Need to increase the demand somehow...
I know!
Print more money!
Ping.
And so hussein’s destruction of America continues.
Low oil prices are the Will of Allah.....
You play, sometimes you lose.
This is by designed to eliminate the fracking companies. The drip, drip, drip, begins here and now moves to the next one.
That was quick. Something tells me this company was badly managed.
al-Standard oil, 2014.
Wow!
“”So, now the price of oil is down where it is, the shale gas producers might find they are unable to service their debt, so there would be a lot of non-performing loans,” Mr Strachan said.
“By some reports, $15 trillion of funds has been lent to this business, so it may well be in fact that it’s not the oil companies that are in trouble, it’s the banks.
“Over the next six months, I’ll be watching very closely to see how these banks react to their debt, if they come back to the company and say we want our money back, the company says we’ve got no way of repaying it, the bank will end up owning these oil and gas assets.”
So, where are all the articles and man-on-the-street interviews with morons blaming big oil for fixing prices?
This sucks. Gas prices are low and I’m retired and can’t afford to go anywhere.
If they stop fracking now, then supplies will go down and prices will go up and fracking will start up...again.
The Saudis can't make the oil disappear.
Shrug.
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.
Instantaneous oil availability threatens shale investments/development???
Wow — didn’t see that coming...
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.
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
Obama will bail them out.. no problem.
Russia will not put up with this for long. I bet they will be visiting the Saudis shortly.
How Crude Oil’s Global Collapse Unfolded
By Russell Gold
Since the 1970s, Nigeria has sent a steady stream of high-quality crude oil to North American refineries. As recently as 2010, tankers delivered a million barrels a day.
Then came the U.S. energy boom. By July of this year, oil imports from Nigeria had fallen to zero.
Displaced by surging U.S. oil production, millions of barrels of Nigerian crude now head to India, Indonesia and China. But Middle Eastern nations are trying to entice the same buyers. This has set up a battle for market share that could reshape the Organization of the Petroleum Exporting Countries and fundamentally change the global market for oil.
snip
The roots of the price collapse go back to 2008 near Cotulla, Texas, a tiny town between San Antonio and the Mexican border. This was where the first well was drilled into the Eagle Ford Shale. At the time, the U.S. pumped about 4.7 million barrels a day of crude oil.
Today, two hundred drilling rigs blanket South Texas, steering metal bits deep underground into the rock. Once drilled and hydraulically fractured, these wells yield large volumes of high-quality oil; at the moment, the U.S. is producing 8.9 million barrels a day, thanks to the Eagle Ford and other new oil fields.
snip