them can (I don't want to say be good) actually have an impact and he might actually say yes to such a suggestion. I imagine he frustates the hell out of his military, I am sure they have better ideas than the disorganized crap they pull off. His finance guys have paid for him to be there, I would bet their suggestions have more weight with him. And if they consult, you know, helping with the war effort and all, you know they are going back and shorting oil before the show gets going. Win-win.
He IS incompetent. He hasn't said anything or done anything to impact the price of oil. Happy? Unless he uses a gas powered golf cart, then he probably IS impacting the price of oil...
His golf cart's mileage exceeds the mechanical limits of the odometer.
*
This has little to do with BHO and everything to do with the FED Taper. The biggest oil field malinvestment of all time. At least there won't be much in the way of ghost towns up there, aside from empty Wal-Marts. They can send all the emtpy trailers to the Eccles Building. They're the ones who funded it all.
You miss the obvious: he is competent at being evil and traitorous. He is incompetent at doing anything else.
One can be competent at playing guitar, say, and incompetent at neurosurgery.
It seems like there might be a whole lot MORE oil coming out of the frackers, and that is what is spooking the price......
At $85/bbl there won't be a whole lot of anything coming out of those fracking operations. Or Tar sands.
greed, political power(welfare to underclass), worldwide, is the roots of the s.t. issue imo.
all this bullshit is s.t. and temp til the force of l.t. supply and demand get back in control.
so at 100 the oilers get er done, at 85, its fuck off and suck my dick,ha...
and it's very temporary. remember to take a good look at the amount of money the oil companies have recently invested to get energy and the RETURN on that investment.
I haven't seen Obama bowing to the CEOs of the shale oil companies anytime lately, but I sure did see him bow down to the King of Saudi Arabia.
he learned that position from his predecessors
Panic Pizza :
A thick burnt crust with embedded fingerprints , with a scorching Scoville 2 000 000 topping
http://en.wikipedia.org/wiki/Trinidad_Moruga_Scorpion , with http://deathwishcoffee.com/ to follow .
Then panic .
My brother grows these, reckons the flavour is lovely. I have some pickled, but I'm basically too chicken to try them.
Do you people have any idea what COST is?
All costs are labor costs.
All costs are simply currency/hour which represents a service/hour or goods/hour produced by humans or a fee to lend out machinery and technology
A tomato costs $1. It means that the person producing the tomato wants $1 for it.
The analysis in this post and almost everybody's analysis assumes that costs of production are constant. Huuuuh?
People. It is just dollars/hour/ person.
If prices drop, then costs will drop also, because humans will work for less in order to survive
Not in advanced economies; the labour cost structure is less demand elastic. Thats what social nets and welfare states are all about.
My point is that it is humans who are paid, and humans are flexible based on subsistence needs.
Yet, for 5 years the oil price has gone up against lower wages thanks to FED counterfeiting. This has done real damage to oil demand. People are moving closer to town to avoid buying it. They may have to work for less and they will, necessarily, continue to decrease their demand for energy.
Listen ekm1.
USSA welfare benefits never go down, neither the USSA SSI benefits. Bottom "LINE", why work in America when you can get money for free. Now that's Survival!
You can't eat money.
World has reduced exports to USA due to QE.
You can eat iPads.
labor is eeeeeelastic, like a trail of ants from mexico to the sugar load...
Explain that to the fast food workers picketing for $15 hour minimum wage....
There is less food produced due to QE, hence food prices high.
Fed draining dollars will reduce the price of food.
First the Fed cannot drain Dollars...
The Fed cannot allow deflation as the US Government will not be able to pay the debt and servicing charges unless there is inflation. If the US Government defaults then the Federal Reserve becomes insolvent and both institutions lose their power.
It is a symbiotic relationship. Both the Fed and the US Government act as parasites upon the populace. To get rid of one is to get rid of the other.
Thus price push inflation is certain to raise its ugly head for those commodities which are necessary for survival...Food, Shelter, and Energy. (The reason that Energy prices are temporarly declining is that Saudi Arabia has incresed World supplies. But this is temporary at best.)
Concurrently the price of non essential goods continue to decline as there is less disposable currency which is available to purchase the non essential goods after the consumer purchases the essential goods.
That is the reason that we are realizing these two phenomena at the same time. That is the Empirical Evidence which supports my thesis. And that Empirical Evidence is undeniable.
Next I also disagree with your suggestion that food supplies are diminished due to QE. The supply of food is subject to other limiting stressors (like weather...drought) rather than QE.
But one can have increasing prices in an environment of increasing supply.
So even if the weather is good, the rains fall at the right time, and the harvest is bountiful, prices for food can still rise.
One must consider the differential rates at which supply is being increased.
If the supply of currency increases more rapidly than the supply of food then the price for the food increases.
However if the supply of food increases more rapidly than the supply of currency then food prices will subsequently decline.
I am sorry ekm1. But your post, here, was poorly thought out.
Tall Tom, a guy posted a comment on ZH years ago that succinctly described what you said ... to wit, "That which is needed will cost more. That which is wanted will be valued less".
Just so.
I agree with like 90% of your stuff, but here I believe you are wrong, not becuase theory, but becuase actually I think in this case the money for fracing was lent and they are leveraged, and therefore CAN'T reduce their costs like you normally can in a deflationary environment. YEs, I assume they are hedged, but how far out?
Don't forget that wages are "sticky" on the way down in deflationary environments so their is always some pain there as well.
Government will partially or fully bail out oil extraction industry, inevitably
No they won't. Government is bankers and banker's whores. That's why government was persuaded to bail out the bankers.
The bankers got this oil business under control. They could care less if their "friends" in the oil sector starve if that means it suits the banker's agenda.
Bail out the frackers? With the banker's money? HAHAHAHA not in a million years. Why would the banker waste money to bail out an industry that he can pick up for cents on the Dollar after it has collapsed?
Not bloody likely. They are small operators, relatively speaking. The same thing happened in the oil business collapse 30 years ago. It allowed the big boys to consolidate their power. That's why we have the FED. To pump and dump, to make it easier for the big boys to control everything. They'll go in and buy things for cents on the dollar from bankruptcy. Same story, different decade and different group of 'Gold Rush' suckers.
Oil boom
Oil bust
The promoters keep their mansions
The smallest suppliers, services, naive investors, etc lose
it is always the same, only worse
cos don't learn history of boom/bust in real
This move is Saud's answer to all its potential and actual enemies on the Oil patch :
Iran, Iraq (shia leaning), Russia AND USA (shale plays).
Yes, count USA as part of countries who are now in the longer term Saud's enemies.
The current split between US and Sunni monarchies; with Qatar playing as US's new Sunni proxy horse and Turkey now openly challenging USA to control the Kurd/Kirkuk patch; makes the Saud move an awesome challenge to Pax Americana.
Obama is guilty for having moved away from Saud towards Qatar and Iran; both unacceptabe to Sauds.
Whence their new strategy. Awesome if they can keep this up !
If Palladium is an historical example of what happens when Russian Oligarchs are backed into a corner, expect them to dump crude oil and NG dirt cheap in the forseeable future.
best post in a long time here on zh. makes so much sense, thanks f p
how simple, control via supply. competitors created break evens that can be taken out like stops, ha, love it.
Now THIS comment exemplifies the best of ZH and why I keep coming back, regardless of the Phyllis Schlaflys and Scott Livelys that continue to (dis)grace this site.
Thank you, falak pema.
It's the FED Taper, not Saudi's. That's just propaganda! The exact same blame game was targeted at them in the 70's after Nixon collapsed the dollar. I never could explain that one to my granddad, who voted for the crook, either.
There is an element of tit for tat in the petrodollar construct. Just to summarise :
After all, the Saud/US relationship of "thieves in bed", controlling black gold at the expense of the world, is 50 years old; when Ghawar became the fount of Saudi dominance and the USA hit peak oil production (1965-1970).
However, clearly since Saud now controls both OPEC and Aramco, it has the upper hand in the dystopian fall out of GWB's Crusade legacy which makes US "boots on the ground" a non-starter in this administration's eyes, in the cauldron of ME proxy, asymmetric war zones; now looking like becoming a Thirty Years war zone in MENA.
Turkey vs Iran is the new game on the block, using Kurds as punching ball and rabid Sunnis as the enemy of both West (and Iran !)--they were the friends of USA's Neocon proxy Crusade against Iran during the "Saddam our spear carrier" period-- and became the enemy during the "Saddam our bogeyman" GWB Crusade, when US switched to supporting the Shia element in Iraq.
This started to piss of the Saud Wahhabit clique who "sponsor" the Ben Laden type Sunni extremism under the carpet. This has been going on in the region (Pakistan to Sudan and beyond, the Madrasa culture and Talibanism) since first oil price hike; aka since 1973, when Saud got rich bigtime.
With such a "head up ass" US hegemonical regional strategy what can you expect?
When "thieves fall out" is the scenario currently playing out in today's Oligarchy run world... and its consequences look awesome!
The blame game in the 70s was to pressure them--the Sauds-- to join the petrodollar club, to align with Israel behind the curtain in turning around Saadat's Egypt into becoming friend of US-- to openly be US's ally against the nationalism of Nasser/Syria Baasist alliance-- Dear Henry's bete noire, supporting Black September Arafat and Palestinian resistance in the region.
All that worked out very well ! And the great petrodollar game was on, making City the non regulated "funny money" Eldorado of petrodollar recycling.
The FED is the house of Oligarchs and panders to all who bow to King Greenback. Period.
Not to the people of US but to Mr Moneybags, Arab or whatever, as long as he buys USD !
Maybe it's just the free market at work.
Prices falling as demand softens.
Given Fracking is a giant Ponzi scheme anyway it's just life
This place is hilarious. If oil price were spiking up, it would be Obama's fault. Since they are dropping, that is Obama's fault. I suppose the brain trust here think it is the president's responsibility to ensure that oil trades at a certain price so everyone is happy. No wait, they don't like that either.
I think it is safe to say that if Obame personally defused a nuclear bomb that was about to explode in the US, some dickhead here would be on his case about it.
The left hate fracking, and is shorting the hell out of the stocks.
You're goddamn, motherfucking right. We on the left hate fracking. We value silly things such as drinkable water and uncontaminated soil over cheap oil/gas.
Full disclosure: I own a car, but drive it less than 75 miles/week. I take public transportation to work. At home, I don't use the heater until the inside temperature is at/below 62.
Fuck you assholes who think/do differently. You're the problem. Not us on the hated left.
62*? Pneumonia, here we come!
"Fuck you assholes who think/do differently. You're the problem. Not us on the hated left."
and this is exactly why I hate "left leaning" people. Maybe you forgot the sarcasm tag?
I actualy often agree with what the "left" is saying, but they always ruin their message with insults to anyone who disagree with them (which are the actual people they are trying to convince!).
No. You're wrong on your last part. I'm not trying to convince anybody of anything. I'm not a preacher, and I'm no apostle. I don't sell things, so there's no reason for people to believe that they have to buy anything from me.
OK, so you disagree with the last part of what he said, but you implicitly concur that left-leaning 'progressives' tend to be arrogant, intolerant, smug assholes (as evidenced by your comment, Screw you all who think differently)?
Shale Oil recovery is a myth. Much like the USA itself.
Good. Maybe the earthquakes here will end.
And "global warming", and people being mean to puppies.
They started developing the tar sands in Canada some 50 years ago and it was all shelved again when the economies cratered in the Seventies. Then they went back at it and made massive infrastructure upgrades and improvements.
Same can happen to the shale plays. All depends how deep the rout will be and how soon a real economic recovery can happen and pick up steam.
Can another boom happen? Can it, Dorothy?
There is little doubt that this recent plunging price of crude is a manipulation aimed at "putin the hurt on putin".
ZH posts this plunge would hurt US interests.
What vested interest does ZH have in economic assaults on Russia? Or is ZH simply concerened for US investors?
The balance sheets of most of these companies doing this type of work shows extrmely high debt levels and their balance sheets look like hell.The wells deplete very quickly after a few years and are very expensive to drill and frac.These will be the targets of merciless short selling as the oil price continues to drop.
High debt. A creation of 5 years of FED counterfeiting. They never would have even started in 'free market'.
If shale companies go belly up, Government will graciously intervene and bail them out with our money. Problem solved.
Once Putin is gone (if) subsidies will stop and we will have $200 oil.
Maybe the price will go down and people will start producing less which will cause a shortfall which will cause the price to rise encouraging people to produce more until they produce too much for the demand which will cause the price to fall until there is a shortfall which will cause the price to rise until there is an over supply which will cause the price to fall. Sort of like the climate - it gets hotter, then colder, then hotter, then colder, Cycles.
I'm for .05 a gallon. That should get things moving while the rich show the world they don't just care about themselves for a change. They won't be making anything from the dead or the zombie isis blackwater jew sniper ms13 terrorist ebola hacker rebel nationalist common core dipshit driving down the road in a tank full of dead hookers, babys and crack heroin moon pie best wishes.
I rejoice with every drop in the price of oil. It benefits my pocketbook and hurts Vlad. Does it get any better than that? :-)
Oh yeah, I guess it does. The ruble continues to fall like a rock, today down to 40.90 to the dollar.
It also hurts most American shale producers.
PS a cheap ruble helps Vlad. I'll let you figure that one out.
Vlad apparently doesn't agree with you, Bob. That's why Russia's spending itself silly trying to prop up the ruble.
http://www.marketwatch.com/story/russian-central-bank-props-up-ruble-201...
You're getting an education - for free! :-)
Or is Russia dumping dollars
And you are drinking Kool-Aid?
Onshore Russia is $50
Shale is $65 and up way up in real....
Who hurts more?
What is your obsession with Russia?
Yep In the long run
After 5 years of FED counterfeiting, you rejoice when they throw you crumbs from their table? I hope you were being sarcastic.
If Mark Begich, Nancy Murkowski , and Don Young were really Americans interested in America these worthless pieces of shit would have something to say about the debasement of Alaska's currency which is the barrell of oil.
They say nothing and are proven to be skanky shithead shills for the estabilishment.
edit:Sullivan is also a shill and to be trusted equally with the guillotine....
I bought a fifty pound zucchini once in Alaska.
Saw a pumpkin that weighed over a thousand pounds there too.
Darndest thing.
Sell more chilkoot thunderphuck if you've got a problem with cheap oil.
Come on... the printing press has covered the Shale operations back door. You can do what ever you like when you own the printing press. But the other countries are catching on and are ordering their new 8 color Heidelberg Digital printers. Now, thats the business to be in ...
Boomerangs.
Good. I'm glad. Enough of the shale shit. I hope each and every one of the shale companies go belly up.
Who cares if a bunch of illiterates and their idiot offspring go hungry? Thin the herd, whichever way you can.
The fun thing is, a lot of those people are guaranteed Republicans, or at the very least Reagan Democrats. It would be fun to see them all lining up to receive food stamps and unemployment benefits, if that were still a thing one had to do in order to receive both.
"I'm against government spending. Keep the government out of my pocketbook." Yep. Until you need government to fatten your pocketbook. Like giving shale drilling companies carte blanche over every single aspect of a state's well-being. A la Pennsylvania, the poster child for idiocy in shale drilling.
Dickheads.
Yes appluad the government for bankrupting and industry, putting people out of work then mock them as they are added to the government doal, the coal workers my know a little something about that.
Only a dickhead would wish for hard working people to fail and have them and "their idiot offspring go hungry". With the ant Republican rally then I deduce you must be of the liberal Democrat persuasion. Only subhuman taking pleasure in seeing an industry shut down in order to mock the working folks and their children as they go broke. "It would be fun to see them lining up to receive food stamps and unemployment benefits". Really, one who takes pleasure in anothers misery had their human card revoked years ago.
Good thing you are not prejudiced. You sound like a caring, open minded, liberal thinking humanitarian.
not bad. it's the reason i come to zh.
Boo hoo. You know the ironic part of it all? I work for a law firm that makes its money off of the shale boom.
I still root for the demise of this dear industry. Just because people are making money off of it doesn't mean I have to like it.
But, money means more than human life, I suppose. So...
Interesting charts.
The charts assume USD has constant value.
So if USD collapses then these charts go up with USD going down.
Another thing...if there are more discretionary dollars then the taxes will probably rise to soak up the savings...given the high debts.
Interesting.
well if you are a saudi, that's all that matters.
So here's it gets worse before better for shale producers:
If you know $85 is the red line AND assuming you're not hedging at prompt month, then you'll continue to produce oil. Wait for your competitors to go out of business. Or at least pay off your current cash flow out from the capital equipment. No noticeable decrease in production will take place until the long end of the curve collapses and stays down for a long time.
Might as well throw a hardway bet down on it. You've already got plenty on the line.
CHEAP OIL TO TOPPLE PUTIN.......then back to business as usual...
When Elon Musk comes up with a much cheaper automotive battery - as he seriously intends to - it will substantially cut into oil demand
Goldman Sachs conveniently overlooks the Ponzi finance nature of the $85 breakeven level:
http://winteractionables.com/?p=15462
EBOLA
US: Second health care worker in Texas tests positive
Latest
http://tersee.com/#!q=ebola&t=text
shhh dont tell anyone
let US cos. get all the billions of debt they want
do all the fractoring for shale (which is uneconomical)
become indebted & broke & bankrupt but for what?....
Another QE excuse
Let there be more QE for bankers but now at ZIRP
QE has now become a chronic ailment
Rather QE should be made a fundamental right
(for whom ? not for u & me stupid , its for the fat banker(bankster) )
This is beyond cool.
Obama will be guilty of everything... again.