Harold Hamm: Oil Above $60 Would Justify New Drilling

47 Comments on "Harold Hamm: Oil Above $60 Would Justify New Drilling"

Dustin Hoffman on Fri, 10th Jun 2016 7:59 am 



Hmmm, can’t wait for all the GOP chants with TRUMP leading the charge
DRILL, BABY, DRILL
How a North Dakota oil billionaire is helping shape Trump’s views on energy

http://www.adn.com/alaska-news/nation-world/2016/06/06/how-a-north-dakota-oil-billionaire-is-helping-shape-trumps-views-on-energy/#civil-comments
There are good reasons Trump may think the situation is hard to believe: It isn’t entirely true.

Those two statements contain two errors and one questionable assertion. Trump named the wrong agency, inflated the amount of the fine at least 133,333 times over and used the highest end of estimates about the number of bird deaths from wind turbines. Moreover, a federal judge tossed the duck case out of court in early 2012. No fine was paid

joe on Fri, 10th Jun 2016 10:52 am 



Bumpy plateau oil economics. Saudi cant grow, they could be peaking, tight oil is going to keep prices down relatively for a few years yet until they use up the easy to get tight oil. Then its over.

Plantagenet on Fri, 10th Jun 2016 11:25 am 



Are people really so naive that they think drilling will happen with Trump, but won’t happen with Hillary?

Did no one notice that the explosion of drilling over the last 7 years that created the current oil glut occurred under Obama?

Cheers!

dave thompson on Fri, 10th Jun 2016 11:36 am 



I noticed the current over supply, caused by an affordable energy starved economy.

Boat on Fri, 10th Jun 2016 2:03 pm 



dave thompson on Fri, 10th Jun 2016 11:36 am

I noticed the current over supply, caused by an affordable energy starved economy.

Affordable? Except for 2 years after the crash the world has been adding over 1 mbpy in demand. Have you even looked at demand by year charts?

Have you attempted to look at other fuels/efficiency/tech that are eating away at oil’s demand.

Get back to me will ya?

GregT on Fri, 10th Jun 2016 2:33 pm 



“I noticed the current over supply, caused by an affordable energy starved economy.”

Even with ZIRP and an exponentially growing mountain of un-repayable debt, projected growth in US GDP for 2016? An anemic 1.8%.

The economy is not only energy starved, it is on life support. Without continued injections from futile central bank policies, the economy would already be toast.

A dead man walking…….

Boat on Fri, 10th Jun 2016 2:56 pm 



“The economy is not only energy starved”

The economy is not energy starved. The economy is more efficient and the price of oil is not as important. Plenty of oil. Hell were in a glut. Hundreds of thousands of barrels paying storage fees. Tankers all over the world acting as storage. The world has never had so much oil sitting around.

dave thompson on Fri, 10th Jun 2016 3:04 pm 



The past 10 years have shown no substantial economic growth, even with a substantial growth in all liquids, crude and condensate. The peak oil dynamic now is in over drive. What we are witnessing is the end of the oil age. Net end user energy at affordable prices that grow the economy and cover interest on debt can no longer be serviced in all sectors. $20-50 dollar oil will not provide growth for the economy. Prices above the $50 range may spur more production but not for long, the economy tanks and prices drop. Producers and refiners are then left high and dry, pun intended. LOL

Apneaman on Fri, 10th Jun 2016 3:13 pm 



Boat, obviously that oil is too costly for the economy to afford.

Apneaman on Fri, 10th Jun 2016 3:50 pm 



Chesapeake Energy-spinoff Seventy Seven files for Chapter 11

http://petroglobalnews.com/2016/06/services-firm-seventy-seven-files-chapter-11/

penury on Fri, 10th Jun 2016 3:58 pm 



I suppose that a large drop in manufacturing, ocean transport of goods, reduced truck travel might have a minor bit to do with the oil glut. Repeat after me “People have no f word money. Nations are broke or in debt up the wazoo. ” There are at least 40 million U.S residents on EBT cards a million immigrants to care for and 1 dollar of every four is spent on military. How does that make a growing economy?

onlooker on Fri, 10th Jun 2016 4:08 pm 



Absolutely, the information coming out about a relatively healthy US economy or world economy is just disinformation and deceit. And we all know greater economic hurt is coming online.

Plantagenet on Fri, 10th Jun 2016 4:39 pm 



How can the economy be “energy starved” when we are the middle of an oil and NG glut?

Think before you post, people….

Cheers!

onlooker on Fri, 10th Jun 2016 4:50 pm 



Plant you are not considering Penury wide points are you? Nor the fact that unconventional oil companies are facing bankruptcy due to the relatively low oil prices. I suppose you are going to say that the Economy is just fine because of the Oil “glut” Even though all the economic fundamentals especially debt are dragging it down.

Plantagenet on Fri, 10th Jun 2016 5:13 pm 



@onlooker

Why would you imagine the economy is fine? Look around you—the oil glut and low oil prices are ravaging the oil patch in the US, putting companies out of business and workers out of jobs. The last jobs report was a stinkeroo, and the only reason the unemployment rate is low is that millions and millions of people have dropped out of the workforce.

Please, lets pay attention to the real-world data.

Cheers!

jjhman on Fri, 10th Jun 2016 5:14 pm 



dave thompson:
“The past 10 years have shown no substantial economic growth, even with a substantial growth in all liquids, crude and condensate.”

The economy of China doubled in the 10 years between 2005 and 2015
http://www.eia.gov/todayinenergy/detail.cfm?id=8070

jjhman on Fri, 10th Jun 2016 5:17 pm 



onlooker:
“Absolutely, the information coming out about a relatively healthy US economy or world economy is just disinformation and deceit. And we all know greater economic hurt is coming online.”

Do you have some data to support that statement? I often question official inflation data based on my own personal experience but its risky to compare anecdotal data to larger data sets.

onlooker on Fri, 10th Jun 2016 5:19 pm 



J, they’re are countless articles and sites that point out that the US economy and the world economy are in bad straits and getting worse. In fact for some time since even before the debacle of 2008. Try three sites Naked Capitalism, Zerohedge and The Economic undertow

onlooker on Fri, 10th Jun 2016 5:38 pm 



Plant, I think we are actually agreeing. Miscommunication haha.

GregT on Fri, 10th Jun 2016 7:54 pm 



“The economy of China doubled in the 10 years between 2005 and 2015”

Rather than utilizing fossil fuel energy slaves, we have been in essence utilizing human slavery to manufacture our consumer crap.

onlooker on Fri, 10th Jun 2016 8:02 pm 



Rather than utilizing fossil fuel energy slaves, we have been in essence utilizing human slavery to manufacture our consumer crap.– Absolutely, in fact you can say Globalization has represented a way in which Corporations have now been able to exploit the entire planet and gain advantage by taking standards down to the lowest common denominator by looking for concessions and areas whereby they could extract as much profit as possible.

Boat on Fri, 10th Jun 2016 8:20 pm 



Job loss has been huge in both nat gas and oil in the US but unemployment has dropped anyway. The world has chugged along at 2.4 percent for years even with China’s growth slowing. In spite of the doom talk there is no collapse. More miles driven but less fuel used. This is the new normal as tech and efficiency cuts into demand.
Housing is no different. Less homes built because remodle and tech can make homes basically last forever. Less energy to heat and cool the home.
The list goes on. As tech and efficiency improve we will see even less growth and lower gdp because it will be cheaper to live. This is not a crash.

energy investor on Fri, 10th Jun 2016 8:36 pm 



With fewer real jobs and an increasing number exiting the work force, and with more jobs each year being exported, how do the economists figure the economy is getting more efficient?

Oh, I know, you print more money and you increase credit and that bumps up notional GDP in dollar terms. Then you fudge the real GDP by making some assumptions that folk are better off…and then say it is “more efficient”.

What frigging garbage. The problem is that it isn’t just US numbers getting hyped, it is happening all around the world.

We will soon be so “efficient” that the world will be in a serious depression.

GregT on Fri, 10th Jun 2016 8:59 pm 



“We will soon be so “efficient” that the world will be in a serious depression.”

Take central bank policies out of the equation, and in reality it already is.

GregT on Fri, 10th Jun 2016 9:02 pm 



“As tech and efficiency improve we will see even less growth and lower gdp because it will be cheaper to live.”

More complete and utter nonsense from the master of nonsense himself, Kevin. AKA, das Boat.

makati1 on Fri, 10th Jun 2016 9:05 pm 



The great leveling is coming to it’s end goal.

0.1% elite lords.

99.9% serfs.

What a shock for the first world and especially America. We are almost there. One more financial shock…

dave thompson on Fri, 10th Jun 2016 10:32 pm 



jjhman, Could be true in China, however what is the debt ratio to growth? China is now having huge debt service issues, as the rest of the world is. Sorry growth as we knew it/know it is over. All the indicators show it, we are now in world industrial economic decline/collapse. The limits to growth/club of Rome deal is done. The market over production/loss of affordable energy for the end user can no longer show the endless profit and growth of yesteryear. Now dig ya’all SHUT IT DOWN! Stay home read a book, talk to your neighbor. Spend no money on unnecessary BS. SHUT IT DOWN!

makati1 on Fri, 10th Jun 2016 11:04 pm 



I just read that it takes $10 of debt to add $1 to the GDP of America. I doubt the Chinese could beat that record.

Kenz300 on Sat, 11th Jun 2016 7:08 am 



New Documents Show Oil Industry Even More Evil Than We Thought

http://www.huffingtonpost.com/entry/oil-cover-up-climate_us_570e98bbe4b0ffa5937df6ce

Climate Change is real….. we will all be impacted by it.

Oil Giants Spend $115 Million A Year To Oppose Climate Policy

http://www.huffingtonpost.com/entry/oil-companies-climate-policy_us_570bb841e4b0142232496d97

The Kochs Are Plotting A Multimillion-Dollar Assault On Electric Vehicles

http://www.huffingtonpost.com/entry/koch-electric-vehicles_us_56c4d63ce4b0b40245c8cbf6

Inside the Koch Brothers’ Toxic Empire | Rolling Stone
http://www.rollingstone.com/politics/news/inside-the-koch-brothers-toxic-empire-20140924?page=2

penury on Sat, 11th Jun 2016 9:40 am 



Boat, just to add to your cheaper more efficient argument unemployment is down: approximately 30 per cent of the eligible work force is no longer counted as unemployed because they have not looked for work lately. They have been out of work for too long. Of course it is much cheaper to live in a tent in the woods than in a house, EBT cards mean its cheaper to eat, food banks also lessen your expenses. Tech is rapidly replacing low wage jobs, making corporations more efficient, allowing former workers more leisure time. Ain’t progress wonderful?

shortonoil on Sat, 11th Jun 2016 11:36 am 



“Take central bank policies out of the equation, and in reality it already is. “

Our analysis of the EIA data set displays some very unusual activity. Between 1960 – 2005 the GDP/ $ of crude ratio averaged $56.13. Between 2005 – 2014 that ratio fell to $29.75. In 2015 it again advanced to $61.77. In 2014 the cost of crude amounted to 3.36% of world GDP, in 2015 it was 1.62%. This is the largest anomaly that has ever arisen in the 56 year history of that series. There has been a dramatic change in the relationship between crude production, and world GDP.

http://www.thehillsgroup.org/

Davy on Sat, 11th Jun 2016 11:47 am 



The Pension Bubble: How The Defaults Will Occur
http://www.zerohedge.com/news/2016-06-10/pension-bubble-how-defaults-will-occur

“Experts worry about stock, bond and real estate market excesses. But a bubble is forming that dwarfs them all: in pension plans. Millions of Americans and Canadians who are counting on pension benefits to fund their retirements risk being severely disappointed.”

“Pension funds, which have been issuing over-optimistic revenue forecasts for years, aren’t going to earn nearly enough money to pay the benefits recipients expect. Much of this relates to secular stagnation in the economy. Bonds, which form a major part of most plans’ holdings, earn next to nothing in interest.”

“At least private sector plans have some money in them – public sector plans are in even in worse shape. Governments have almost nothing put aside to fund future retirees – and they don’t even fully list their debts.”

Northwest Resident on Sat, 11th Jun 2016 12:03 pm 



Economic growth was historically based on exploitation — consumption — of vast natural stores of natural resources.

As long as the BAU machine had plenty of oil, minerals, fisheries, farm land, forests and people to exploit, GDP growth was assured.

But we reached a tipping point — probably around 1970 give or take a few years. The remaining exploitable resources were no longer sufficient to keep GDP growing.

At that point, the only way to maintain a semblance of GDP growth and thereby prevent collapse of the system was to fill in the gap with DEBT.

Since 1970 the amount of debt pumped into the system has grown spectacularly. As it had to in order to prevent collapse of a rapacious economic system whose ravenous hunger for ever more resources had to be satiated.

Since 2007/8, new debt issuance has gone parabolic, exponential! This is merely a reflection of the fact that the scattered resources still available for exploitation has plunged on an equally exponential curve.

The waste and the damage being done to planet earth in these last days of the Age of Oil is catastrophic.

The gap between new debt issued and GDP “growth” enabled by that debt is beginning to look like the open maw of a giant man-eating shark. When those jaws snap together, much if not most of what we know today will be utterly destroyed in a very short time, and the survivors will be left twisting and struggling to survive on a barren landscape. That time, unreal as it may seem, is rapidly approaching.

onlooker on Sat, 11th Jun 2016 12:27 pm 



“Since 2007/8, new debt issuance has gone parabolic, exponential! This is merely a reflection of the fact that the scattered resources still available for exploitation has plunged on an equally exponential curve.” Well said. This reflects the desire to continue BAU in the face of ever more difficulty in attending to the wants and needs of this voracious system. All the economic wizardry and illusions are meant to give the semblance of “normality” in the face of the pressures of limits being reached analogous to walls pressing in on an unfortunate victim. So Debt itself become counter productive and squeezes society. Fitting that the proximate cause of economic collapse shall be economic machinations via debt.

Northwest Resident on Sat, 11th Jun 2016 12:27 pm 



Davy — That is a good article. Pensions are going bust left and right, and those that aren’t busting right now are on the verge. The sound advice to folks wanting to prepare for retirement used to be, put your money into blue chip stocks, bonds and treasuries where you can preserve your nest egg and earn a decent return. ZIRP (and NIRP) killed returns on “safe” investments. Now retirees must consume their nest egg to stay above water, and like everything else these days, that is just a short-term plan that has a definitive end coming on fast. On a global basis, humans have consumed their nest egg. We’re running on fumes, and it is only a question of how much longer those fumes hold out before the bitter end arrives. There are going to be a lot of really surprised and desperate people in the near future — about 7 billion of them!

Northwest Resident on Sat, 11th Jun 2016 12:30 pm 



onlooker — At least you and I and a relative handful of others have the privilege of understanding what is happening. Most people will fall victim to oncoming events without ever knowing what hit them. Yeah — we’re “lucky”!!

GregT on Sat, 11th Jun 2016 1:08 pm 



“The waste and the damage being done to planet earth in these last days of the Age of Oil is catastrophic.”

No smarter than yeast in a petri dish.

Davy on Sat, 11th Jun 2016 1:10 pm 



Yea NR, instead of golf in Phoenix it will be backyard chickens and potatoes. Sounds great to you and I but horrifying to others.

onlooker on Sat, 11th Jun 2016 1:24 pm 



Yeah — we’re “lucky”!! Hopefully, our luck will not run out as we go through the bottleneck of collapse. Nevertheless, I pray for every single living being on this planet

penury on Sat, 11th Jun 2016 1:36 pm 



Davy I think you are being overly optomistic. Chickens do not like temperatures of 125 degrees F potatoes will not do anything at that temperature if you can find seed stock. So instead of “golf in Phoenix” it will be “Hobo Stew” in Alberta.

GregT on Sat, 11th Jun 2016 1:54 pm 



Warba early potatoes are nearly ready to dig up. Finally seeing asparagus shoots, after almost three months! Lost a 15 year old golden plum tree partially due to unseasonably high temperatures though.

All in all the garden is coming along very nicely. Squashes, eggplants, cucumbers, tomatoes, beans, peas, cauliflower, brussels sprouts, carrots, radishes, leaks, onions, lettuces, pak choi, and corn. All growing like weeds. Soil amendment seems to have worked very well. It looks like we’ll have a bumper crop of nuts, figs, berries and fruits as well. No chickens this year, but lot’s of eggs available within walking distance.

If/when temperatures here routinely hit 125º F, our species will likely be pretty much toast. Until then, life is good!

Davy on Sat, 11th Jun 2016 2:09 pm 



Well pen maybe lizards and cactus. We can do what the poor Iraqis do in the heat and that is hang out in the cellar by day and come out at night to enjoy the fresh air. We can adapt until the food is gone

Apneaman on Sat, 11th Jun 2016 2:53 pm 



No worries, your pension is safe in the hands of big financial and their government puppets. History surely tells us that when TSHTF, TPTB always bow out gracefully and never ever lay so much as a finger on the under classes wealth. You’re in good hands with the corporate state.

New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners

“Rather than reining in the massive and risky derivatives casino, the new rules prioritize the payment of banks’ derivatives obligations to each other, ahead of everyone else. That includes not only depositors, public and private, but the pension funds that are the target market for the latest bail-in play, called “bail-inable” bonds.

“Bail in” has been sold as avoiding future government bailouts and eliminating too big to fail (TBTF). But it actually institutionalizes TBTF, since the big banks are kept in business by expropriating the funds of their creditors.
It is a neat solution for bankers and politicians, who don’t want to have to deal with another messy banking crisis and are happy to see it disposed of by statute. But a bail-in could have worse consequences than a bailout for the public. If your taxes go up, you will probably still be able to pay the bills. If your bank account or pension gets wiped out, you could wind up in the street or sharing food with your pets”

https://ellenbrown.com/2014/12/01/new-rules-cyprus-style-bail-ins-to-hit-deposits-and-pensions/

‘Bail-in’: They plan to steal your personal bank deposits and pensions!

“And now, bailouts are not enough. While hiding behind sophistry like declarations of a desire to avoid 2008-style taxpayer bailouts, they plan, as the present crisis hits full-force, to simply seize the private bank deposits of ordinary citizens like yourself—“bail-in”, as opposed to “bail-out”.

The rationale for bail-in goes like this. When a bank fails because its assets (such as mortgage loans) are not enough to cover its liabilities, rather than its being declared bankrupt or bailed out with taxpayer money, the bank will be kept open for business by the intervention of a government-appointed bail-in authority, which takes over the bank and acts to reduce its liabilities. The authority will write down (cancel) some of the value of the bank’s debt. Creditors, such as holders of the bank’s bonds, may have those bonds converted into equity (shares) in the bank. Not only bondholders, but also depositors are classified as “unsecured creditors”. Thus, to reduce the bank’s liabilities the bail-in authority can vaporise the savings of its customers and assets of its bondholders, compensating them with worthless shares in the “resolved” institution.”

http://cecaust.com.au/releases/2016_03_22_Bail_In_PR.html

peakyeast on Sat, 11th Jun 2016 6:18 pm 



@Davy@NR: I concur on the pension scam.

Here in little Denmark the “giant” pensionfunds pushed a guaranteed interest pension savings, some few years ago and many before.

This year they made it impossible for people to have that type. – They forced everybody to convert to a stock based savings.

Which is the same as admitting that the guarantees are not guaranteed anymore. Which is the same as they were lying all along.

Now if they lie about what was their basic product line – then what should we believe?

I say: Nothing, but the earnings of those hired there.

shortonoil on Sat, 11th Jun 2016 7:29 pm 



NIRP is an indication that the time value of money is negative. Some estimates now place 60% of all government bonds in the world in the negative rate category. This simply means that 60% of the world’s governments are no longer paying investors to loan them money. They are charging them for the privilege of having (what is perceived) as a safe haven for their funds.

NIRP represents the destruction of money – an investor’s funds grows constantly smaller. This is a true characteristic of deflation. It results in the eventual shut down of the financial system if it continues for an extended enough period of time. Loan originators refuse to extend credit because it cost them to do so. They are paying the borrower to advance them funds. This has already begun in Europe where some banks are issuing home loans with negative rates.

As we stated more than a year and a half ago the world was entering a deflationary spiral from which there can be no escape. The Etp Model, in conjunction with the energy intensity function indicates that the entropic decay of the petroleum system in 2015 resulted in the destruction of $1.3 trillion. This is essentially the difference between the full life cycle cost of production and what the producers received for their product. It represents the economic activity that did not get powered by petroleum, but instead was used to produce it. These losses will grow with time as the depletion process advances. The Model indicates that by 2030 (at the system’s dead state) those losses would become infinite if the world continued to use petroleum provided by the present system.

It is reasonable to assume that the present system will cease to function in the foreseeable future!

http://www.thehillsgroup.org/

Davy on Sat, 11th Jun 2016 7:41 pm 



“Real Unemployment Rate More Than Double The Official Number, CLSA Finds”
http://www.zerohedge.com/news/2016-06-11/real-unemployment-rate-more-double-official-number-clsa-finds

“According to CLSA economists, who have updated an analysis we first did in the summer of 2010, if the participation rate stayed at the levels before the financial crisis, the unemployment rate would be 9.6%, more than double what it is today.”

Apneaman on Sat, 11th Jun 2016 8:37 pm 



S&P Says Chesapeake Technically in Default Due to Debt Swap

“Chesapeake’s new rating is “SD” for selective default. Analysts sum up:

We view the exchanges as distressed because the investors are receiving less than the original promise and the company is currently holding, in our view, an over leveraged capital structure with potential liquidity issues in the near-term due to total 2017 maturities and a likely put totaling about $1.5 billion.”

http://blogs.barrons.com/incomeinvesting/2016/06/09/sp-says-chesapeake-technically-in-default-due-to-debt-swap/