Oil Price Crash!!!

logopodcastOff the microphone of RE

Follow us on Twitter @doomstead666
Friend us on Facebook

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

Knarf plays the Doomer Blues

https://image.freepik.com/free-icon/musical-notes-symbols_318-29778.jpg

Support the Diner
Search the Diner
Surveys & Podcasts

NEW SURVEY

Renewable Energy

VISIT AND FOLLOW US ON DINER SOUNDCLOUD

" As a daily reader of all of the doomsday blogs, e.g. the Diner, Nature Bats Last, Zerohedge, Scribbler, etc… I must say that I most look forward to your “off the microphone” rants. Your analysis, insights, and conclusions are always logical, well supported, and clearly articulated – a trifecta not frequently achieved."- Joe D
Archives
Global Diners

View Full Diner Stats

Global Population Stats

Enter a Country Name for full Population & Demographic Statistics

Lake Mead Watch

http://si.wsj.net/public/resources/images/NA-BX686_LakeMe_G_20130816175615.jpg

loading

Inside the Diner

Quote from: azozeo on Today at 09:15:55 AMFor various reasons, a growing number of nations are experiencing the rapid development of cashless society. Paper money may become extinct in some countries in the not-so-distan...

by Daisy LutherPrepping is a lifestyle, but it shouldn’t take over your life to the exclusion of all else.Things are pretty stressful in the world today, and a lot of people in the preparedness niche, myself included, are urging others to get prepar...

For various reasons, a growing number of nations are experiencing the rapid development of cashless society. Paper money may become extinct in some countries in the not-so-distant future. Prompted by the spread of private and decentralized cryptocurren...

For police officers around the country, the genetic profiles that 20 million people have uploaded to consumer DNA sites represent a tantalizing resource that could be used to solve cases both new and cold. But for years, the vast majority of the data ...

Even those who know little about world history have likely heard of Merlin the Magician. The mythology which has been built up around him has endured for centuries, even though most have no idea exactly where the character of Merlin came from. Also, w...

Recent Facebook Posts

Evacuation orders lifted after Palisades Fire leaves 2 injured and burns at least 40 acres in Los Angeles

The Los Angeles Fire Department ordered mandatory evacuations Monday as a fire ripped across a hillside in the affluent Pacific Palisades area,..

3 weeks ago

US troops pelted with rotten fruit and stones as they leave Syria – video

People have thrown rotten fruit and stones at US troops as they left Syria in armed vehicles, with one man appearing to shout: ‘You liars!’..

3 weeks ago

Corporate America's Second War With the Rule of Law

Corporate America’s Second War With the Rule of Law- Uber, Facebook, and Google are increasingly behaving like the law-flouting financial empires..

3 weeks ago

Photos from Rafael Nadal's Spanish wedding show a reception fit for tennis royalty

From Business Insider:

3 weeks ago

The best toothpaste for kids

From Business Insider:

3 weeks ago

Diner Twitter feed

Diner Newz Feeds
  • Surly
  • Agelbert
  • Knarf
  • Golden Oxen
  • Frostbite Falls

[img]https://scontent.forf1-2.fna.fbcdn.net/v/t1.0 [...]

Doomstead Diner Daily November 17The Diner Daily i [...]

Doomstead Diner Daily November 16The Diner Daily i [...]

Doomstead Diner Daily November 15The Diner Daily i [...]

Quote from: K-Dog on November 14, 2019, 07:45:28 A [...]

Quote from: UnhingedBecauseLucid on March 18, 2019 [...]

CleanTechnicaSupport CleanTechnica’s work via dona [...]

QuoteThe FACT that the current incredibly STUPID e [...]

Scientists have unlocked the power of gold atoms b [...]

Quote from: azozeo on August 14, 2019, 10:41:33 AM [...]

Wisconsin Bill Would Remove Barrier to Using Gold, [...]

Under extreme conditions, gold rearranges its atom [...]

The cost of gold futures on the Comex exchange inc [...]

Kicking off with the death of the Marlboro Man.RE[ [...]

Now UP on Global Economic Intersection!http://econ [...]

Alternate Perspectives
  • Two Ice Floes
  • Jumping Jack Flash
  • From Filmers to Farmers

Politicians’ Privilege By Cognitive Dissonance     Imagine for a moment you work for a small or medi [...]

Shaking the August Stick By Cognitive Dissonance     Sometime towards the end of the third or fourth [...]

Empire in Decline - Propaganda and the American Myth By Cognitive Dissonance     “Oh, what a tangled [...]

Meanderings By Cognitive Dissonance     Tis the Season Silly season is upon us. And I, for one, welc [...]

The Brainwashing of a Nation by Daniel Greenfield via Sultan Knish blog Image by ElisaRiva from Pixa [...]

Event Update For 2019-11-15http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2019-11-14http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2019-11-13http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2019-11-12http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

Event Update For 2019-11-11http://jumpingjackflashhypothesis.blogspot.com/2012/02/jumping-jack-flash-hypothesis-its-gas.html Th [...]

With fusion energy perpetually 20 years away we now also perpetually have [fill in the blank] years [...]

My mea culpa for having inadvertently neglected FF2F for so long, and an update on the upcoming post [...]

NYC plans to undertake the swindle of the civilisation by suing the companies that have enabled it t [...]

MbS, the personification of the age-old pre-revolutionary scenario in which an expiring regime attem [...]

Daily Doom Photo

man-watching-tv

Sustainability
  • Peak Surfer
  • SUN
  • Transition Voice

Waterboarding Flounder"Serious oxygen loss between 100 and 600-meter depths is expected to cover 59–80% of the ocean [...]

Of Warnings and their Ripple Effects"We need wooden ships, char-crete buildings, bamboo bicycles, moringa furniture, and hemp cloth [...]

"Restoring normal whale activity to the oceans would capture the CO2 equivalent of 2 billion tr [...]

Ukrainian Rhapsody"Our future will be more about artificial intelligence, cybersecurity, and non-state actors tha [...]

LeBron’s Chinese Troll Mobs"In the 36 hours after James’ delete, a troll mob with bot support sent a flame tsunami at the [...]

The folks at Windward have been doing great work at living sustainably for many years now.  Part of [...]

 The Daily SUN☼ Building a Better Tomorrow by Sustaining Universal Needs April 3, 2017 Powering Down [...]

Off the keyboard of Bob Montgomery Follow us on Twitter @doomstead666 Friend us on Facebook Publishe [...]

Visit SUN on Facebook Here [...]

What extinction crisis? Believe it or not, there are still climate science deniers out there. And th [...]

My new book, Abolish Oil Now, will talk about why the climate movement has failed and what we can do [...]

A new climate protest movement out of the UK has taken Europe by storm and made governments sit down [...]

The success of Apollo 11 flipped the American public from skeptics to fans. The climate movement nee [...]

Today's movement to abolish fossil fuels can learn from two different paths that the British an [...]

Top Commentariats
  • Our Finite World
  • Economic Undertow

It is harder to automate home production than car production, you are right. In the US, autos are sa [...]

Thanks! I don't remember seeing the NASA study before. Louis de Sousa and Euan Mearns put toget [...]

Different types of oil produce different mixes of gasoline, diesel, asphalt, and other products, wit [...]

I have run into way too many young people who say, "I am pursuing a career related to climate s [...]

I am not surprised at the change in emphasis. China has figured out how poorly renewables work, firs [...]

Here's an article: https://www.reuters.com/article/us-imo-shipping-factbox/factbox-imo-2020-a-m [...]

What is the shift away from bunker fuels? [...]

Yeah, when the water heater goes out the day after you just put new tires on one of the cars, etc... [...]

I join the chorus in welcoming you back. Any thoughts on how the shift away from bunker fuel on Janu [...]

@Front Range Mike "Most everyone I know is trying to figure out how to cut back and sell their [...]

RE Economics

Going Cashless

Off the keyboard of RE Follow us on Twitter @doomstead666...

Simplifying the Final Countdown

Off the keyboard of RE Follow us on Twitter @doomstead666...

Bond Market Collapse and the Banning of Cash

Off the microphone of RE Follow us on Twitter @doomstead666...

Do Central Bankers Recognize there is NO GROWTH?

Discuss this article @ the ECONOMICS TABLE inside the...

Singularity of the Dollar

Off the Keyboard of RE Follow us on Twitter @doomstead666...

Kurrency Kollapse: To Print or Not To Print?

Off the microphone of RE Follow us on Twitter @doomstead666...

SWISSIE CAPITULATION!

Off the microphone of RE Follow us on Twitter @doomstead666...

Of Heat Sinks & Debt Sinks: A Thermodynamic View of Money

Off the keyboard of RE Follow us on Twitter @doomstead666...

Merry Doomy Christmas

Off the keyboard of RE Follow us on Twitter @doomstead666...

Peak Customers: The Final Liquidation Sale

Off the keyboard of RE Follow us on Twitter @doomstead666...

Collapse Fiction
Useful Links
Technical Journals

The effect of urbanization on microclimatic conditions is known as “urban heat islands”. [...]

Forecasting extreme precipitations is one of the main priorities of hydrology in Latin America and t [...]

The objective of this work is the development of an automated and objective identification scheme of [...]

Follow on our http://www.doomsteaddiner.net/forum/