The stone age did not end because we ran out of stones and the oil age will not end because we run out of oil. New technologies that are available today will take the place of oil as time marches on. It is already happening. Most new additions to the electric grid are from alternative energy projects , such as wind and solar. We have double our solar in the last few years. If we double 6 times, we no longer need other forms of production. However, that is a tall order, and would need a continued reduction in cost.
Smart bears don't want to turn into dumb pigs !!!!!!
Yeah, we done got deflated !!! This environment already does not allow us a profit, deflation will not help unless these oil workers want to work for min wage !!!!
The Saudi's better start spending about 100 billion of those reserves on military equipment. What are the chances we will fight another war for them since they declared an oil war with the USA.
Excellent point. I didn't think they had hedged more than the first qtr. Probably more by now. You can lose on hedges if the price goes up sharply. Must be careful. The drop in oil prices are good for the airlines but Delta has over a billion in hedge losses.
I agree with one of his points and now I am him...lol. Maybe you should consult your wigi board.
No risk premium is built into oil despite the turmoil in the middle east. At this price, a short is a dangerous place to be if something happens.
We are consuming more oil than ever. We are producing more oil than ever. The producers are slightly ahead of the consumption. If this is what happens when we get a 2% surplus, God help us if we ever have a 2% shortage !
I follow the numbers and they have not turned to support a price increase. I don't rely on the talking heads to invest but they control the big bucks, so best to follow their logic.
He has a point. Unless we can get a decrease in production we will remain over supplied. One short hedge fund stated the same guys that over supplied the Nat Gas market and destroyed the price are the same guys destroying the oil prices. How can you argue with that logic. These guys talk big like Hamm, but in the background selling assets like they were his Ex-Wife's china set !!!! !!!!!!
He has spoken about declining oil for 2 appearances. You know that guy is short or has puts to protect his long positions.
Not unless we can see some reduction in production or a good increase in consumption. $45 will shut plenty of wells down, but how fast and will OPEC just increase exports. If they break their quotas then it is out right war. If Isis enters their kingdom, no help until their last well is shut down ...lol
These guys need to learn to help themselves and drop that rig count in the hundreds each week. Next we need to shut in wells. If the market does not need it then cut back. What part of that do these guys not get !!!!
The only good news is oil production did not go up. It only went down 6, which is immaterial, but it didn't go up.