Oil Price Crash!!!

logopodcastOff the microphone of RE

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Aired on the Doomstead Diner on November 29, 2014

So Much for Levitation…

wileycoyote1

How LOW can we GO here?

http://1.bp.blogspot.com/-2qXp2r9Z36Y/VHdh6F2pI8I/AAAAAAAAhcY/A7xgETnnwrs/s1600/OilPricesNov2014.PNG

Bad Times for Frackers…not a good time to stop sniffing glue…

Halliburton gets HAMMERED

http://markets.money.cnn.com/services/api/chart/snapshot_chart_api.asp?symb=HAL

EOG Resources Heads South of the Border

Discuss this RANT at the Podcast Table inside the Diner

Snippet:

…It’s Turkey Day, and I just finished consuming my Steak & Gumbo dinner, which substituted for the traditional Turkey this year. You can read more about that in my last article, A Homeless Thanksiving.

While the individual problems of each person immersed in collapsing industrial civilization are really the most important ones as time progresses here,the grand problems of the Economy and how it downspins remains important to try and understand.

Going back to my years on Peak Oil, pundits there predicted prices of $200 and more for oil as the supply diminished. This was not a scenario I ever bought into, it makes no sense. To be able to SELL Oil at $200/Barrel, you need somebody who can afford to BUY it at $200/barrel. With credit being constrained and fewer people all the time able to BUY at this price, in my view and the view of a VERY few other people in the Peak Oil community including Nicole Foss from The Automatic Earth and my good friend Steve Ludlum from Economic Undertow, really the price of Oil had nowhere to go but DOWN as time progressed…

For the rest, LISTEN TO THE RANT!!!

 

10 Responses to Oil Price Crash!!!

  • Mister Roboto says:

    The price of petroleum is doing a for-real Aunt Bunny!

  • Randy C says:

    As of the end of Friday, WTI is at $66.15. I have been asking people in the neighborhood what the floor for oil will be. They want it as low as it was before 2000 and don’t understand what drives the oil market. It must be the evil oil companies but why are prices crashing???? I say demand destruction and get confused looks. People just don’t get it.

  • Mister Roboto says:

    @RC: If you live in the USA, when you’re talking to most people, you should just assume that you’re pretty much talking to Homer Simpson.

  • Very good rant, RE.

    Of course, giving customers more credit is by itself doomed to fail. At some point they always become insolvent. Wages are nothing more than loans from the boss’ company’s customers’ banks. We have come to the end of the credit road …

  • RE says:

    Thanks Steve.

    Upcoming we have an interview with David Hughes on his Drilling Deeper report which I think you will find interesting.

    RE

  • Randy C says:

    Mister Roboto,
    I grew up in the Peoples Republic of Wisconsin and now reside in the Commonwealth of Virginia. Somehow, Virginia still thinks it is part of the British Empire….

    I was talking to a neighbor tonight who asked “what’s Goldman Sachs?”

  • Pingback: The Tide Goes Out… | Doomstead Diner

  • It seems to me the most likely chain of events with respect to the oil-frackers in, say, the Bakken region, is that if the wellhead price stays in the low 50’s, where it’s probably already priced this past week, then the number of drill permits is going to drop, and the number of fracking rigs is going to drop sooner or later.

    Since the Bakken is near the “Red Queen” point where they need a constantly rising number of wells to offset the decline in Legacy Wells’ production, then what happens next? The decline in legacy production is going to catch up with the lagging number of new wells coming on line.

    You’re then going to see the famous “gently rounded plateau” format of Bakken peak. Once the ominous crashing of legacy production gets ahead of new wells coming on line, it’s very doubtful that a new peak will form. It’s going to be downhill from there. Ron Patterson covers this almost obsessively on his Peak Oil Barrel blog (“the death of peak oil has been greatly exaggerated”).

    If the same process goes on concurrently in the Eagle Ford and the Permian Basin shale game, then it’s Game Ovah for “Saudi America” and we’re back to reckoning with post-peak production on a global scale.

    Whee, fun.

    Yours,

    The Green Senator’s Shadow Staffer

  • George R says:

    So much talk about the debt problem, and shortage of the ability to pay. But there’s no shortage of credit; debt hasn’t overtaken credit – they always exist in equal measure.

    Where’s the website that talks about the credit problem? And lists the names and addresses of the top 30 worldwide creditors, so that we can “petition” them for a debt jubilee. Isn’t it this simple, or have I missed something?!

  • Pingback: COMETH DEFLATION! | Doomstead Diner

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