THE DEATH OF THE BAKKEN FIELD HAS BEGUN: Big Trouble For The U.S.

SRSrocco's picture

SRSrocco

By the SRSrocco Report,

The Death of the Great Bakken Oil Field has begun and very few Americans understand the significance.  Just a few years ago, the U.S. Energy Industry and Mainstream media were gloating that the United States was on its way to "Energy Independence."

Unfortunately for most Americans, they believed the hype and are now back to driving BIG SUV's and trucks that get lousy fuel mileage.  And why not?  Americans now think the price of gasoline will continue to decline because the U.S. oil industry is able to produce its "supposed" massive shale oil reserves for a fraction of the cost, due to the new wonders of technological improvement.

I actually hear this all the time when I travel and talk to family, friends and strangers.  I gather they have no clue that the Great Bakken Oil Field is now down a stunning 25% from its peak in just a little more than a year and half ago:

Bakken Oil Field Production

The mighty Bakken oil field located in North Dakota reached peak production in December 2014 at 1.26 million barrels per day (mbd) and is now down to 942,000 bd.  This decline is no surprise to me or to my readers who have been following my work for the past several years.

I wrote about the upcoming crash of the Bakken oil field in my article (click here to read article)-- Published, NOV. 2013:

Coming Bust of Bakken IMAGE

I ended the article with these sobering words:

There are only so many drilling locations available and once they run out, the Great Bakken Field will become a BUST as the high decline rates will push overall oil production down the very same way it came up.

 

Those who moved to the frigid state of North Dakota with Dollar signs in their eyes and images of sugar-plums dancing in their heads will realize firsthand the negative ramifications of all BOOM & BUST cycles.

Well, the Bust of North Dakota economy has arrived and according to the article, "The North Dakota Great Recession":

Unfortunately by April 2015 it was clear that the oil markets were in a secular decline brought on by oversupply in the global energy markets fueled by a deep recession in China. As a result, companies started to lay off workers, and over the following months caused a massive exodus of people as jobs were eliminated. Nobody is exactly sure how many people have left the state, but some put estimates as high as 25,000.

 

The strongest real estate market continues to be Watford City with the weakest in Minot. However, even in Watford City the price of a three-bedroom rental home has come down from $2,500 in 2015 to a current price of $1,400. This represents a 44 percent decline of the rental price in the market.

Some folks believe the reason for the decline in oil production at the Bakken was due to low oil prices.  While this was part of the reason, the Bakken was going to peak and decline in 2016-2017 regardless of the price.  This was forecasted by peak oil analyst Jean Laherrere.  I wrote about this in my article below (click here to read article)-- Published, APRIL 2015:

What Will Death Of Bakken Field Look Like

I took Jean Laherrere's chart and placed it next to the current actual Bakken oil field production:

Bakken versus Laherrere Peak

As we can see in the chart above, the rise and fall of Bakken oil production is very close to what Jean Laherrere forecasted several years ago (shown by the red arrow).  According to Laherrere's chart, the Bakken will be producing a lot less oil by 2020 and very little by 2025.  This would also be true for the Eagle Ford Field in Texas.

According to the most recent EIA Drilling Productivity Report, the Eagle Ford Shale Oil Field in Texas will be producing an estimated 1,026,000 barrels of oil per day in September, down from a peak of 1,708,000 barrels per day in May 2015.  Thus, Eagle Ford oil production is slated to be down a stunning 40% since its peak last year.

Texas Eagle Ford Oil Production

Do you folks see the writing on the wall here?  The Bakken down 25% and the Eagle Ford down 40%.  These are not subtle declines.  This is much quicker than the U.S. Oil Industry or the Mainstream Media realize.

And... it's much worse than that.

The U.S. Oil Industry Hasn't Made a RED CENT Producing Shale

Rune Likvern of Fractional Flow has done a wonderful job providing data on the Bakken Shale Oil Field.  Here is his excellent chart showing the cumulative FREE CASH FLOW from producing oil in the Bakken:

Bakken Cumulative Negative Free Cash Flow

I will simply this chart by explaining that the BLACK BARS are estimates of the monthly Free Cash flow from producing oil in the Bakken since 2009, while the RED AREA is the cumulative negative free cash flow.  As we can see there are very few black bars that are positive.  Most are negative, heading lower.

Furthermore, the red area shows that the approximate negative free cash flow (deducting CAPEX- capital expenditures) is $32 billion.  So, with all the effort and high oil prices from 2011-2014 (first half of 2014), the energy companies producing shale oil in the Bakken are in the hole for $32 billion.  Well done.... hat's off to the new wonderful fracking technology.

According to Rune Likvern in his article on the Bakken, he stated the following:

Just to retire estimated total debts (about $36 Billion, including costs for DUCs, SDWs, excluding hedges and income/loss of natural gas and NGLs) would require about 7 years with extraction and prices at Jun-16 levels.

 

Nominally to retire all debts (reach payout) would take an (average) future oil price close to $65/bo (WTI) for all the wells in operation as of end June – 16. This is without making any profit.

 

For the wells in production as per Jun-16, the total extraction of these will decline about 40% by Jun-17, and depletes their remaining reserves with about 20%. By assuming the operations remain cash flow neutral, total debt remains at $36 B in Jun-17.

 

As from Jul-17 this would now require an average oil price of about $73/bo (WTI) for these wells to nominally retire all debts (reach payout). Additional wells will add to what price is required to retire the total debt.

What Rune is stating here is that the $36 billion in total cumulative debt will occur by June 2017.  Thus, it would take an average $65 a barrel to just pay back  the debt in seven years.  With the way things are going in the U.S. and world economies, I doubt we are going to see much higher oil prices.

Furthermore, the work by Louis Arnoux and the Hills Group suggest the price of oil will fall, not rise due to a Thermodynamic Collapse.  More about this in an upcoming interview.

The United States Is In Big Trouble & Most Americans Have No Clue

As I have been documenting in previous articles (going back until 2013) the U.S. Shale Oil Industry was a house-of-cards.  Readers who have been following my work, based on intelligent work of others, understood that Shale Oil is just another Ponzi Scheme in a long list of Ponzi Schemes.

From time to time, I look around different websites that publish my work and read some of the comments.  I am surprised how many individuals still don't believe in Peak Oil even though I explained the Falling EROI - Energy Returned On Investment quite clearly.

For some strange reason, some individuals cannot use deductive reasoning to destroy lousy conspiracy theories.  Moreover, if they do believe in Peak Oil, then they think there is a wonderful "Silver-Bullet Energy Technology" that will save us all.  I gather they believe this because the REALITY and IMPLICATIONS of Peak Oil are just too horrible, to say the least.  So, holding onto HOPE that something will save us, just in the nick of time, is better than accepting the awful reality heading our way.

And the awful reality of Peak Oil will be felt more by Americans as their lifestyles have been highly elevated by the ability to extract wealth and resources from other countries through the issuing of massive amounts of paper Dollars and debt.  Basically, they work, and we eat.

Unfortunately, the propping up of the U.S. market by the Fed and the domestic shale energy Ponzi scheme is running out of time.  This is why it is imperative for investors to start moving out of Bonds, Stocks and Real Estate and into physical gold and silver to protect wealth.

For the wealthy investor or institution that believe a 5-10% allocation in physical gold is good insurance, you are sadly mistaken.  While Donald Trump is receiving more support from Americans in his Presidential race, his campaign motto that he will "Make American Strong Again", will never happen.  The America we once knew is over.  There just isn't the available High EROI - Energy Returned On Investment energy supplies to allow us to continue the same lifestyle we enjoyed in the past.

So, now we have to transition to a different more local or regional way of living.  This new living arrangement will be based on capital that is "STORED ECONOMIC ENERGY or WEALTH."  This can only come via the best sources such as physical gold and silver.

If individuals and countries have been acquiring physical gold and silver, they will be in better shape and will be able to enjoy more options than those who have been selling their gold and accumulating lots of debt and derivatives.

Lastly, if you haven't checked out our new PRECIOUS METALS INVESTING section or our new LOWEST COST PRECIOUS METALS STORAGE page, I highly recommend you do.

Check back for new articles and updates at the SRSrocco Report.

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Setarcos's picture

One easy way to realize the situation is to hark back to the early 20th Century - say 1905 - when (almost literally) a farmer could dig a post hole and get a "gusher" (of oil) which only needed to be capped and controlled (underground pressure), to yield virtually free oli.

The "Beverley Hill Billies" exagerated an "instant wealth" of dirt poor farmers, BUT almost free oil enabled the US economy to grow very rapidly, e.g. GM and Ford.

Back in the day an extracted 100 barrels of oil required no more than one barrel of oil equivalent, e.g well heads and transportation.

By about the 1970s this had shifted to about 50 barrels of oil/or equivalent to 50 barrels produced - i.e.  about break even, due to exploration cost, deep sea platforms, etc..

NOW - such as with fracking costs and tar sand production - it can take 5 barrels of oil eqivalent to obtain 1 barrel of oil.  THINK about it.

Coal powered 19th Century production and wealth creation, but coal became increasingly costly, e.g. deeper mines, and oil "saved the day", BUT has gone the way of coal in ease of extraction.

There are NO alternatives to the energy density of coal and oil, nor any other resources yielding so many by-products.

Benjamin123's picture

This is all stupid. Worst case scenario oil and gas run out, right, and we build one coal fired station a day for the nex 50 years and learn to use steam cars, trains and boats. Aviation fuels gets 20X more expensive and only the rich fly, hardly the end of the world.

joego1's picture

Buy a few barrels of diesel while it is cheap and have something that will run on it. I totally believe that we are, like it or not, headed back to a more local economy/lifestyle. If it isn't dictated by the end of cheap liquid fuel it will be from disruption of the global supply chain. We are looking at instability in the world and it is getting much worse. The fact that one decrepit gasoline pipeline can effect 50 million peoples lives on the east coast should be a wake up call. We are one major war or terrorist event away from a global disconnect. Make your allegiances now and stock up on what you need because a completely different world is going to be on us soon.

Setarcos's picture

Bear in mind that diesel and petrol/gasolene "go off" during long storage ... perhaps you did not know this, but it is a fact which you would know if you'd ever restored an old car, for instance.

http://www.mycleandiesel.com/pages/FuelDegradation.aspx

http://theepicenter.com/blog/fuel-degradation-in-storage/

Please takke note.

Hope Copy's picture

Sound very Chinese..  Just don't put it in  a leaky well.

SgtShaftoe's picture

It's really hard to tell with the existing oil price / glut issue.  All the companies I know in the oil patch are in deep shit.  Those companies are in defensive mode not exploration and max production mode.  So it's very hard to tell if the wells / Bakken is failing or the price is the cause.  Currenty, there's little incentive to develop that resource.  That will likely change in the next couple years. 

Shale oil granted has a very short well life versus a traditional well; but why would they refrack if they were losing money as it is? 

Kefeer's picture

Answer me this ZH'ers; how will one use Gold or silver when we go Venezuelan?   Meaning, who will accept PM's for the exchange of goods and who will be local that will exchange fiat for PM's?

I was thinking of picking up a little, but I am not convinced that the money would ne better spent on Scott 1000, tampons, or bags of rice & beans.

Please show me how this will work or will it work?  I can see value after the "dust settles" perhaps, but that means keeping it safe until we get through that period, which i see as being 6-18 months in duration.

 

Please weigh in; I value your thoughts - thanks.

JetsettingWelfareMom's picture

If the shit truly hits the fan and folks are in total survival mode, cash won't hold value for long and even gold and silver (since you can't eat them either) will drop. My guess is guns would come out on top in that scenario at first as all the addicts look for drugs alcohol and tobacco to steal. After that wave dies down anyone with any useful skills, from knowing how to can, dry and ferment food, knowing what in nature is edible and how to prepare and store it, finding water, starting fires, building shelter, that type of thing: those folks should have value. 

Assuming a slower and more ordered collapse, I'd think physical cash would hold value at first until people stop seeing it as holding value. Then gold and silver. Then whatever's useful, from soap to cigarrettes...

joego1's picture

It depends on what phase of the reset we are in. If we are in full zombie hoard mode then lead is the most valuable asset. Gold and silver are useful if we get hyper inflation or deflation and people lose faith in fiat but there is still some sort of functioning economy. If there is no economy and everyone is begging in the streets food/water and the basics are the answer. The situation will be constantly changing.

Benjamin123's picture

Biggest problem in Venezuela is national guards jailing you for engaging in capitalism. Capitalism is for the state only. Maduro has recently sold over 12% of the Venezuelan landmass to international mining companies, all of this despite the usual rethoric about opposing the rothschilds, the anglo-zionists, etc. This he calls "eco-mining", which is an ecological form of strip mining, and thus does not count as selling the country to the highest bidder.

http://www.crowdh.com/the-mining-arch-of-the-orinoco-river-venezuela/

And as usual, he keeps selling oil to the highest bidders.

DjangoCat's picture

How about Mom and Pop precious metal stores, that buy and sell to local currency, whatever, that may be.  Distributed, local and available.  Like a pawn shop.

whoisjg's picture

Smaller non-breaking nuclear technologies like the spider arm reactor which shutdown and disarm the uranium/thorium automatically, in small easily built neighborhood stations, is the future. We stick with the 1950s breeder reactor designs only to harvest plutonium for bombs.

Benjamin123's picture

Small local neighborhood cesium-137 supply?

Old Poor Richard's picture

This is retarded.  Nobody said Bakken oil was cheap.  Production is down because it's not economical at current market price.

curbyourrisk's picture

Bullshit..  This guy is talking his book.  The decline in BPD is due to demand, not what is there.  They now have the ability to RE-FRAK too...  They can go in and get what they missed.  

Someone needs prices higher....

joego1's picture

At some price it becomes wash. You have to have a market for high price energy and that used to be the middle class and a functioning economy. The middle class is going bye bye.

francis scott falseflag's picture

 

RE-FRAK 

 

Less than 200bpd with the virgin refrak.  How many bpd with a second or third pressing?  I mean refraking.

Atticus Finch's picture

The only thing that matters is that the banks take possession of the oil. THe banks make a loan whose only value is a computer digit entry on the computer. The banks transfer that data entry to the driller's computer entry account. The driller cannot pay back the loan bacuase the price of oil declines. The banks foreclose and now own the oil in the ground; all by simply making a computer entry.

Anything and everything else is smoke and mirrors and a side show.

This is the Baaken Oil Field story the rest, at least is irrelavent, or at most simple nonsense.

Hope Copy's picture

until the banks start having a hard time.. then the Fed steps in..

Gusher's picture

How many oil crashes do we have to have before the peak oil idiots figure out that the oil users can crash the market anytime they want to?  It's called supply and demand.

Hope Copy's picture

Over supply is more predictable

roadhazard's picture

Not dead just not doing as much business at $45 a barrel.

steveo77's picture

Obama has "brokered a deal" to fly nuclear waste from Europe to USA.

And they started it today.  

It is described to be the biggest operation of its kind.    We don't know if they are doing 10 flights or 1000 flights.

What could possibly go wrong?    This seems almost beyond belief.

http://nukeprofessional.blogspot.com/2016/09/obama-and-cameron-flying-nu...

Pejorative Requiem's picture

This piece has more holes in it the The Bakken itself. Drill sites are getting mothballed, they are not "going dry", and they can start producing or re-producing as the price of oil increases. And as the price of oil goes up, other drill sites will open (yes,even in ANWR and off the east coast) and include the Marcellus field others in North Amaerica with very large reserves (VERY large). Also, higher oil, say a modest $65, will re-energize other dormant industries like nuclear and (gasp!) coal. Anyone ever notice that half or more of the thousands of windmills we put up are not spinning? I wonder why?

Yes, it might be possible to physically withdraw ALL the reserves from the Bakken (not gonna happen). But the only overall energy shortage we will experience in the next 100 years will come from infrastructure damage or systemic manipulation, these likely due to war or other hosilities or just good old geo-political machinations. But it won't be beacuse energy creating matricies are not available or are "running dry".

shortonoil's picture

"This article assumes some sort of technological stasis."

 

Petroleum production is the process of extracting energy to be used in the economy. When there is no energy remaining after its extraction and processing is complete, technology is not going to do any good. Technology can not create energy, it can only consume it. Relying on technology to produce energy from oil that doesn't have any to begin with is pushing on a string.

 

 

http://www.thehillsgroup.org/

SRSrocco's picture

Shortonoil,

As you can see, there's quite a LARGE group of people who have no clue what's heading our way as it pertains to the THERMODYNAMIC COLLAPSE OF THE OIL INDUSTRY AND PRICE. 

Steve

shortonoil's picture

It now requires 78,400 BTU to produce a gallon of crude and its finished products. That gallon has an energy content of 140,000 BTU. The waste heat produced when it is burned is at least 40,600 BTU per gallon. The economy is now getting, at most, 15% of the useable energy in a gallon of oil. High energy cost fields like the Bakken probably supply zero.

The fact that they are going broke is hardly a surprise.

http://www.thehillsgroup.org/

Setarcos's picture

Spot on post.  Kudos.  Many others seem to be running on hopey/faithy vapours, probably because of no practical experience in the relevant fields(sic).

cluelessminion's picture

The oil crisis of 1973 is over 40 years old.  43 to be exact.  It was a hoax of course, designed for whatever purpose, I dunno.  The older I get the more I realize how little I know about what is *really* going on.  But I digress.  Anyway, they showed people on the news not being able to get gasoline and there was a bit of a panic for a short period but everything returned to normal as far as supplies of gas.  There was a great interest in energy conservation, especially with automobiles but also home heating and other consumer uses of fossil fuels.  Laws were passed mandating certain mpg for cars by a certain date and the department of energy was created.  There was a lot of interest in energy conservation and developing alternative forms of energy.  I was a kid at the time and I remember discussing stuff like this in school.  Years pass by and the push for these things kind of lost steam.  The dept of Energy was eliminated and the mpg rules were changed.  In fact, by the 1990's you had things like Hummers and huge gas guzzling pickups (show cars) really popular.  Hardly heard anything about alternative fuels.

 

That brings us to today.  We're still discussing petroleum even though all of us knows that it's limited.  We knew that in 1973.  So in 43 years we're still using energy like drunken sailors on leave -- EVERYBODY HAS A CAR -- and public transit is abysmal.  I might add that this is only the case in the US -- in Europe and the rest of the Western world, cars are tiny and many people don't need one because the transit systems are so effective (I know there are other reasons for that but still...).  Also, alternative energy is still pretty much in the future, there has been advances in technology but no real breakthoughs.  43 years you guys, and nothing's really changed as far as consumption or production of energy.  Why not?  I think it's because a group of people, or some entity wants it this way.  When the oil does finally run out, we won't have anything really in place to replace it and it will take decades to change our transportation.  So it will be very painful for most of us.  But we knew that in 1973.

francis scott falseflag's picture

The first oil crisis, or oil embargo, in 1973 was designed in Washington to raise the price of imported oil from $4 a barrel to $12.

 

Why so?  Hubbert's Peak Oil theory had just been proven correct and TPTB, who did not know as much then as commenters know today, thought it would slow down the depletion of oil reserves globally. 

 

Hubbert's theory said we were consuming oil faster than we were producing it.  Consumption, or demand, had to be reduced.

 

According to the Laws of Supply and Demand a higher price would do that.

 

VOILA

The Gun Is Good's picture

I agree.

Merely food for thought, and not of much constructive use, I admit:

In earlier times we had better transport in and around cities (at least where I'm from): There were 'interurbans,' or electric trains that ran from surrounding communities into the citay. Many cities had these. I apologize for my lack of citation, but I know a significant number of these sytems (and other public t-port, like busses and trollies) were bought up by oil industry people (and perhaps auto, too) and scuttled during the post-WW2 push for car culture in the U.S. Tech has gone nowhere since, on the ground at least. Shit, the tech for magnetic levitation trains was invented in this country, but there are none in any meaningful use (what, aside from fucking Disney Land/World/whatever...).

Never mind the oil industry and asphalt, which covers how many square miles of our country's surface? A lot, I'm sure.

I believe (obviously my post is largely conjecture, so please feel free to fling feces accordingly) we have royally been fucked (and fucked ourselves... by lapping up materialism, which I myself rather enjoy to some predictable degree, I admit) out of where we should be technologically... and thus economically and even socially... in this country. People cannot *really* travel anywhere meaningful without taking great time and/or expense. We think we're free behind the wheels of our cars, but we are slaves to them. Sure, we can roll around our respective 'hoods, but beyond that = megabucks for gas, toll roads, or expensive plane tickets, etc. Drive and get pulled over for going "too fast;" fly and get the grope by TSA....

I've always thought people should be able to travel widely and commute to far places to work, and then even live more spread-out, empowering local "micro" economies and people's abilities to own more land, be more self-sufficient, etc. But we are hemmed in. We either live in cities where there are jobs (and we're trapped there when there are no jobs),  or we live in more natural places without jobs. Yeah, many people work over the Internets (I do), and that allows them flexibility as to where they can live, but this is not the case for most people, of course. Plus, the real value/permanency of digital work product is debatable... certainly in a grid-down scenario.

My gut has always told me we've been screwed. We are obviously not as free as all the fun songs and such promise, and I see our being chained to the familiy car, decaying roads and infrastructure as a deliberate part of a larger prevention of a potential renaissance-level evolution of sorts in this country. (Dunno.... maybe I shoulda laid off the psychodelics as a youth!)

anomalous's picture

This has been edited because I'm an ass.

If each cubic KILOMETER of earth's crust combined enough carbon and hydrogen to produce eight LITERS of oil each day that would be 100MM barrels of oil a day - a little more than our daily use now.

So each cubic kilometer needs to squeeze out a liter every three hours.

God has not stopped this process - as far as I know.

Earth has had a considerable head start - millions of YEARS.

(Use average of 4 kilometer crust thickness, 8 liters is an update I used to think the number was 1 cm3 - sorry, I am an ass)

Another edit - because I'm an ass - may we think of ourselves as living on an exquisite compost pile?

PitBullsRule's picture

They knew terrorists were trying to knock down the World Trade Center too, look how that turned out. Some things have to run their course, humans don't have enough foresight.  When the price of gas gets to the pain threshold, someone will invent a battery that makes the electric car practical, and then we will switch to e cars powered by nukes.  We already have the technology to switch, but gas is too cheap, so its not convenient.  The only people that switch to electric, are people that society likes to antagonize.  Who wants to be one of those?

LA_Goldbug's picture

" In fact, by the 1990's you had things like Hummers and huge gas guzzling pickups (show cars) really popular.  Hardly heard anything about alternative fuels."

Do you remember HOW they pushed this on us ? Hint: Hollywood and "Terminator" with his cigar. Even got cigars to become popular all of the sudden. Manipulation as always.

falak pema's picture

the death of the Bakken field is just the beginning of the end of the fossil fuel age as the marginal cost of each additional barrel of oil or Cu M of gas goes up; as will the concomitant ecological cost of its consequences; all the while the age of renewables raises its head as the leading edge of productivity gains will feed the deeper undercurrents of the "zero marginal variable cost" ecosystem advantage.

When fuel cell storage and the revolution of the involutron's coming age allows electromagnetic waves to be captured from sun and stored into a magma or "energy honey bun" we will then have unlimited renewable energy to feed the power grid full fluxed, as it will feed the photonic fed planctonic regeneration of the human biocells; allowing us to achieve virtual insitu stem cell type regeneration of the human ecosystem. We will enter the age of 1000 year individual human sustenance.

Aritificial intelligence and capture of photonic unlimited energy will open a whole new frontier.

Meanwhile, enjoy the hunger games of the dying age of Pax Americana and the concomitant age of our new Nero apeing the chimpanzee while neo-Rome burns.

There is always a downside before the next cyclical upside!

Hiho new Enlightenment.

Crisismode's picture

 

You are so full of shit it is beyond belief.

What Cargo Cult are you a member of?

PitBullsRule's picture

We already have that technology, its called "solar".  We can capture the suns electromagnetic radiation, and store it in a "honey bun" which we call a "battery".  Where have you been falak?

falak pema's picture

we are at the beginning of the Solar/wind curve : Renewables only represent 2% of primary energy used. As their onstream factor is around 20% today so we need huge fossil backup.

When the "honey bun" occurs that flux and storage capability will be like for Hydroelectric : power performance at par with nominal capacity; not 20% !

Those batteries cannot feed the grid, sorry!

dizzyfingers's picture

Factoring in whose populations are rising, whose are falling is fun too, right?

falak pema's picture

factoring in the oil conundrum is something that concerns all of humanity, not the artificiality of "doing good" (like in Syrac) type phony empire, whose elites still sing 'frack baby frack" and don't mind the fiat hegemony crack, nor the pollution of the air, oceans and lands.

Population growth is a self regulating issue dependent on local resources.

The current refugee trail is an artificially made concoction by the Pax Americana games organised in Oil Mecca and African Bunga Bunga land of plentiful RMs. Its all about cheap energy scams and fiat hegemony nooses to hang the local populations; who have no other choice but to run from their destitute lands.

What ancient Rome sowed it then reaped at home and its the eternal rule for all despots.

http://uk.businessinsider.com/the-future-of-oil-supply-and-demand-2016-9

LA_Goldbug's picture

" it then reaped at home a"

But today "someone" is pushing this migration back "home". The facilitators of this live where this so called migration is headed. The "migrating crowed" is not the decider here hence they are not reacting to the violence done to them by the facilitators.

falak pema's picture

really? Not reacting to violence in Congo, Mali, the whole saharan belt, Sudan, Ethiopia, Libya, Syria, Iraq....all for Western thirst for oil and RM for the corporates and their cronies in COngress...?

Have you not read the news since 30 years?

The people in the richer countries now apply backlash as their own economies tank in an Empire that can't sustain the super cycle of rip-offs; neither abroad nor at home.

Backlash arises when Rome's indigenous population realizes : we are now like those destitute, in the Coliseum games thrown to the lions.

Wahooo's picture

Another precious metals porn site. Give me a break.

PitBullsRule's picture

If you think this is porn, you're really not internet savy.

brushhog's picture

I agree that the cost of extracting oil is going up, but I disagree that the world cannot afford higher oil prices. Oil/fuel prices are going up...WAY UP. There are trillions being spent around the world on nonessentials...computers, ipads, movies, music, fine dining, frivolous shopping, home remodeling etc, etc. The world can and will pay higher prices for oil because oil is essential to our way of life. We will pay much, much more at the pump, AT THE EXPENSE of nonessential goods. There is plenty of room for $200-$300-$400 dollar per barrel oil.

The idea that society will choose to go without oil while they still have all those luxury, nonessentials is silly. You have $100 this month to spend on entertainment..or..gasoline so you can get to work, buy food, get your meds, etc....which are you going to choose? Will you go to the movies and lose your job/starve/etc?? No. Fuel is a necessity. That means people will continue to pay higher and higher prices to the exclusion of nonessentials until they literally do not have the ability to buy it, and then most of them will die. Its like saying that people will stop paying for air...only after every other cost has been eliminated and there literally is not one more penny to spend.

jharry's picture

Years ago Bucky Fuller suggested using Iceland's geothermal energy to electrify the world.  Since electricity is becoming more of a transport commodity, we can use the geo thermal energy from places like Yellowstone to power the US or develop Thorium reactors. This is a political problem which has been solved by present technology. Oil is convenient but not absolutely necessary to energize civilization.

anomalous's picture

The oil business has never had booms or busts.

Free IQ Tests- $5

firestarter_916's picture

Isn't it Dennis Gartman's analysis that they can make money in oil in the Bakken at $35/barrel?  I always thought that was complete shit.  It used to be $65-$80...not sure why it changed in 2 years.