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Crude Slips After Oil Rig Count Rises For 2nd Consecutive Week
For the 2nd week in a row - after declines every week this year - the US oil rig count increased (up 5 to 645). The total rig count rose 1 to 863 (for the 3rd week in a row). The initial reaction was a smal snap below $52.50 but WTI is stabilizing now...
3rd week in a row of total rigs increased...
Charts: Bloomberg
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$40 handle coming. International Socialism must be destroyed
fill up my home heating oil tank?
chill for another month?
The reason for the crash in crude last year was a simple case of mal-investment, to understand why it happened and where oil is going it only takes a simple root cause analysis.
It's a great time to start a career in farming!
http://naturecoastpermaculture.com/2014/12/unemployed-try-wwoofing-work/
Life on collective is not so much fun, but direct access to food is enviable benefit when excrement is finally collide with rotational mechanism for generation of air pressure gradient.
Last year oil @ $110 = gallon of gas $4.25
Now oil @ $50 = gallon of gas $3.10
Looks like profit margins have increased handsomely.
Alienation of labor equals not so much fun, friend. Of course, Marx was totally against the alienation of man from his labor...as well as the use of the shekel credit and it's proxies. Therefore, the collective was anti Marxist and simply state capitalism.
You should see what real Marxism looks like. It's about as close the early Christianity as one can get.
Cheers,
A longtime admirer.
I started in 2007, every year I get better and my yield increases. It takes a few years to figure out what grows well where you are and what doesn't. Best advice I can give is get some fruit trees in the ground now as they take a few years to get producing and grab as much compost as you can get your hands on and till that right into the soil. Plant a ton of asparagus as it take a few years to get established but is basically maintenance free after that. Broccoli is one tough mother fucker of a plant. Potatoes are easy as pie, plant them in early April and again at the end of July. Spinach must be planted after you get to less than 14 hrs of day light a day for the Tri state area that's about Aug. 10th, then plant some more about Sept 15 to over winter for an early spring harvest. Carrots are in the ground in early April, don't harvest them till November, trust me. Garlic should be planted last week of October and covered with mulch to over winter. Get yourself some ball jars and a pressure cooker and get canning.
actually with carrots and other root veg you can pile your leaves over them, make it a deep pile, and harvest them throughout the winter.
I prefer my present career taking other peoples money away from them for the error of pretending they were as smart as I am. In other words; buying and selling futures is too easy. My high school guidance counselor looked at my test scores and told me, "well, you'll be a great success at anything you want to do, except farming". Boredom is not tolerable to people who need a lot of mental exercise.
Try real life for a change. Its much more interesting. You can think of farming as an endless set of engineering problems to be solved and there's always a better answer.
Boris is once attempt drill for oil in suburban low depth operation, and is find high grade sweet crude, but operation is very messy, and some time when is cut pipe, is flamable danger of spark from abrasive disc.
this is not International Socialism, this is Capitalism. in extreme form, when rich bastards have that much money already they can buy governments and make them do their bidding.
Wait, you mean they can hire one half the working class to kill the other half?
The horror..
Wrong. the bottom is in. Buy Futures now.
Once you've hedged all your production at $60+, and bought puts to catch the downside, why wouldn't you go all out.
Why is more supply coming online? Isn't this the reverse of what we should expect? At least the last one showed the OVERALLL rig count down even though OIL rigs were up.
Ernest Hemingway — 'How did you go bankrupt? Two ways. Gradually, then suddenly.'
Producers just trying to stay afloat, and "hope" for better times. Gradually to a company might be a bit diffeent/longer than to us as individuals.
Makes sense. Thanks.
Moar supply if you swallow EIA numbers.
http://peakoilbarrel.com/the-eias-questionable-numbers/
Its a strategic form of malinvestment, undertaken by the Fed. By turning the money hose onto oil production, they keep domestic energy prices down so the wheels won't fall off. See Capt. Debt Crash and the link he posted upthread. Central planning works until it doesn't.
Given the number of uncompleted wells and potential refracking of existing ones, the rig count may be a bad indicator. Production could rise substantially in the next year, even as the rig count falls.
Could be the inital price collapse was caused by a pricing in of the risk in the collapse of the EU and that collapse may about to...terrifyingly...come true.
Could be about China too of course.
i have my buy orders in at < $40.
I bet they'll all fill.
The sit and wait 'cause earl ain't comibng back for 2-5 years.
You might be right; but I don't care my stop loss orders won't kill me. I'm long from right here.
It wouldn't surprise me if one day oil storage just begins to draw down and then we find out later they passed crude export laws in the bill that can't be read. If they haven't passed crude export yet they will when Europe freezes or there is a layoff crisis.
Winter is coming.
Not too many more rigs yet, but plenty of additional wells:
https://www.dmr.nd.gov/oilgas/stats/historicalbakkenoilstats.pdf
Makes sense since production goes down if additional wells doesn't increase by at least 100 every month.