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Total Collapse In Interest For Oil Assets: Brazil Oil Auction Is Near Complete Failure
Brazil, which is caught in a vicious recessionary spiral which is only set to get much worse before it gets better, tried to obtain some much needed cash when earlier today it conducted an auction to sell exploration rights for of its oil and gas. It was, in short, a disaster.
According to Reuters, by midday Brazil had only sold 17 of 119 blocks offered. Companies made no bids at all for blocks offered in four of six basins, including areas in the prolific Campos Basin, Brazil's top producing region, and the offshore Camamu-Almada and Espirito Santo basins. Worse, the auction sold just 2 of the 10 blocks for sale in the Sergipe-Alagaos basin, which had been expected to be one of the most fiercely contested. The winning bidders had no competition.
Traditionally, a key bidder for such rights has been Brazil's state-run energy giant, Petrobras, which however as a result of an ongoing giant price-fixing, bribery and political kickback scandal, has so far not bid for any blocks. With $130 billion in debt and a backlog of existing projects, Petrobras has not said if it will bid. In all previous auctions Petrobras, alone or in a group, was responsible for at least half of sales. Not this time.
A total of 36 companies from 17 countries - including Petrobras, ExxonMobil Corp, BP Plc and Royal Dutch Shell Plc - registered for the auction. None of the majors have bid so far. Only a handful of sold blocks were even contested.
The locals are not happy: "The feeling is one of frustration," Aluizio Dos Santos, mayor of Campos, Brazil and president of the Organization of Oil Producing Municipalities, said on the sidelines of the auction in Rio de Janeiro.
"It has been worse than we expected," said a senior official at Brazil's ANP petroleum regulator, which is running the auction.
As Reuters adds on Tuesday Delcídio Amaral, a senator from Rousseff's ruling Workers' Party said the auction would be a litmus test for Brazil's oil industry. In which case one can't help but wonder just how much worse it will get not only for Brazil's economy, but for the price of oil: after all if the majors did expect a rebound in oil prices, they would be the first to snap up exploration rights on the cheap.
This time none of them have bid.
The irony is that one of the catalysts for yesterdays remarkable surge in the price of oil was industry executives warning of a "dramatic" decline in U.S. output that could lead to a price spike. However, when it came to putting their money where their mouth was just 24 hours later, not a single one of them stepped up!
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But, but... what about the robust recovery in the US and EU?
All part of the Vampire Squid's grand plot to capture all real assets before they crush the world of fiat.
Miners, ore, energy, land, etc. All theirs. Keep watching. Its guaranteed.
Can't wait for those summer olympics in Rio next year!
A few years ago Brazil fined CVX an exorbitant amount of money for a trivial spill. Funny how extorsion can come back to haunt you.
This. When oil was $90 a barrel the ANP (And Petrobras) ran Brazilian offshore oil like one giant, corrupt rip-off. They lied, cheated, stole and broke contracts with pretty much all the majors and large service companies. Fuck them. Once bitten, twice shy. Most corrupt shit I have ever seen, was working in offshore Brazilian oil, and that includes working in Angola and Nigeria.
Obama will not finish his second term! Current Events Linked to Ancient Biblical Prophecy!
http://motivationdose.com/is-america-babylon/
things were not looking food for brazil in march of this year either..
Brazil On The Brink of Recession..Annual global population growth is decelerating...and population "growth" is more about the old living longer than net increases in the number of young.
The link lays out what the Fed and CB's are truly fighting and why it's a fight they can never win...attempting to substitute interest rate cuts, debt, QE, etc. for decelerating population growth and consumption.
http://seekingalpha.com/article/3556596-forget-peak-oil-its-all-about-peak-population-growth
Massive overcapacity is rampant and will become ludicrous...and implementation of NIRP is only a matter of time.
http://seekingalpha.com/article/3548606-todays-stimulus-and-who-will-pay-tomorrows-bills
Humans screwed up. We chose to live longer AND reproduce more, when it should have been the opposite in each case.
Is this "liftoff?"
Hey Mark -
Since 1990, global population has risen by 2 billion persons...
However, the growth crushing asterisk is that the 0-5yr/old global population segment has risen by a mere +16m since 1990...all of the remaining 1.984 billion of the population "growth" is simply everyone living longer.
NIRP is only a matter of time.
http://seekingalpha.co...
only thing Brazil has worth having is pussy
... and jungle.
Lots of jungle.
only thing Brazil has worth having is pussy.
You may be right and thats why the bidders are late to the table.
A buddy of mine goes over there maybe too often.
...and bush.
Brazilians. Not much bush.
Bullish for oil prices right? This good news will rocket the Dow above 17000! buy buy buy
Since Brazil is the next Venezuela would you invest there?
Exactly. Maybe a 50/50 chance that any foreign assets are eventually nationalized, so why would someone want to invest?
50/50? You sir, are an optimist.
The huge drop in oil prices over the last couple of years is proof (as if we needed it) that the price is set arbitrarily according to the whims of Saudi Arabia and the other oligarchs. The Sauds wanted to crush shale, and the Western oligarchs wanted to punish Russia for asserting itself internationally, and voila -- cheap oil. Meanwhile, we all pretend we live in free societies and that there are free markets.
Yes, but football.
Ooh, and look - a loaf of bread! Yum...
Not to mention Olympic Circusses.
It's not an Olympic Circus.
It's an Olympic Movement!
And to quote Harry Shearer (www.harryshearer.com) "We all need one, every day!"
http://harryshearer.com/le-shows/september-13-2015/?tag=olympic (go to 16:20)
No doubt Rand, there are two birds to be killed with this one stone. The USA is happy about Russian budget constraints due to cheap oil and lower revenues for Russian State. But the USA had only one real economy growth engine, and that was Fracking for oil and gas. We all know the high paying jobs and huge tax revenues the USA was getting from the energy boom. So, in order to screw Russia, the USA has seen it's one bright spot of economic wealth creation go up in smoke.
So Saudi itself is now borrowing huge amounts of money to meet budget requirements. And cashing in reserves. Saudi is being hurt, it's income has tanked.
So if we are honest, we have to admit. Russia is hurt. America is both hurt and helped. And Saudi is gaining market share, but giving up huge revenues to get it.
Who cracks first? Russia is no doubt hurt, Putin have slashed their budget across the board, by 10% in just one move. But the whole Russian economy is now transforming itself to production for dometic consumption, in place of importing from the west using oil revenues. Russia needed to get out of the oil trap, and now that is just what their official policies are. Manufacturing and Farming are now top of the agenda, especially agriculture. All of this means short term pain for Russia, for long term gain.
Saudi is not having a smooth ride here, nor is the USA. So laughing at Russian pain is not all it is cracked up to be. And, with Chinese and Indian deals, Russia has no lack of enterprise going forward, no lack at all.
Talk about shooting yourself in teh foot in Time of War, the U.S. seems to be following in the footsteps of the Russian Czars...\
War-time prohibition of alcohol was enacted by Czar Nicholas in 1915 to boost patriotism and productivity, but instead damaged the treasury and funding of the war due to the treasury now being deprived of alcohol taxes, which until prohibition had been a State Monopoly and major source of revenue.
Hello! Take any crayon out of the box. Either end of any crayon will work. Now try to connect the only two dots on the paper!
{Oh yea, we don't "Kill Two Birds With oOne Stone" but rather, "Feed Two Endangered Birds With One Handful on Non-GMO bird seed."}
Low oil prices make it kind of tough to sell deep water drilling rights, especially with Brazil's recent political climate....
I hope George Soros is heavily invested in all plummeting markets.
What % of Petrobras does old "goon squad" Georgie Boy own?
Yesterday I posted on Oil and cost of production versus reserves. I named Brazil for a reason! I named Brazil because of all the hype surrounding Brazils huge oil finds off shore. Well, like I said, Oil is not all the same. Brazil has enormous reserves, huge, BUT, all are deep on the margines of production. This is high cost extraction out of deep waters and deep geology. Yes, it is there, lots of it, but in markets, in capitalism, all that matters is cost of production.
If my back yard has proven reserves of a trillion barrels, and it costs 1 barrel of oil to get 1 barrel out, who is gonna bid on my site? Nobody. Of course Brazil is not that bad off, but in a era of cheap oil right now, Brazil's oil sits way out on the margines, like Frack Oil and Tar Mines. Large capital investment needed, and a high price in the market needed to get a profit from each barrel taken out and gotten to a refinery.
Brazil was hyped by many, hyped like mad, as proof of endless oil supplies. Maybe it is endless, but all that matters is how much it costs to pull one of those barrels out.
I am surprised by how many people who just can't figure that oil is a market commodity, it is only worth what people will pay for it, and profit is only equal to Sale price minus production costs. That is why frackers are screwed, they are pulling High Cost Oil.
Oil=War....ain't much fun anymore...go figure
It's the same cuntlicks with a new idea.
Facts about the UN Oil-for-Food Programme - the United Nations
...
Putin gets kicked square in the nuts. Again.
BTW. Anybody think he's really over there helping Syria "his friends"? BWWWWAAAAHHH
He's creating a situation whereby he thinks he can destabilize the price of oil higher -- thereby saving his ass via the Russian economy climbing out of a hole. Putin NEEDS that price of oil to higher, but the world ain't playing along with his dimwitted schtick.
Doubt this? Then what is he really doing there? No really? And a big big big BTW, does China want oil prices higher? NO they don't and Putin is screwed. Again.
Vladimir has cried "checkmate", and then asked if we are any better at Chinese Checkers?
"Vlad the bare chested" has screamed checkmate? BBBWWWAAAHHHH!!!!
Really? And when a few Russian planes goes down (hopefully not captured and suffering the fate of the Jordanian pilot) and Russian troops start getting sent back to Moscow in a different order than their arrival?
Dear sir, have you seen a chess board before? I'd reckon that no you haven't...
Yes I have, and might I say, that's a lovely chess board necklace you're wearing...does it interfere much with getting oxygen and blood to your pea brain or are you always this incoherent?
Besides, I know little about Brazil or it's economy. But it seems to have a very large poor population, and many have gone deep into the Amazon trying subsistance farming out there. Cities are famous for slums, no go zones that rquire the army to go into. My guess is Brazil will go down the path of revolution and chaos if something doesn't turn around. And the Olympics in Brazil was an awful idea! Really awful!
But we need $150 barrel oil to roll off a slave debt profit. All that tax at the pump is losing portfolio traction.
/ fuck you con artists. Hahahahahaaa.
This should drive oil lower.
More people unemployed, less demand.
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Here's what the oil producing nations are quick to forget.
The oil consumption of OECD countries PEAKED around 2008-9. This means we need less and less all the time whilst the world is finding more and more all the time.
This is of course the rational as to why OPEC and the Russians are trying to sell their oil to every tiny developing nation instead because they are still on the upward consumption ramp. This also means they get hit by higher oil prices much more than the OECD consumers whaich are starting to say "meh" to higher oil.
Must be peak "peak oil".
Ha! I see what you did there!
Non peak oil demand. Chris Martenson must be having a meltdown. Your website relies on funding to make a living. I cannot listen to non peak oil issues.
Sorry Chris. I learned a lot from your videos. Parted ways once global warming became your revenue stream.
Perhaps Brazil's oil is hard to get at - or maybe it is not even there ?
Apparently it looks at little different for Mexico.
Mexico has some really savy business people.
http://www.nytimes.com/2015/10/01/business/international/successful-auct...
i got $50 can i have a block or 2?
What do you mean, Brazil stocks have been on a tear the last week.
I would give them a ham sandwich for one block..but that is all
Kesche is releasing his Plasma tech later this month....
...
Because the month before it was supposed to launch, and the month before that and the year before that...
Apparently you can get early access to his technology (gleaned from UFOs of which he's given to the Iranian AF) if you pay in advance for with a "small licensing fee"...
I know what you are talking about. He's a dimwitted scammer...
"I know what you are talking about. He's a dimwitted scammer..."
Funny that. Our Armed Forces have taken a very keen interest in his designs and word has it they're building a rather sizeable unit now.
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Yea funny that... Well you can still reserve your space flight for the nominal fee of 50,000 Euros...
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Keshe timeline of lack of success
Documenting M.T. Keshe's long thread of promises of delivery with postponements and no delivery, ultimately, for previous products announced. Buyer beware of his newest product announcement, for which he is taking payment, but hasn't delivered any product yet, for it is not made yet.
Keshe is not exactly “selling” these devices. He is taking orders and money. The situation is quite similar to his “3-4 kw plasma generators”, which he started “selling” in 2011, and never delivered. He delayed the delivery about 15 times over several years, until most people forgot about the topic. I kept explicit track of the first 8 delays (source links for the quotes can be found in the second forum thread linked to below):
Keshe originally announced these generators in April 2011:
The Foundation submits for sale as of today for delivery early next year [2012] the following:
Portable 3-4 KW power systems on DC and AC 24 hours a day supply for the value of 5000 euros.
(Keshe on 04/11/2011)
Later he postponed the delivery from early 2012 to December 2012 (1st delay). He repeatedly confirmed this date throughout 2012, until December 21st (2nd delay):
[W]e have redesigned and corrected a number of systems in the reactor in order to comply with all international laws with respect to the use and safety of the systems.
Because of these adjustments, we have to delay the delivery of the systems by 45-60 days from 31.12.2012.
(Keshe on 12/21/2012)
He didn’t keep this date (about end of February) either (3rd delay):
Due to delivery from suppliers for some parts of the new [vacuum] seal systems we are behind the testing and releasing the generators.
Once we receive the newly manufactured parts in the second week of March from the manufactures: It will take us another 15 to 30 days to test and finally release the generators.
(Keshe on 02/26/2013)
He didn’t keep this date (about mid April) either (4th delay):
The non-nuclear reactor that is the basis of the power generator was received from the manufacturers this week.
The reactor will be put through the setting and start-up processes in the next 2- 3 weeks.
Following this the Foundation starts the full testing of the new system and during this phase starts developing the plasma in the core using the non-nuclear material core.
We will report the results to the forum by the end of May.
(Keshe on 04/17/2013)
At this point he stops talking about an actual delivery date (although he was allegedly already in the mass production phase months before, and has collected tens of thousands of Euros in deposit payments) and promises only “test results”.
He didn’t keep this date (end of May) either (5th delay):
Actually in next four weeks we should be going into the test mode, and about three, four weeks later we should be able to show, I hope, the first video.
(Keshe on 05/22/2013)
He didn’t keep this date (about mid July) either (6th delay):
The reactor is now going through initial testing and then test for full load will start in the coming weeks.
We should be able to confirm the testing process, results and the working of the systems with release of videos in the next 6-8 weeks.
(Keshe on 07/19/2013)
He didn’t keep this date (about mid September) either (7th delay):
The work with the new non- nuclear reactor for production of energy starts today after 4 weeks of redesigning the reactor systems.
We shall post the results in the coming weeks.
(Keshe on 10/17/2013)
The term “coming weeks” is rather vague, but a timeframe of about one to four weeks would probably be a reasonable association. A timeframe of more than two months is IMO definitely not covered by the colloquial meaning of “coming weeks” (among other things because it is already in the range of “coming months”). Therefore:
He didn’t keep this date (about mid November) either (8th delay):
The Keshe Foundation will make full disclosure about test results and the delivery of the non-nuclear power generator on 19,12,2013.
I hope all will be satisfied with our disclosure about power generator.
(Keshe on 11/19/2013)
As I mentioned above, this continued a couple of more times, until most people forgot about the topic. There never was an actually working generator.
The same will happen with the new systems. The delays and excuses will probably start around the end of September.
Keshe will never deliver any working technology (beyond worthless toys like his “CO2 capture kit”), because he doesn’t have any. He doesn’t have the slightest clue of science, and his theories are utter nonsense. In 2012 he imposed his legendary “USB stick” on a couple of countries (around 20) via their embassies in Belgium. The content of this very USB-Stick, allegedly containing all or at least the key parts of Keshe’s miraculous secret knowledge, was finally published in 2014. It turned out to be completely worthless, as all of Keshe’s pseudoscientific ideas. Nobody accomplished anything with it.
People seem to forget Keshe’s past blunders quite quickly. I recommend reading these two extensive threads about his history:
http://www.energeticforum.com/renewable-energy/13583-facts-about-keshe.html
http://www.getoutofdebtfree.org/forum/viewtopic.php?f=60&t=59005#p208039
Not covered in these threads is Keshe’s most remarkable blunder: Declaring himself the Messiah in April 2014. It amazes me that anyone is believing his fantasy stories after that.
Keshe’s world is built on lies and delusions. Enter to your own detriment.
Basically everybody knows that with improving CRISPR gene editing technology - it is only a certain amount of time before some basic bag of bugs can make hydrocarbons cheaper than offshore deep water drilling can extract them. The game is over pretty soon folks. Pump 'em while youse got em, Roughnecks. The game will get rougher from here for the Dino-Oil industry.
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Damned straight! That may be the most intelligent post ever written on ZH.
The Economic Hitmen have more then they need here in the USA. Always have had, and always will have. They also have the Skilled Hands to produce a well. Something other nations are in short supply of having. B.R.I.C.S right?