Posted on 12/12/2014 9:10:50 PM PST by tcrlaf
Not so. What the regime has orchestrated is actually quite cunning in the evil sense of that word. The American-hating muzzie, bending to the will of his OPEC overlords, has crashed the oil prices while maintaining pain at the pump. Here in Texas, per gallon prices still hover around $2.29! So the consumer loses while the stakeholder in energy companies suffers as well.
During the good years of true prosperity when Newt Gingrich was in charge, I was paying just 78 cents a gallon. And yet the domestic oil companies were doing well. I know as a shareholder in XOM and thus I'm getting whipsawed by hussein both when filling up at the pump and with reduced earnings.
“poised to kill the Texas economy”
It’s not doing much for us Okies, either.
it’s a badly written sentence. I assume they mean the sector as a whole. That still sounds like a lot.
I don’t know how many banks there are in the US alone (I assume 1,000s) but how can any single company have enough collateral to secure a loan/or loans of that size?
If said company had that much in assets, why would it need to secure such a loan/or loans in the first place?
And it would be over the course of many years, not just one year.
That's the plain truth! What hussein is doing (along with Soros and Buffett) is aimed at the Conservative heartland -- Texas, Oklahoma and North Dakota. It fits into his evil jigsaw puzzle of killing Keystone XL, manufacturing the conditions for the BP oil spill, halting offshore drilling and now, bowing to OPEC with these profit-killing prices. The trio of hussein/Soros/Buffett wants nothing less than for everyone to be driving those ridiculous electric clown cars.
If the Republic can make it just two more years, the Cruz/Palin administration has a tough task ahead to steer things right. Since both are from oil-producing states, this kowtowing to OPEC will come to an end. We'll have cheap gasoline but also have profits for American energy companies. I can't wait for January 2017 when American Exceptionalism returns!
Price does not drag down margin. Price drags down MORT (death) GAGE (grip), mortgage death grip value.
The real reason is demand usage. Millions of unsold vehicles on dealer lots, average consumers can’t meet these “margins”, desperate interest rates at rock bottom, even 2013 commercials re-runs.
I’m also retired. I could afford to go anywhere. But I don’t want to. I’ve been everywhere I want to go, and since I retired, I no longer need vacations.
Travel is just a hassle. I did just spend a week away from home with my sons for Thanksgiving, but only because they threatened to invade my house if I did not. Visiting is much easier than hosting.
I'm in my mid-70s and have the same point of view. There was a time, probably until my late-50s when I loved driving for hours on end and actually enjoyed a whiff of jet fuel at airports. My passports are stamped over and over again from business travel. Most of my pleasure travel came from frequent flyer miles. I've been to Asia, all over Europe, Central America, South America, the Caribbean and places I can't even remember. When I was young I used to laugh at old fogies who just preferred to stay at home. Well sir, now I am one! :)
Truth is, I've become just like Uncle Billy from It's a Wonderful Life:
George Bailey: You know what the three most exciting sounds in the world are?
Uncle Billy: Uh-huh. Breakfast is served. Lunch is served. Dinner...
George Bailey: No, no, no, no! Anchor chains, plane motors and train whistles.
Instantaneous oil availability threatens shale investments/development???
Wow — didn’t see that coming...
Yes, I have no doubt that he is complicit with his saudi masters and soros in this.
a quick look and i found revenues for 2013 which were 52.1mm. Theres noting major about this company. While a precursor of the difficulties to come companies this size file for chapter daily in every industry.
The real issue is the state run oil companies around the world. Loss of revenues could cause riots and revolutions in nations like Venezuela. Not saying this is a bad thing. On the other hand Mexico has one too and low prices could send another few hundred thousand of Obamas orphans across the border.
And the "people" will be the banks which will have confiscated the assets. And the global oil interests which will buy the assets cheap.
Globalists and big banks win. "People" lose. But it's okay, because for awhile we get to buy a lot of Chinese junk.
Print more money! Thatll workd.? Also subsidize like korn fuel bizness ... never happen.
Very interesting post and thread.
Sometimes you have to wonder whether the highly educated spokesmodels on the corporate mainstream media are really as vacuous and clueless as they appear or whether they are just paid to look pretty and mouth the corporate line. They seem incapable of comprehending the unintended consequences of various events. The collapse in oil prices is one of those events.
There is no doubt that lower oil prices will lower the price of gas for the average American. Estimates say they will save $368 per year, which can be spent elsewhere. The highly paid shill economists who declare this will boost spending seem to be math challenged. Retail sales figures include gas stations. What isn’t spent there will be spent in another category, most likely healthcare or groceries as prices in both areas continue to escalate. It’s a zero sum game. No new spending will occur.
The worldwide supply of oil has only increased marginally over the last few years. The U.S. shale boom has been offset by declines elsewhere (Libya, Iran, Mexico). The reason for the collapse is the same reason for the 2009 collapse – worldwide demand is contracting. Europe is in a depression. Japan is in a depression. Russia’s economy is contracting. China is decelerating rapidly. The U.S. demand is flat. The implications of another global recession after five years of central banks printing trillions of fiat currency are alarming to say the least.
The cost to extract shale oil and transport it to a refinery capable of processing it is high. Honest analysts will tell you that a price of $70 to $80 is required to breakeven. Most companies don’t build breakeven into their plans. Bakken shale oil sells at a discount of about $14 per barrel due to the difficulty of extraction, transport, and processing. It is now selling for $47 per barrel. The number of permits for new rigs fell by 40% in November when oil was still selling for $75 per barrel. Do you think permits for new wells will fall at a price of $61 per barrel? Capital spending by the energy industry accounted for 33% of all capital spending in the last few years. I’m sure some other industry will pick up the slack. Right?
It seems the shale oil boom has resulted in a few jobs being created since the 2010 recession trough. In fact the states where fracking is prevalent have accounted for all the job growth in the nation. I wonder if a shale oil bust will have any employment implications. There are 9.3 million jobs related to the energy industry across the country. The plunge in oil prices created by Saudi Arabia in the 1980s created a depression in Texas which contributed to the S&L crisis. This plunge will reveal who has been swimming naked in the high yield bond market and derivatives market.
More from Jim Quinn via The Burning Platform blog in this OUTSTANDING article posted here...
http://www.zerohedge.com/news/2014-12-11/should-you-believe-what-they-tell-you-or-what-you-see
You two are killin’ me. LOL
If this keeps up one of you is going to have to start the geriatric ping list, and I’ll have to be on it. First step, what are the requirements for membership?
PS, I still enjoy driving for hours on end, just not in bad weather or at night when the deer play in the street.
Travel is good as long as it doesn’t involve airplanes, trains, or boats. Motorcycles are also questionable.
Why would Buffet want to kill the ND oil industry. His railroad, the BNSF is making Billions shipping oil by tanker car. He then bought a tanker car manufacture to supply equipment for his railroad.
The price decrease in oil is because there is more supply than demand on the world market. Then when OPEC met recently, Saudi Arabia chose not to decrease production. They want to force a cut in US production. However, they also want to hurt Russia and Iran. Russia is their biggest competitor to China and India(the new growth markets). Iran is their political foe in the middle east and scares the heck out of them more than it does us. Lastly, Saudi Arabia knows that Europe and Japan are in a recession and could not afford high oil prices.
We are probably going to watch the breakup of the OPEC cartel over the next year or so.
You two are killin’ me. LOL
obviously I can’t count, and I forgot to ping tdscpa, forgetting that he was talking to VerySadAmerican, so now the count is three, plus me, semi-retired.
If this keeps up one of you is going to have to start the geriatric ping list, and I’ll have to be on it. First step, what are the requirements for membership? I have three stents and a defibrillator that ought to count for something. Birth year sixty years into the last century.
PS, I still enjoy driving for hours on end, just not in bad weather or at night when the deer play on the highway.
Travel is good as long as it doesn’t involve airplanes, trains, or boats. Motorcycles are also questionable.
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