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"It's A Huge Crisis" - The UK Oil Industry Is "Close To Collapse"

Tyler Durden's picture




 

It seems like only yesterday when back on October 11, we first explained - and previewed - the collapse of oil courtesy of the secret deal between the US and Saudi Arabia. However, it seems like only this morning when we subsequently wrote that "If The Oil Plunge Continues, "Now May Be A Time To Panic" For US Shale Companies." In retrospect, it was, and with the price of crude far below mid-October levels, the pain for both Russia and shale is now quite unbearable (even as Saudi Arabia explained earlier today that the reason for collapsing oil has nothing to do with supply and everything to do with plunging demand, and after seeing this chart we believe it).

All of this was perfectly obvious months ago to anyone who cared. To wit:

... 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.

So with great delight we present the latest blowback from Obama's "brilliant" strategy to cripple Putin: in addition to the default wave about to crush America's own shale industry, America's biggest foreign ally and military partner when it comes to "ideologically pure missions of liberation" - the UK, and specifically its North Sea oil industry which according to the BBC is in a "crisis" and according to Robin Allan, chairman of the independent explorers' association Brindex, the industry was "close to collapse". 


The story is the same as in the shale patch, only in the far colder and stormier North Sea: "Almost no new projects in the North Sea are profitable with oil below $60 a barrel, he claims. 'Everyone is retreating'"

"It's almost impossible to make money at these oil prices", Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. "It's a huge crisis. This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that's painful for our staff, painful for companies and painful for the country."

"It's close to collapse. In terms of new investments - there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. Budgets for 2015 are being cut by everyone."

And to think it was just yesterday that the WSJ telling anyone who believes propaganda that "Christmas has come early for British consumers.

Tumbling oil prices, rising wages and declining borrowing costs are lifting households’ spending power, sending a powerful signal that consumers are set to keep Britain’s economy growing in the New Year.

 

BOE officials in December concluded the decline in the oil price in particular should act as a mini-stimulus for the U.K. and its major trading partners, even as Russia and other energy producers reel from crude’s recent slide. The BOE estimates the oil price has fallen 35% in sterling terms since June.

Which once again shows that when it comes to being utterly clueless about the real world, central bankers truly have no peers. Well, side from their media cheerleaders of course.

But hold on: wasn't only Putin supposed to be getting crushed as a result of the oil collapse? Suddenly the "secret" Saudi agreement isn't looking all that hot.

As for the truly "best" news: the collapse in the oil field will remain hidden from official government data. Mr Allan said many of the job cuts across the industry would not have been publicly announced. Oil workers are often employed as contractors, which are easier for employers to cut.

His remarks echo comments made by the veteran oil man and government adviser Sir Ian Wood, who last week predicted a wave of job losses in the North Sea over the next 18 months.

BOE bullshit aside, this is what is really going to happen:

The US-based oil giant ConocoPhillips is cutting 230 out of 1,650 jobs in the UK. This month it announced a 20% reduction in its worldwide capital expenditure budget, in response to falling oil prices.

 

Other big oil firms are expected to make similar cuts to their drilling and exploration budgets. Research from the investment bank Goldman Sachs predicted that they would need to cut capital expenditure by 30% to restore their profitability at current prices.

 

Service providers to the industry have also been hit. Texas-based oilfield services company Schlumberger cut back its UK-based fleet of geological survey ships in December, taking an $800m loss and cutting an unspecified number of jobs.

 

On Wednesday Aberdeen-based Wood Group announced a pay freeze for staff, and cut rates for its contractors.

 

Apache, one of the North Sea's biggest producers, has followed suit and will impose a 10 percent reduction on its contractors' wages from January 1st.

So what happens to the UK oil and energy industry? "The industry was hoping to see continued high levels of investment, stemming the inevitable decline of production as North Sea's resources are used up. But falling oil prices have put that in doubt."

However, the Department of Energy and Climate Change said: "The recent sharp reductions in oil prices are very challenging for companies active in the North Sea. We have seen very little evidence of new projects being cancelled or deferred in reaction to lower oil prices."

Which means the real pain is only just starting, first in the UK and soon everywhere else.

 

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Thu, 12/18/2014 - 19:39 | 5570594 falak pema
falak pema's picture

Saud is out to get the West for having debased Sunni Islam's hold on region and having hopped sides to Shia ISlam.

That is the game changer from their perspective. Its more important than all else. They, the rulers, are religiously motivated deep down. Trying to reconcile their oil revenues with their ideological hold makes the latter take precedence over the former as the US unilateral and brutal position of "for us or against us" makes convergence impossible. We see that even in Pakistan and in Afghan where the past leaders (Karzai and Musharraf) openly say the US has reneged on past commitments to play their own games not the Common game.

And that explains the ISIS in Syrac. Turkey now plays as alternative Sunni leader in region in case US walks away from Saud. Thats how the cookie could crumble.

THis whole regional shooting match has become a thing that nobody controls; except indirectly China; in that it benefits from Pax Americana's increasing turmoil of not being able to control its legacy of 60 years of ME mayhem. 

Chickens coming home to roost on neo-con legacy.

Fri, 12/19/2014 - 11:25 | 5570791 piratepiet
piratepiet's picture

Saud is out to get the west ? I think you underestimate the Saudis a little bit. They will not be so foolish to take on the West, rather try to divide what remains of the West (as the Americans most likely did in their region). Prince Alwaleed Bin Talal seems to have hinted at that possibility during a recent interview ( probably only the paranoid picked that up ). One way of splitting the West could be an attempt to cosy up to your country, France, as an alternative protector and beneficiary.

Thu, 12/18/2014 - 20:44 | 5570841 WhackoWarner
WhackoWarner's picture

Maybe if everyone got out of the region?

Let them fend for themselves.  Quit supporting Israel. Let them fend for themselves diplomatically.  What happened to that.  Talking?

 

Thu, 12/18/2014 - 21:02 | 5570904 WTFUD
WTFUD's picture

Nein, Da, Nein, however, if the Saud Scum Regina Vagina were abandoned by their MASTERS . USSA (israel ) deh be COOKING OVERNIGHT.

Thu, 12/18/2014 - 21:22 | 5570938 Winston Churchill
Winston Churchill's picture

I went to school with a couple of Saudi princes under aliases.Waste of time trying to keep a secret in an English Public school.Everyone knew who they were in a week.

I assure you they were not religious deep down.

It was purely for show then, probably still is.

Maybe as the approach death they are becoming more religious I suppose.But I doubt it.

They were also pretty smart.

Marx was right about religion, its for the masses, not the rulers.

Thu, 12/18/2014 - 22:10 | 5571077 Savvy
Savvy's picture

Pffft. Religion to them -the rulers- is as much a tool of control and wealth extraction as it is for any religion. It's only the sheep who believe that shit.

Thu, 12/18/2014 - 22:16 | 5571098 Chad_the_short_...
Chad_the_short_seller's picture

Did you smoke homegrown crack or GMO crack before writing that? Saudi is a BILLION times weaker than Russia is and look how murica is smashing Russia. If Saudi pissed off murica, they would snap their finger and Saudi would be on their hands and knees and be their slaves for life if murica said so. Get out of here with that fucking bullshit dude.

Fri, 12/19/2014 - 04:42 | 5571658 Seer
Seer's picture

If the Saudis collapsed their oil production I doubt that the world would merely blink.  The Saudis DO have a "nuclear option."  It's no accident that their rulers have been so heavily protected by the US/West.

"look how murica is smashing Russia"

In a short enough time frame anything can be made to look successful.  I seem to recall the Germans believing just as you do.

Fri, 12/19/2014 - 04:50 | 5571664 Sirius Wonderblast
Sirius Wonderblast's picture

Yup, looked quite good as far as Leningrad. Less good afterwards.

Thu, 12/18/2014 - 19:34 | 5570595 nosoeawe
nosoeawe's picture

does anyone really care about the queen cunt and her inbred gang of snaggle toothed minions? bend that geriatric queen cunt over the desk and give her a royal drubbing. the brits are one rung above single celled amoebas with the IQ to match

Thu, 12/18/2014 - 19:48 | 5570649 Anusocracy
Anusocracy's picture

"pre-limbic, single helix mutoids"

From Hill Street Blues.

Thu, 12/18/2014 - 19:50 | 5570659 quasimodo
quasimodo's picture

Haha! made my day there with that snarky comment. And could not agree more. 

Thu, 12/18/2014 - 21:39 | 5571010 Winston Churchill
Winston Churchill's picture

He just hates corgi's.

Thu, 12/18/2014 - 20:15 | 5570739 Freddie
Freddie's picture

Well America has the most heavily armed citizenry in history and Americans let Congress turn America over to illegals. 

Does not say much about Americans.

Thu, 12/18/2014 - 20:23 | 5570760 will ling
will ling's picture

gotta point. not irreversible.

Fri, 12/19/2014 - 03:09 | 5571590 Chad_the_short_...
Chad_the_short_seller's picture

And let a tiny little group of fucking pussies hijack EVERYTHING in this country and destroy it all and then take from us and send it to that country out in the ME. Uses our military to fight every god damned mother fucking country in the world to strenghten israel while tearing down murica. Hijacked our god damned mother fucking media and have completely mindfucked everyone. Hijacked the college institution and completely brainwash white kids into hating themselves, being anti white liberals and being pro black. While blacks teach hatred of whites. Hijacked the record labels and control every message being sent to the mass. Black gansta rap hating on whitey while whitey hates on himself and god and loves the backy

Thu, 12/18/2014 - 20:16 | 5570741 f16hoser
f16hoser's picture

You owe me one spleen. I'm still laughing. Couldn't have said it better myself. You left out royal pedophilia. ..

Thu, 12/18/2014 - 23:03 | 5571230 Tall Tom
Tall Tom's picture

What?

 

Is US Military pedophilia better than Royal Pedophilia?

 

How is raping children in front of their parents over in Iraq and Afghanistan working out?

 

That is a method of the TORTURE USED...

 

Here is a Soldier admitting to raping a 15 yo girl...

 

https://www.youtube.com/watch?v=O3dvoBhevOQ

 

How about that Child Pornography Scandal in the Pentagon that was covered up because it reached to top levels of US Government?

 

Check out this Yahoo search...

 

https://search.yahoo.com/search;_ylt=AjpojmsX5DxFYxdOzfS3FkybvZx4?p=Pentagon+child+pornography&toggle=1&cop=mss&ei=UTF-8&fr=yfp-t-901&fp=1

 

There are pages upon pages of links.

 

And then you have the audacity to claim that the British are somehow inferior? Now that is the epitome of HYPOCRISY.

 

No. The United States is just as fucked up as the Royalty in Great Britain with our Faggot Commander in Chief and his band of Homosexuals in the Whore House in Washington.

 

 

Thu, 12/18/2014 - 20:21 | 5570752 lotsoffun
lotsoffun's picture

re:  the british royals.  i would tend to agree with you.  inbreeding is a fact, the hapsburgs (sax-coburg also) 'invented' hemophilia for example. 

so - think about this.

NOBODY has done a fcking thing about it, and they all go along with the status quo.  and will continue to.

so who is the dummy/weakling here?

 

Fri, 12/19/2014 - 04:53 | 5571667 Sirius Wonderblast
Sirius Wonderblast's picture

I'm surprised your planet-sized brain and thorough education did not equip you to start sentences with capital letters, or to express yourself without recourse to deepest profanity. Please do not confuse Britons with the Krauts in Buck House.

Thu, 12/18/2014 - 19:35 | 5570597 Quinvarius
Quinvarius's picture

If you want to see the future of drillers in an era of price intervention, look no further than gold miners.  That is the future.  

Thu, 12/18/2014 - 19:37 | 5570614 Al Huxley
Al Huxley's picture

Word on the street is the miners have decoupled from the price of gold and are the next big thing to buy.  They've suddenly gone from being the short-bus kids to the coolest thing in town.

Fri, 12/19/2014 - 04:48 | 5571663 Seer
Seer's picture

This is all the big sloshing that I figured would come in to play as the game started to enter terminal phase.  Eventually the big money won't be able to rebound for another slosh (in an attempt to eek out anything over a loss on "investment").

The return on consolidation won't be what it was in the past, as market expansion will no longer be there.

Thu, 12/18/2014 - 19:35 | 5570599 wmbz
wmbz's picture

If investment bankers are in jeopardy of any type of loss due to oil price drop, then you can bet that ain't gonna happen. Loss will be passed on to the lowly taxpayers.

TBTF! Forever!

Thu, 12/18/2014 - 19:36 | 5570600 Theta_Burn
Theta_Burn's picture

Enjoy it folks, this time next yr. we will be paying $5 a gallon..

Thu, 12/18/2014 - 19:40 | 5570625 Seer
Seer's picture

That's what I've been thinking.  It's why I finally retired my 24-year-old econo-car for something that gets even better fuel mileage.

Thu, 12/18/2014 - 20:42 | 5570829 franzpick
franzpick's picture

Yes, a year from now gas will be $5/gal., and the good news is - you won't have to pay it. There won't be any.

Fri, 12/19/2014 - 05:10 | 5571673 Seer
Seer's picture

That seems contradictory, that something can be affordable but not available.  That is, how can the market around me have something priced yet unavailable?  Again, $5/gal is still cheap (when one really understands the value- I was burning $4+/gal diesel in my tractor and getting a LOT of work done- even at $10/gal it's still a bargain for the amount of work that can be done.

Thu, 12/18/2014 - 20:21 | 5570755 f16hoser
f16hoser's picture

Agreed. Maybe more..m

Thu, 12/18/2014 - 19:37 | 5570605 kowalli
kowalli's picture

no christmas presents?

Fri, 12/19/2014 - 01:51 | 5571529 Never One Roach
Never One Roach's picture

Those layed off workers in UK [and all the O&G layed off people here in the USA] may have to do something drastic this Christmas ... like spend time with their family or even worse ... read a book !

Thu, 12/18/2014 - 19:38 | 5570617 Jupiter888
Jupiter888's picture

"the Department of Energy and Climate Change said:"

The answer to all your questions can be found in the name.

Thu, 12/18/2014 - 19:40 | 5570618 delivered
delivered's picture

The write-offs and hits to the balance sheets which will flow through the income statement are just beginning. Long-term or fixed asset values as stated on the balance sheet are either stated at "cost" or must be written down to FMV if the discounted cash flows do not support the original cost. It's one thing to justify an asset value with a modest 10 to 20% price decrease. It's completely another when the price drops 50% like it recently did. Even the most conservative operators and lenders are most likely not prepared for a long-term price of oil in the $50 range. 

What's even more worrisome is the fact that its not just small, poorly managed/financed energy companies are making deep cuts (which they have to for survival). What you're seeing is that very large, well managed, and long-time industry leaders are making cuts. These parties have witnessed challenging times before and would not be jumping to these types of significant decisions if they didn't believe the 3 to 5 year outlook for oil prices is fairly poor. While cutting the "fat" is relatively easy, there's going to be some deep cuts with long-term industry/company knowledge being let go. Industry leaders do not take this decision lightly as it can be very difficult to replace a brain drain.

So this season's earning's parade is going to be very interesting. We'll see which auditors are up to the task and fairly value assets and which auditors buckle from the weight of their customer and "convince" them that the asset values are reasonable (and no significant write-downs are required). I lived through this scenario as an auditor for C&L in Denver from 1985 through 1987 (major oil price bust). While the effects of the decrease in oil price weren't realized immediately, after two years the term "See through building" was coined to highlight how many energy companies and all of the associated companies dependent on the oil industry had folded which of course brought along some great deals on commercial office space (plenty available).

Talk about the tip of the iceberg or peeling back the onion syndroms. We haven't seen anything yet.

Thu, 12/18/2014 - 19:42 | 5570633 Seer
Seer's picture

Economies of scale in reverse.  As impressive as it was churning up it'll be equally "impressive" (forceful) going in reverse.  Gravity sucks...

Thu, 12/18/2014 - 20:16 | 5570736 Dapper Dan
Dapper Dan's picture

Make of this what you will, but it looks like they made some incredible profit for many years.

 

In real dollars, the 77 percent increase in oil operating costs from 1976 to 2008 and the 22 percent increase in equipping cost (in real 1976 dollars) are dwarfed by the 274 percent increase in the oil price from 1976 to 2008

The differences are only slightly less dramatic after the 46 percent drop in oil prices in 2009.  The 1976 to 2009 change in the real dollar price of oil was 103 percent compared to an equipping cost change of 7 percent (in real 1976 dollars), and an operating cost change of 54 percent. 

http://www.eia.gov/pub/oil_gas/natural_gas/data_publications/cost_indices_equipment_production/current/coststudy.html

Thu, 12/18/2014 - 20:46 | 5570844 adr
adr's picture

Exactly. Thanks to the fucking fed the entire market was distorted to an unrealistic level. The actual price of oil doesn't matter, it's the future revenue from the price of oil that has already been spent that is the problem.

Oil was profitable to drill offshore when crude was trading at $20, it will be profitable to drill at $50. 

I never believe anything any conpany puts out because in my experience every single word is a lie. I'll take the words of my Exxon engineer friend while having a beer than any corporate statement.

Fri, 12/19/2014 - 05:17 | 5571674 Seer
Seer's picture

But there were periods in which they got their butts kicked.  Keep in mind that large corporations wish to stay around and if they don't maximize their profits they'll get eaten up by the competition.  Also keep in mind that it's all a limited resource and that eventually the, um, well runs dry.

Dick Cheney made it very clear how important the oil industry is when he said that: "The American way of life isn't negotiable."  It's ALL is predicated on oil being affordable (and in sufficient enough supply).

I'm much more comfortable with the notion that the oil industry is or is able to make huge profits over say the financial sector doing so.

Thu, 12/18/2014 - 19:51 | 5570665 cowdiddly
cowdiddly's picture

^ this

Thu, 12/18/2014 - 19:51 | 5570628 Dr. Engali
Dr. Engali's picture

" It's almost impossible to make money with oil at these prices"

And their was great rejoicing by the communists in the White House.

Thu, 12/18/2014 - 19:59 | 5570688 lakecity55
lakecity55's picture

"Now that the Capitalists have lost money on Oil, we will step in, Comrades, and Nationalize their operations!"

Thu, 12/18/2014 - 19:46 | 5570630 TheRideNeverEnds
TheRideNeverEnds's picture

.

Thu, 12/18/2014 - 19:45 | 5570638 TheRideNeverEnds
TheRideNeverEnds's picture

Fortunately for us none of that matters cause central banks are not only in control but the only thing that matters; they in combination with the financial services sector account for not only the entire global economy but also a large multiple of it.

Thu, 12/18/2014 - 19:45 | 5570643 Jethro
Jethro's picture

Merry Christmas!  Obama put a lump of coal in your stocking.  The EPA will be by shortly to fine you for the coal, and then the IRS will audit you for undocumented income.

Thu, 12/18/2014 - 20:51 | 5570857 franzpick
franzpick's picture

Good. Send the agents to my place, where they're going to get their lump of coal back, in a place like where it came from, where the sun doesn't shine.

Thu, 12/18/2014 - 19:47 | 5570648 Fuku Ben
Fuku Ben's picture

It's pathetic how the schemers trying to control their little worlds

Let's see how well or poorly they control grid this market manipulation fallout

Thu, 12/18/2014 - 19:48 | 5570650 max2205
max2205's picture

SA has longterm oil contracts.....don't worry about them, just their customers who didn't hedge

Thu, 12/18/2014 - 19:49 | 5570652 Irishcyclist
Irishcyclist's picture

If the Scottish Referendum result had gone a different way..........................................avoided a bullet perhaps?

Thu, 12/18/2014 - 20:32 | 5570795 Pretty Maggie M...
Pretty Maggie Moneyeyes's picture

Would still be under negotiation at this point, though it would make that pretty interesting.

 

More importantly I haven't heard of anyone laid off yet. Fair enough no one is going drilling for new expensive stuff, but 'close to collapse' is bull.... Would news like this maybe push the price higher again?

Thu, 12/18/2014 - 19:52 | 5570666 denverdolomte
denverdolomte's picture

"impossible to make money with oil at these prices" I love this.....

 

How many years have these corps been making record profits? Wasn't raising oil costs the "documented" cause of raising costs at the counters? Or........?

 

Watching this act is just to hilarious to stop.......

Thu, 12/18/2014 - 20:04 | 5570705 Van Halen
Van Halen's picture

I gotta agree with denver here. What the hell did these guys do with all the money they made the last TEN years?

Thu, 12/18/2014 - 20:09 | 5570712 denverdolomte
denverdolomte's picture

$9.45 billion profits, or almost $104 million per day in the first three months of the year.

13 percent: The tax rate Exxon paid last year, lower than the average American family.

60 percent of its first quarter earnings, or $5.7 billion, on buying back stock. Became world’s largest dividend payer by increasing dividends 21 percent.

$1,091,000: Political contributions sent to federal politicians for the 2012 election cycle, making it the largest oil and gas spender.

91% of these contributions went to Republicans.

More than $52,000,000: Lobbying for the first three years of the Obama presidency, 50 percent more than in the Bush Administration.

$34.9 million: Exxon CEO Rex Tillerson’s salary for 2011, a 20 percent raise.

$52,300: Political contributions from Exxon CEO Rex Tillerson in the 2012 cycle, alone.

 

No. 2: Fortune 500 list of richest companies and for highest-paid CEO.

Thu, 12/18/2014 - 20:10 | 5570723 Hohum
Hohum's picture

Legacy wells.  Focus on the margin.  Much less profit per dollar of revenue than, say, financials.

Thu, 12/18/2014 - 22:17 | 5571058 dexter_morgan
dexter_morgan's picture

$1,091,000: Political contributions sent to federal politicians for the 2012 election cycle, making it the largest oil and gas spender.

Wow, AIPAC spends 90 times that on US elections and influence, so they have it covered, and thats 2008 numbers.

http://www.pewresearch.org/daily-number/aipac-outspends-other-religion-r...

 

Israeli Prime Minister, Ariel Sharon, October 3, 2001-

“Every time we do something you tell me America will do this and will do that . . . I want to tell you something very clear: Don’t worry about American pressure on Israel. We, the Jewish people, control America, and the Americans know it.”

Thu, 12/18/2014 - 20:15 | 5570735 lotsoffun
lotsoffun's picture

eddie fcking van halen?  really? here on zh?  eddie - you can riff pretty good.

but i got to tell you.  basic economics.

the big oil companies, they made boat loads of money - stupid money, money beyond goldman sachs dreams.

and you know what they did with it?

they spent it.  on everything.

and despite the rumors about goldman and wall street and coke and whore, in the oil industry, well.

they spent it, big time and got rich and fat.

and they expected it to go on for ever (the executives did).  and the little guys that got hired into the booms (and will again, but must wait), they spent it too.  big time.  had fun.  whether fracking in north dakota, or bakken, or north sea.

my friends that went to ME 30 years ago, geez.  3 weeks 72 hours on, 1 week anywhere free flight on the planet (mostly thailand).

for the time being, it's over.  it will be on again.

don't feel too sorry for them.

 

Thu, 12/18/2014 - 20:10 | 5570719 Hohum
Hohum's picture

Debt was taken on, income was paid out but why do you think this was so profitable?  Do you read tables?

https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf

Thu, 12/18/2014 - 19:54 | 5570670 reTARD
reTARD's picture

It's like a boxing match. Whoever is able to absorb more body blows will win. I suspect that it will be the BRICS/MINT who will end up standing at the end of the match.

Thu, 12/18/2014 - 19:55 | 5570679 lakecity55
lakecity55's picture

"My brilliant Economic  Strategy in the West will enable My Masters to Control The World, REggie!"

"Wonderful, Munchkins!"

Thu, 12/18/2014 - 19:59 | 5570692 Cautiously Pess...
Cautiously Pessimistic's picture

I feel like central governments all around the world are competing in a DUMB OFF.  It can sometimes be hard to figure out who is in the lead, as they all want want to go home with the 'World's Greatest Dumbass' trophy.  I am merely a spectator, filling out my brackets, trying to figure out who gets to the FINAL FOUR DUMBASS TOURNEY.

Thu, 12/18/2014 - 20:15 | 5570734 Romanov
Romanov's picture

Darwin award

Thu, 12/18/2014 - 20:24 | 5570762 Peter Pan
Peter Pan's picture

The DUMB OFF award goes to us plebs for putting up with their propaganda, lies, wars, subsidizing the crooks, their police state, their surveillance system and their money grubbing politicians who sell us out each and every time.

And yet all most of us want is a job, peace and quiet, a decent system of health, education and retirement, affordable housing and the freedom to worship our God without fear.

As far as I am concerned they can have the rest of whatever it is they want.

Thu, 12/18/2014 - 22:52 | 5571200 GeezerGeek
GeezerGeek's picture

You want far too much. You (we) are but a cog on the wheel, another brick in the wall. They want everything, including your soul.

Thu, 12/18/2014 - 20:01 | 5570695 alexmark2013
alexmark2013's picture
Junk Bonds Are Going To Tell Us Where The Stock Market Is Heading In 2015 http://investmentwatchblog.com/junk-bonds-are-going-to-tell-us-where-the-stock-market-is-heading-in-2015/
Thu, 12/18/2014 - 20:03 | 5570698 will ling
will ling's picture
will ling
Vote up!

1
Vote down!

0

why aren't shale patch , mostly out west, producers/employees/constituents threatenin' to string up their cong reps for slittin' their throats to appease SA and get putin - whatever one thinks of shale merits?

Thu, 12/18/2014 - 20:06 | 5570708 DontDroneMeBro
DontDroneMeBro's picture

"Shovel Ready"

Thu, 12/18/2014 - 22:28 | 5571135 Winston Churchill
Winston Churchill's picture

Another Kerry joke ?

Thu, 12/18/2014 - 20:07 | 5570710 stant
stant's picture

Maybe Tom Clancy was almost right, red storm rising . The Brits and Midwesterners will be cheering when the rooskies nuke the Saudi oil fields

Thu, 12/18/2014 - 22:10 | 5571081 noben
noben's picture

Guess what? EVERYONE outside of Qatar and KSA will be cheering, dancing and high fiving.

Thu, 12/18/2014 - 20:16 | 5570737 Peter Pan
Peter Pan's picture

If politicians want to make decisions that lead to disasters in the lives of ordinary people, then they too should be copping cuts to their remuneration and they too (or their children or grandchildren) should be serving on the front line of the various foreign conflicts being initiated by them.

Thu, 12/18/2014 - 20:20 | 5570751 will ling
will ling's picture

in renumeration? NO , cuts to heads OFF!.

Thu, 12/18/2014 - 20:23 | 5570763 rsnoble
rsnoble's picture

I feel sorry for the last remaining market shorts after reading this. LMAO. I suspect before long we'll have an FOMC meeting every damn day.  I think I may have to take a "reality hiatus".  No, I didn't lose my ass today but I am seriously becoming mentally defficient so if I disappear for a while don't worry i'll probably be more happy not keeping up with this daily onslaught of BS.  One thing's for sure you can't time this damn thing.  It's seemed 'close' for the past several years, just keeps getting worse, etc etc etc.

Fri, 12/19/2014 - 05:22 | 5571679 Seer
Seer's picture

"One thing's for sure you can't time this damn thing.  It's seemed 'close' for the past several years, just keeps getting worse, etc etc etc."

It's that newly exposed beachfront.  Wow, more seashells!  Just walk out a bit more and...  Eventually the tide rolls in, and in this case it's going to come in really hard, fast and high.  I don't think that it's a good idea to be hanging around the beach...

Thu, 12/18/2014 - 20:25 | 5570769 kchrisc
kchrisc's picture

Look up. Do you see them? Look carefully. Those vultures are the banksters about to swoop in to devourer the debt poisoned oil and gas carcass.

If you are in the Dakotas and look up, you will see the same.

The banksters need to repay us.

 

The banksters' "Circle of Life": Print, debt, death, devourer

Thu, 12/18/2014 - 20:28 | 5570778 Lea
Lea's picture

"ideologically pure missions of liberation".

The Nazis thought they were "idologically pure" too. We're back in the thirties, with roles reversed.

BTW: the carnage was aimed at Russia. Plunging demand, my foot. It has been proved phony. When demand plunges, you curb production, you don't flood the market with cheap oil.

Anyway, it's backfiring.

Great. 

Fri, 12/19/2014 - 05:28 | 5571682 Seer
Seer's picture

"When demand plunges, you curb production, you don't flood the market with cheap oil."

Did you miss those ZH articles about GM (and other auto manufacturers) channel stuffing?

Much of this is the result of the System forcing growth to happen, so much so that it's a force-feeding.  It's either that or the entire thing destabilizes: yes, it's going to happen eventually anyway (100% probability because growth can NEVER go on forever), but it's all about trying to continue to keep doing what you've been doing for as long as you can.

Thu, 12/18/2014 - 20:30 | 5570785 IronForge
IronForge's picture

GBR, pwned by KSA...

Thu, 12/18/2014 - 20:31 | 5570792 GRDguy
GRDguy's picture

If you happen to understand the 1889 book "The Great Red Dragon: Foreign Money Power in the United States", you would realize that what's being described in the above commentary is being forced upon the English folks in their own backyard by players within the City of London Corporation.  

Here's just one example:

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/10802700...

 

Fri, 12/19/2014 - 03:57 | 5571620 SHRAGS
SHRAGS's picture

Thanks for the book CRDguy: Really interesting read, lays out the whole "rowing the economy" method of plunder.  Its available online at archive.org https://archive.org/details/TheGreatRedDragonOrTheLondonMoneyPower

Thu, 12/18/2014 - 20:33 | 5570793 Barnaby
Barnaby's picture

BP. Beyond Panic.

Thu, 12/18/2014 - 20:31 | 5570794 xizang777
xizang777's picture

Fuck the UK!   Or rather, let's just suggest they buy their oil from the Russians.   Rumor has it that Russia has plenty of oil for sale.  All they ask in return is gold or solid money.  No Euros or British pounds!  US Dollars aren't any better.  Gold works.  

Thu, 12/18/2014 - 20:34 | 5570799 SidKhadak
SidKhadak's picture

Why the entire Western Media including ZeroHedge backed out the Peshawar Attack ?

 Continuation of Colonial British Strategy for the Subjugation of the Subcontinent

http://greatgameindia.com/peshawar-attack-the-empire-strikes-again/

The recent attack in Peshawar following the blueprint of the ongoing disintegration of Pakistan is not just a matter of penetration of the military and the intelligence services by forces friendly to the Taliban, but is the direct result of Colonial British Strategy—with the help of U.S.-based co-conspirators—to partition the country into a potpourri of ethnic entities.

The break-up of Pakistan’s westernmost wing is evidently backed by the colonial forces, and their adjuncts; it would establish an unstable state that would depend wholly on Western powers for its survival. That would cut off both India and China, in particular, from land access to the Central Asian oil and gas fields, as well as from Iran. Over a period of time, it would also endanger Russia’s southern flank.

PeshawarAttack Continuation of Colonial British Strategy for the Subjugation of the Subcontinent

http://greatgameindia.com/peshawar-attack-the-empire-strikes-again/

Thu, 12/18/2014 - 20:34 | 5570800 divingengineer
divingengineer's picture

Demand has collapsed,  ie, you got it all 1%.

Enjoy!!  You worked really hard for this,  and you totally deserve what is coming. 

Thu, 12/18/2014 - 20:35 | 5570804 Jack Burton
Jack Burton's picture

" the industry was "close to collapse".   HE WHO LIVES BY LEVERAGE DIES BY LEVEAGE!

Levering up, taking loans and issuing bonds, many of them junk, in a mad dash for Black Gold! Those who are leveraged will no have thier heads chopped of in a way of defaulted bonds, and unpaid loans. Who has got all this Oil Paper? They are screwed right along with the leveraged oil industry.

Only those whose oil operations are debt free, or nearly debt free, can sit this out till oil again rises, as it will at some point.

Imagine the deaths! North Sea Oil of the UK. Norway the oil princess of the north, the Russian Bear, and the leveraged farckers of America.

Obama, as I keep trying to tell people, is first and foremost, a committed NeoConservative War Monger. A Total "Zionest". A Puppet and total tool of the great Military Industrial Spy Complex of Washington DC, the greatest power on Earth. Obama is burning down a lot of his own people to get the end game with Russia he has sought since being elected by Liberals and Blacks, the same liberals and blacks whose mouths are shut, as the middle class is destroyed and war haunts the future. That bastard in the WHite House is the most dangerous man on this entire planet.

Thu, 12/18/2014 - 20:40 | 5570820 denverdolomte
denverdolomte's picture

Well said. I don't understand why this is so hard for idiots to understand....wait I just answered my own question.

 

Beyond perpetual war, I can not for any reason understand a desired war with Russia a nuclear power. They are closely bonded to China and BRICS, which could cause serious financial harm to the USA. 

 

Eventually the jig is up, or we look like Japan in two years time. 

Thu, 12/18/2014 - 21:18 | 5570946 anonymike
anonymike's picture

Not to worry. The global fascist elite have their risk insurance paid by the sheeple, and the rest will be assimilated. Resistance is futile, until the entire global governance edifice collapses. Then we have to make sure that The State doesn't rise again from its ashes to again consume the world.

Thu, 12/18/2014 - 21:34 | 5570987 Buster Cherry
Buster Cherry's picture

Those that cast their ballots for that fucker are the real villans in all this.

Thu, 12/18/2014 - 21:38 | 5570998 db51
db51's picture

Jack..seriously....other than the "skirmishes" which are continually breaking out all over the globe, do you really think it is possible for a hot shooting war?   Looks to me like the computer programs of Goldman combined with Janet Yellin is the only weapon that will be needed.   Russia, N. Korea, Iran....not a one of them has the balls to launch.

Fri, 12/19/2014 - 05:32 | 5571684 Seer
Seer's picture

Agree on all but:

"That bastard in the WHite House is the most dangerous man on this entire planet."

He may be a "bastard," but he's TPTB's bastard.  Again, as the programming of POTUSes has gone TPTB continue to create ever-better products: just wait for the next one.

Thu, 12/18/2014 - 20:42 | 5570827 The Shape
The Shape's picture

the Department of Energy and Climate Change said

Like those fucking idiots would know. These forecasters and gov depts don't know shit. The IEA was talking up Chinese coal consumption, it fucking fell.

The EIA was talking up another million barrels from the US next year, the guys on the ground in ND said "well it won't be coming from here because we'll be lucky to maintain current production."

The Saudis did a good job here. Right as budgets were being done for 2015 they ensured they were slashed to bits.

No supply for you!

Thu, 12/18/2014 - 20:47 | 5570845 matinee55
matinee55's picture

THIS IS NOT ABOUT THE SHEEPLE, they can FO.  This is about nailing Putin at all costs

B ad O dor

Thu, 12/18/2014 - 20:46 | 5570848 Whoa Dammit
Whoa Dammit's picture

If there is really such a thing as poetic justice, Tony "Corexit" Hayden will go TU because of this.

Thu, 12/18/2014 - 20:47 | 5570850 ebworthen
ebworthen's picture

DOW up 421 points so it's all good, right?

Thu, 12/18/2014 - 20:51 | 5570859 WTFUD
WTFUD's picture

Bang bang titty titty bang bang!

On the road again, i just can't wait to get my shit back on the road again . . . .

Cambo rowed da boat ashore, halilifallugah.

Thu, 12/18/2014 - 21:03 | 5570901 king leon
king leon's picture

If the UK oil industry goes tits up maybe Vlad can cut us a deal from the 500.000 BPD (25 Mill tonnes PER YR) goods for oil deal With Iran. Not a dollar in sight.

Thu, 12/18/2014 - 21:09 | 5570921 El Hosel
El Hosel's picture

"Secret Deal".....  WTF.  Nobody in their right mind could imagine this is anything but Political / Financial Engineering.

 

Thu, 12/18/2014 - 21:06 | 5570914 buzzsaw99
buzzsaw99's picture

you can't make a central bank omelet without breaking a few eggs. the uk should be used to layoffs by now. globalism is great for everyone. /s

Thu, 12/18/2014 - 21:10 | 5570924 ZombieHuntclub
ZombieHuntclub's picture

Doom porn!!!

 

Thu, 12/18/2014 - 21:14 | 5570930 Meremortal
Meremortal's picture

Obama is out to destroy America, he couldn't care less about Russia.

 

He's failing and he's running out of time.

The shale companies will shut down when they need to and produce later when the price comes back up due to lowered supply since nobody is drilling. Just like they did a few years ago when oil went to $37 a barrel. 

 

Amazing how that works over and over.

 

Fri, 12/19/2014 - 05:39 | 5571689 Seer
Seer's picture

"The shale companies will shut down when they need to and produce later when the price comes back up"

PRICE means NOTHING!  It's about MARGINS!  Pray-tell, how one can get margin at high prices and low volume when nearly all our major systems are predicated on scale?

Your comments suggest that there is (and would continue to ever be?) another "cycle."  To believe this as fact would require one to believe that there could be perpetual growth (because our systems require growth in order to function).

Fri, 12/19/2014 - 08:24 | 5571862 Singelguy
Singelguy's picture

The shale companies can't afford to shut down. They have too much debt. If they are forced to shut down, there will be some setious defaults which could have a ripple effect through out the credit markets.

Fri, 12/19/2014 - 08:34 | 5571897 overmedicatedun...
overmedicatedundersexed's picture

singelguy, you are correct except they will be taken out before they go under at very good prices for the robbers called banks and large corps..ever wonder why 85 families control the worlds wealth-this is how,

Thu, 12/18/2014 - 21:13 | 5570934 anonymike
anonymike's picture

Could it be that a lot of small to medium sized producers will be gobbled up by a few big fascist partners of the USSA and UK? Could these same survivors be the ones that can borrow directly from the official counterfeiters at zero interest, or better, have a financial entity that can be wangled into a bailout gift? After the industry is "saved" from collapse, are you ready for the lube job they will fleece you for, at your own request, as you're forced to financially grab your ankles before the almighty fascist globalists? They know exactly what their doing to the oil industry, and collapsing Russia's economy to attempt regime change before they can evade hegemony is just icing on the cake. This is no mistake, because its too good to be true for the global power elite.

Thu, 12/18/2014 - 21:26 | 5570960 anonymike
anonymike's picture

ps: the worst of it will be over the holidays, when the market is easiest and cheapest to manipulate. Let the calls begin.

Fri, 12/19/2014 - 05:47 | 5571695 Seer
Seer's picture

I'm not so inclined to believe that this is as nefarious as you might make it out to be.  For sure, it was ALWAYS going to come down to consolidation.  Keep in mind how critical energy is and it should be clear that it would always come down to tighter and tighter control.

What "solution" do any of us have for dealing with the fact that we're talking about a finite resource, about how to "manage" it?

I'll have to plead guilty to likely being one of the top 1%ers with regard to oil use.  I suspect that many here if not also in this percentile are pretty close to it.

Diminishing resources will always end up becoming less and less affordable, to the point at which they no longer can serve within the larger structure of the group(s) of people having previously been dependent on it.  At this point economies of scale fails; margins, no matter how much the numbers are tweaked, fail.

Fri, 12/19/2014 - 06:03 | 5571700 Ghordius
Ghordius's picture

Seer, it alway comes down to consolidation when the financial base of small and medium producers is unsound

and financial markets provide for an unsound financial base for SMEs. this has very little to do with that "return of scale" which socialists love so much, as much as "financial" capitalists

I was just recently going through some statistics about Poland, and there you see it's a very "normal" european country in regard to Small and Medium Enterprises, making up 50% of GDP

my point: a fully private SME financed through own, fully private equity and business loans from banks... can more easily weather this kind of price fluctuations

the same but public SME, financed through traded stocks and traded bonds is subject to market's vagaries in addition to price fluctuations. their stocks go down, their debt market dries up, just "because", without going too much into the details of the company

a triple-whammy that makes them more likely to be gobbled up, and so becoming part of a megacorporation, which is better suited to financial markets

so it's often the financing system that drives "consolidation". in this, "financial markets" capitalism goes in the same direction as... socialism

Thu, 12/18/2014 - 21:21 | 5570949 Chad_the_short_...
Chad_the_short_seller's picture

I am wondering if it's time to short the shale shits again. OAS and WLL have rallied hard off their lows.

Thu, 12/18/2014 - 21:30 | 5570961 TeethVillage88s
TeethVillage88s's picture

Don't worry it is part of the plan to build Brown Shirts to enforce the will of the Wealthy who care naught for the common worker.. They are now workers looking for Fascism... looking for Truth... looking for Purpose as G.W. Bush said about Saudi Arabian Youths (but not sure who said this).

Repost:

Yes, this is a huge 100 year plan or at least 40 year plan.

Take the building of Brown Shirts in the USA.

The theory is that Rural Citizens are the best choice for recruitment in the USA. They being more traditional, down to earth, conservative, Believe Christian Rules can be Black and White without much research or background, may be less education in the Men who of course went to work early, and who may not be sophisticated in Political terms... like about Socialism, Communism, Fascism, European history regarding Political Science/Development... and of course not sophisticated about where money comes from, how money is created, who are the Bankers & Backers of War & Revolution... and they don't question why the USA "Had" to go to Europe to fight WWI or WWII.

Well the above is just my interpretation of the USA and how to create Brown Shirts.

But remember the Rural, the Midwest, the South, the South West are great places for recruiting soldiers, police, and State Troopers, Tossing in Prison guards too.

Now looking at FRED Charts on Federal Employment there are some missing data because you see a trend line that is Flat about 2.8 Million Employees.

- But in the 1990s there were layoffs, including lowering the number of US Military Airmen, Sailors, Soldiers
- In 2001, G.W.B. increased the number of Contractors, contracts for DoD, and the use of contractors in Proxy wars, or to replace government & military people
- DHS was created as a Black Budget Agency with huge funding
- Military people now seem apparent in Park Ranger Service, Defense Contractors, DHS, State & Local Police Forces, and probably many other government functions

So if you want to build Brown Shirts in the USA, to Act as Government Proxies or Agents...

- Start Wars, or a Big War, to train & Indoctrinate the Young Citizens
- Maybe create Elite Associations for Citizens that recognize Strength, Discipline, Deeper Ideals, Simple Principals, and maybe even traditional Christian ideas
- Rotate Millions of Citizens through War Service
- Then Layoff many Officers & Enlisted
- Use a period of Rest from War to build hardship, difficult experiences in the Economy, Promote Ideas that War Veterans were Dangerous, Promote Ideas that Guns were being taken from some people despite Constitutional Rights
- Re-Fund Fascist Groups World Wide to simply promote this difference between Weak & Strong, and Degradation of Society to Liberals in Government, and to remember Babylon in Berlin before Hitler
- Promote the feeling in both Liberals & Conservatives that they had been lied to about History or by some Conspiracy

- Then Crank up the Economic Problems which started at least by 1980 when Outsourcing, Off Shoring, and Decapitalization of Manufacturing... Shocked the Economy

Anyway:

- There must be at least 2 Plans to ruin the USA
- One looks Very Liberal, Liberal Federal Spending, Liberal Treatment for Wall Street Oligarchs, Light Treatment of Business Fraud & Accounting Fraud
- One looks very Fascist, Everyone should think the same way, Act the Same, Speak the Same, not research, not read history, Strength & Mental Strength is Valued, and Money is seen as Strength, Competition viewed as Sacred, Business Leaders given Status & Authority without Question, Wars are good, Liberal Treatment for Wall Street Oligarchs, Light Treatment of Business Fraud & Accounting Fraud, ...Anything that Strengthen the Economy & People is Good

Thu, 12/18/2014 - 22:52 | 5571191 falconflight
falconflight's picture

Ok, GWB was a fascist, have you looked around lately?

Fri, 12/19/2014 - 05:52 | 5571698 Seer
Seer's picture

Brown shirts, Red shirts.  Does it fucking matter?  Um, no, not according to a close examination of western history:

http://www.newworldeconomics.com/archives/2014/092814.html

Resource scarcity, which ALWAYS happens as growth progresses, ALWAYS triggers tighter and tighter control, which ALWAYS tends to create wars.

Ideology (other than that of "growth") has NO affect on the outcome.

Thu, 12/18/2014 - 21:28 | 5570968 Atomizer
Atomizer's picture

Tyler, there has been no oil industry in the United Kingdom for decades. It was closed down. The same thing our US Kenyan president is doing. UK microfiche records will blow up City of London fraud. Winks. Have a look. Dig deep. Diamond in the spot.

Thu, 12/18/2014 - 21:28 | 5570969 Buster Cherry
Buster Cherry's picture

Its just like 1982 all over again.

 

The Houston Energy Corridor is gonna be like those brand new empty buildings in China. I do pray I'm wrong, but I've seen this movie before..

Thu, 12/18/2014 - 21:42 | 5571018 TeethVillage88s
TeethVillage88s's picture

Could be like WWI all over again. Perhaps after a recession or depression we go into a WWI. Then a rest with Economic Stagnation. Then strife between Liberals, Conservatives, and the Pressing need for Revenue & Profits of the Corporations or Wealthy through a depressed Labor Rate... leads up to World War II.

In this case it would be World War III with USA as a Major Party... Motivated by Profit, backed by Labor who have no jobs or low wages.

- Immigrants and Foreign Enlistees can make up part of the Military
- We have US Territories to draw Military Soldiers, Airmen, and Sailors
- Money is always a motivation for War
- Bankers & Shadow Bankers are always behind the Wars
- We don't know who the Shadow Bankers are
- We are not taught World History
- We are not Taught Economic or Political History (which are really the same thing, only they deceive us all)
- Banks make money out of thin air, they create debt based money, and there is no interest money created in the economy that would enable paying back loans by the Banks
- Credit is essential to any Economy, but Usury and Monopolies on Creating money by Private Banks... ARE ... not needed by any country... fact seems to be a Cartel of Western European Banks who control Central Banking Rules ... and Credit within each & every Country

Or I could be wrong, nothing to see here...

Thu, 12/18/2014 - 21:33 | 5570986 dexter_morgan
dexter_morgan's picture

Way to go Einstein! Keep up the brilliant work!

Thu, 12/18/2014 - 21:39 | 5571008 Laughing Sawfish
Laughing Sawfish's picture

Back the truck up!  These oil companies made plenty of money before the crude price broke $50 only ten years ago.  Now the world is falling apart because of $55 oil?  Cry me a river and go to hell.

Thu, 12/18/2014 - 22:51 | 5571195 rejected
rejected's picture

Ten yeas ago operational costs were less and in sync with the price of oil...

Thu, 12/18/2014 - 21:43 | 5571019 directaction
directaction's picture

Collateral damage. 

Thu, 12/18/2014 - 21:48 | 5571037 bigrooster
bigrooster's picture

Long UCO today!

Thu, 12/18/2014 - 21:49 | 5571039 Downtoolong
Downtoolong's picture

Every MSM news report in the past week has focused only on the economic pain Russia must be feeling from the oil price drop. There has been nary a peep of what it means to other oil producer-exporters like Britain, Canada, Norway, Venezuela, Indonesia, even Saudi Arabia, which can’t possibly sustain their local economies in the long run at current price levels. This fact alone tells me the oil market is now as politically influenced and orchestrated (i.e. rigged and manipulated) as the financial markets have been for the last five years.    

Fri, 12/19/2014 - 07:05 | 5571739 Max UK
Max UK's picture

Interesting angle on this; Indonesia and UK are examples of oil producing countries that became net IMPORTERS of oil not so long back. In the UK for sure, the consumer paid the global oil price, and the industry took the profits. Now will the consumer have to bail out the UK oil industry with subsidies and tax breaks? But to be fair, the last Labour government slapped a £1bn windfall tax on the industry. 

Different countries will respond in different ways, but I suspect that with consumers now used to higher prices, sales taxes may be applied to maintain those prices and help local production to ride out the storm. The main effect of lower prices may be to postpone new investment, and then supply will dwindle in slow fashion as wells run dry, rather than because wells are suddenly closed. This suggests that the low oil price may be around for a while.

Thu, 12/18/2014 - 22:11 | 5571084 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

any one who works in an industry like this should hedge themselves with futures contracts! the smart companies do it..why cant i?

 

 

 

Thu, 12/18/2014 - 22:12 | 5571088 falconflight
falconflight's picture

Who cares...just EMP us already...Kim

Thu, 12/18/2014 - 22:21 | 5571109 cheech_wizard
cheech_wizard's picture

Just a quick check around the country.

Gas at the local station - $2.25/gallon... Lowest in country - Lubbock, Texas - $2.11

Lowest average by state - $2.191/gallon Missouri

http://www.gasbuddy.com/gb_retail_price_chart.aspx?time=24

Standard Disclaimer: Is Vegas giving odds on it breaking below the $2.00 mark?

 

 

Fri, 12/19/2014 - 00:09 | 5571388 WillyGroper
WillyGroper's picture

$1.95 where I live.

E10

Fri, 12/19/2014 - 01:06 | 5571486 cheech_wizard
cheech_wizard's picture

Do you actually put that swill in your engine? I have to respect my german engineered vehicle. 240K miles and it still gets 32mpg highway...

Fri, 12/19/2014 - 01:44 | 5571523 mt paul
mt paul's picture

3.34 /gal

north of the Alaskan range

Thu, 12/18/2014 - 22:21 | 5571115 Catullus
Catullus's picture

So... Go balls to the way long energy congolomorate majors?

BP, Shell, Exxon, Total. Pick a few in the UK too: centrica.

Two weeks below $60 and some people are shitting the bed? Not about topline... Their operating costs are too high.

Thu, 12/18/2014 - 22:23 | 5571116 Catullus
Catullus's picture

Dup

Thu, 12/18/2014 - 22:24 | 5571119 Crtrvlt
Crtrvlt's picture

I'm confused . Is it because of some secret deal or falling demand . You can't have it both ways

Thu, 12/18/2014 - 22:24 | 5571126 silverer
silverer's picture

Wow. I was surprised that there were still people in the UK with jobs to lay off.

Fri, 12/19/2014 - 03:39 | 5571606 cornflakesdisease
cornflakesdisease's picture

British government & unemployment issues:  https://www.youtube.com/watch?v=NBHHFnUqo5o

Fri, 12/19/2014 - 06:40 | 5571722 Infinite QE
Infinite QE's picture

There are a few white people left working.

Thu, 12/18/2014 - 23:27 | 5571306 pupdog1
pupdog1's picture

Oh, pleeeze.

This industry doesn't know it's deeply cyclical??

Sounds like a prelude to taxpayer muppet rape to me.

Fri, 12/19/2014 - 00:32 | 5571427 Kelley
Kelley's picture

Well, oil IS a national defense issue. 

They can kick the foreigners off their porkulus welfare if they can't find the money. It's astounding how much the UK government puts into throwing money at those freeloaders who sometimes use their spare time to plot blowing things up.

Thu, 12/18/2014 - 23:35 | 5571323 IridiumRebel
IridiumRebel's picture

Being that the market will never ever go down I have decided to mortgage the house for a third time sell all of our cars and a couple children to go into the stock market with everything down to my underwear. I should be a millionaire by the end of January because Janet Yellen assures me so. Oh I sold all of our gold too! I sold a couple dogs! I stole the neighbors car and sold that too! Did I mention that I sold my child? we are going all into this market it will never go down it will never go down it will never go down it will never go down it will never go down it will never go down!

Thu, 12/18/2014 - 23:44 | 5571341 Victory_Garden
Victory_Garden's picture

Two vultures are looking down from a tree branch at a thirty-three day old dead stinky corrupted carcass named, the world-economy, and the elder one says to the youthful one, patients my ass, I am going to kill something.

Thu, 12/18/2014 - 23:44 | 5571344 Ginsengbull
Ginsengbull's picture

After all the houses were converted to natural gas heat...

 

They drop the price on oil.

Thu, 12/18/2014 - 23:44 | 5571347 curbyourrisk
curbyourrisk's picture

Anyone ever think it is OBAMA trying to bankrupt the OIL industry.  If you do that it leaves only solar and other inefficient technologies.

 

Fri, 12/19/2014 - 00:28 | 5571423 Kelley
Kelley's picture

But Obama LOOOOOVVVVEEEESSSSSS the Brits!!

 

(I've stopped typing to keep an eye out for a lightning bolt strike any second.)

Fri, 12/19/2014 - 07:55 | 5571787 Seer
Seer's picture

I'd figure it's mostly Party Pussies who believe this way.  POTUS is a puppet: anyone who talks as though they don't understand this is either: A) Ignorant; B) A Party Pussy.

Fri, 12/19/2014 - 00:21 | 5571415 NewAmericaNow
NewAmericaNow's picture
When the Global Sh#t Hits The Fan, You'd Better Have a Plan

http://newamerica-now.blogspot.com/2014/02/beyond-collapse.html

Fri, 12/19/2014 - 00:34 | 5571433 Impotent_Smurf
Impotent_Smurf's picture

Look in my eyes, what do you see?
The Cult of Personality.
I know your anger, I know your dreams.
I've been everything you want to be.

...

Fri, 12/19/2014 - 00:55 | 5571467 Your guess is a...
Your guess is as good as mine's picture

The O & G industry is big in Scotland, not so much the UK.

Fri, 12/19/2014 - 01:44 | 5571519 hedgiex
hedgiex's picture

C'mon. Oil at $100 there is no serious global glut. Oil at $40 there is no still no serious global glut granted potential glut in the demand deficient global economy.

Operating Costs to process x barrels are the same for $100 or $60 feeds for these majors. Also, they are unlike the big global banks in not having a huge derivatives book or physical inventories. They have some fracking ventures but not significant or highly leveraged in fact funded by cheaper debts from their Central Treasuries based on their higher global ratings.

This is an excuse for staff attrition and mouthballing refineries. Cash flows from no huge leveraged positions and with low interest rates to be tapped shall be used for stock buybacks. Also, hoping their moans shall result in their share of the pie for subsidies from their Govts either direct thru tax reliefs, etc or indirect thru no pass thru of cheap oil to the consumers/preys.

Likes of Warren Buffet who buy businesses will come along to soak up an unleveraged franchise/global brand before stock buybacks.

This BS is a classic Predator Trap.

 

Fri, 12/19/2014 - 02:34 | 5571569 U4 eee aaa
U4 eee aaa's picture

It's anecdotal but I'm seeing more traffic on the road at night whereas before the streets were dead. More of those pickups can afford to be out for a drive these days since they are saving $50 or so in a tank of gas

Fri, 12/19/2014 - 05:19 | 5571676 Dan The Man
Dan The Man's picture

Its not anecdotal at all.  I have noticed the same thing in my county.  Lots of happy gas customers.

But the corollary of that is... higher gas prices have a noticeably negative effect on traffic.  The breaking point for the driving consumer is now sitting at around 4$ a gallon.  More than that...we park.  Itd be worthwhile to remember that. 

Fri, 12/19/2014 - 07:58 | 5571789 Seer
Seer's picture

"The breaking point for the driving consumer is now sitting at around 4$ a gallon."

IF they are employed.

It's about affordability, remember that...

Fri, 12/19/2014 - 02:32 | 5571565 U4 eee aaa
U4 eee aaa's picture

I still say this is a shadow global warming end around attack by the not so closet Marxists in the white house. They want the world oil industry to collapse because that is what them, and their patron saint Algore, have been trying to do for the last decade. This is just another way to go about doing it.

Fri, 12/19/2014 - 05:24 | 5571681 Debugas
Debugas's picture

russia freezes grain export starting 2014 Dec 17

Fri, 12/19/2014 - 08:14 | 5571831 headhunt
headhunt's picture

Good for American farmer

Fri, 12/19/2014 - 05:44 | 5571691 Q-Q-Q
Q-Q-Q's picture

They need to create more secure well paid jobs, like banking. I mean seriously, who needs oil anyway. Besides bankers can create stuff out of nothing, I've seen it.

 

As long as everyone keeps nodding and clapping like seals everything will be just fine.

Fri, 12/19/2014 - 08:02 | 5571801 Seer
Seer's picture

Hey!  You miss that the abiotic oil folks might give those bankers a run for their money if given half a chance!  And, well, there's the person above who wants us to buy generators that run on water, and while water is not necessarily "nothing," it's pretty damn ubiquitous!  So, we just might have something to fall back on when the bankers for extinct.

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