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Page added on February 17, 2015

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Get Ready for $10 Oil

Consumption

At about $50 a barrel, crude oil prices are down by more than half from their June 2014 peak of $107. They may fall more, perhaps even as low as $10 to $20. Here’s why.

U.S. economic growth has averaged 2.3 percent a year since the recovery started in mid-2009. That’s about half the rate you might expect in a rebound from the deepest recession since the 1930s. Meanwhile, growth in China is slowing, is minimal in the euro zone and is negative in Japan. Throw in the large increase in U.S. vehicle gas mileage and other conservation measures and it’s clear why global oil demand is weak and might even decline.

At the same time, output is climbing, thanks in large part to increased U.S. production from hydraulic fracking and horizontal drilling. U.S. output rose by 15 percent in the 12 months through November from a year earlier, based on the latest data, while imports declined 4 percent.

Something else figures in the mix: The eroding power of the OPEC cartel. Like all cartels, the Organization of Petroleum Exporting Countries is designed to ensure stable and above-market crude prices. But those high prices encourage cheating, as cartel members exceed their quotas. For the cartel to function, its leader — in this case, Saudi Arabia — must accommodate the cheaters by cutting its own output to keep prices from falling. But the Saudis have seen their past cutbacks result in market-share losses.

So the Saudis, backed by other Persian Gulf oil producers with sizable financial resources — Kuwait, Qatar and the United Arab Emirates — embarked on a game of chicken with the cheaters. On Nov. 27, OPEC said that it wouldn’t cut output, sending oil prices off a cliff. The Saudis figure they can withstand low prices for longer than their financially weaker competitors, who will have to cut production first as pumping becomes uneconomical.

What is the price at which major producers chicken out and slash output? Whatever that price is, it is much lower than the $125 a barrel Venezuela needs to support its mismanaged economy. The same goes for Ecuador, Algeria, Nigeria, Iraq, Iran and Angola.

Saudi Arabia requires a price of more than $90 to fund its budget. But it has $726 billion in foreign currency reserves and is betting it can survive for two years with prices of less than $40 a barrel.

Furthermore, the price when producers chicken out isn’t necessarily the average cost of production, which for 80 percent of new U.S. shale oil production this year will be $50 to $69 a barrel, according to Daniel Yergin of energy consultant IHS Cambridge Energy Research Associates. Instead, the chicken-out point is the marginal cost of production, or the additional costs after the wells are drilled and the pipes are laid. Another way to think of it: It’s the price at which cash flow for an additional barrel falls to zero.

Last month, Wood Mackenzie, an energy research organization, found that of 2,222 oil fields surveyed worldwide, only 1.6 percent would have negative cash flow at $40 a barrel. That suggests there won’t be a lot of chickening out at $40. Keep in mind that the marginal cost for efficient U.S. shale-oil producers is about $10 to $20 a barrel in the Permian Basin in Texas and about the same for oil produced in the Persian Gulf.

Also consider the conundrum financially troubled countries such as Russia and Venezuela find themselves in: They desperately need the revenue from oil exports to service foreign debts and fund imports. Yet, the lower the price, the more oil they need to produce and export to earn the same number of dollars, the currency used to price and trade oil.

With new discoveries, stability in parts of the Middle East and increasing drilling efficiency, global oil output will no doubt rise in the next several years, adding to pressure on prices. U.S. crude oil production is forecast to rise by 300,000 barrels a day during the next year from 9.1 million now. Sure, the drilling rig count is falling, but it’s the inefficient rigs that are being idled, not the horizontal rigs that are the backbone of the fracking industry. Consider also Iraq’s recent deal with the Kurds, meaning that another 550,000 barrels a day will enter the market.

While supply climbs, demand is weakening. OPEC forecasts demand for its oil at a 14-year low of 28.2 million barrels a day in 2017, 600,000 less than its forecast a year ago and down from current output of 30.7 million. It also cut its 2015 demand forecast to a 12-year low of 29.12 million barrels.

Meanwhile, the International Energy Agency reduced its 2015 global demand forecast for the fourth time in 12 months by 230,000 barrels a day to 93.3 million and sees supply exceeding demand this year by 400,000 barrels a day.

Although the 40 percent decline in U.S. gasoline prices since April 2014 has led consumers to buy more gas-guzzling SUVs and pick-up trucks, consumers during the past few years have bought the most efficient blend of cars and trucks ever. At the same time, slowing growth in China and the shift away from energy-intensive manufactured exports and infrastructure to consumer services is depressing oil demand. China accounted for two-thirds of the growth in demand for oil in the past decade.

So look for more big declines in crude oil and related energy prices. My next column will cover the winners and losers from low oil prices

bloomberg



54 Comments on "Get Ready for $10 Oil"

  1. Dredd on Tue, 17th Feb 2015 5:05 am 

    Whoopee!

    Cheap poison!

    Whoopee!

    Planet poison … to die for!

    Whoopee!

  2. Go Speed Racer. on Tue, 17th Feb 2015 5:17 am 

    Get ready for oil at six bucks a barrel. Dust off the blueprints for 1970 Lincoln town car, time to start building them again. No more Prius, its good times again. Trip to the beach with a 12 transistor radio playing Beach Boys. Just landed on the moon. Them dumb liberal peak oilers, they sure is stupid now that oil is six bucks a barrel and I got a 460 under the hood.

  3. forbin on Tue, 17th Feb 2015 6:26 am 

    “…. according to Daniel Yergin of energy consultant IHS Cambridge Energy Research Associates…. ”

    ah I see now

    Forbin

  4. Speculawyer on Tue, 17th Feb 2015 6:52 am 

    Yeah, sure. Don’t worry about the fact that it seems Libya will probably go completely off line now, drilling in the Bakken is having a screeching slow-down, pretty much all plans for arctic oil are on hold, and tar sands investment is at a standstill.

  5. Davy on Tue, 17th Feb 2015 6:58 am 

    Amazing the fantasies of the digital mind. There is a real and physical reality for the economic and oil complex that cannot be breached even by the digital. This is especially true currently because the tools of the central banks are in diminishing returns and no longer effective as they once were. The oil complex has hit a glass ceiling of affordable oil and is now witnessing a demand destruction decline causing a supply destroying glut. The growth rate of all liquids but especially the best liquids are in decline. The POD & ETP oil are clearly showing a descent. Speculation in the oil complex has been permanently damaged by the tapper of the Feds QE. Rates are being jawboned to rise. The dollar is moving out of its global goldilocks range. The bond bubble is twitching.

    Yes lower oil prices are likely and higher prices are likely but in an underlying situation of supply and demand destruction. Both real demand and supply are long term trends. The digital is short term. Who knows what the speculative side of oil and the financial system may conjure up but the real and physical in both oil demand and supply is relentlessly a longer term phenomenon with POD & ETP of oil and financial instabilities of debt and rate repression.

    These realities can be masked as good both with bad news and good news by the speculators. What could be more unreality than good is good and bad is good? This point to agenda’s and their definition as selective use of the facts to paint a picture of reality that is a message of an individual or larger concern. Is not MSM completely bought off? Is not the US political message also bought off? Is not the global system built upon the same to a lesser extent? In that type of environment we can see digital moves that do not reflect reality but reality always wins. These projected oil prices are likely in a bumpy descent and will be reflected in a gyration of price influenced by demand and supply destruction and the disconnect of the digital and real economy.

  6. rockman on Tue, 17th Feb 2015 7:11 am 

    “Throw in the large increase in U.S. vehicle gas mileage…” Once again someone ignorant of the facts or a spinmeister. The fuel economy of NEW CARS has increased. The fuel economy of the ROLLING FLEET of US vehicles changes just a fraction of 1% per year as a result of most hanging on to their vehicles 10+ years. And now with lower fuel prices there’s even less incentive to switch to more efficient ICE’s let alone alt vehicles.

    “…and other conservation measures”: Some conservation and a good bit of demand destruction. DD that will probably decrease thanks to lower oil prices.

    “China is slowing…”: No…China is growing at a very significant rate. Their Rate of growth has slowed…not their growth.

    “…output is climbing, thanks in large part to increased U.S. production from hydraulic fracking and horizontal drilling”. And again a complete lack of understanding time lags. The production increases from US shales being noted today is from wells that were drilled months ago. It can take up to 6+ months before a well begins producing after it’s drilled and then another couple of months before that data becomes public knowledge. Currently there have been thousands of Eagle Ford Shales wells cancelled that were scheduled for 2015. Hundreds of drill rigs are currently being shut down. Future production from the unconventional reservoirs will be directly proportional to the number of active rigs. A number that could easily drop 50% from the height of shale drilling…or more.

    “Instead, the chicken-out point is the marginal cost of production, or the additional costs after the wells are drilled and the pipes are laid. Another way to think of it: It’s the price at which cash flow for an additional barrel falls to zero.” Utterly insane comment. The Rockman can’t believe the writer is that ignorant so it must be an intentional lie. An extremely small number of US producing wells will have zero cash flow at the current price. Production costs (LOE: Lease Operating Expense) varies but is typically less than $20/bbl. Sometimes significantly less: the Rockman has a 400 bopd well that would still have positive cash flow if oil were selling for $5/bbl.

    “…and sees supply exceeding demand”. Supply can never exceed demand…they are always balanced. But production capacity can exceed demand. And, as we all should know, demand isn’t the amount of oil the global economy wants but what it can afford to buy. Production capacity has exceeded demand for a long time. When oil was selling for $100+/bbl there was still unused production capability. Today the production capability has changed little in the last 6 months. But with respect to the US shale plays that production capability with decrease as the rig count decrease both from the high decline rate of existing wells and a significant decrease in the number of new wells drilled.

    Time will tell how much the lower price increases demand…the amount of oil the global economy can buy at the current price. But the Rockman isn’t necessarily disagreeing with the $20/bbl possibility. He just didn’t like the pile of bullsh*t used to rationalize that prediction. The Rockman knows ALMOST everything there is to know about the oil biz. Except, of course, the future price of oil.

  7. westexas on Tue, 17th Feb 2015 7:33 am 

    Excerpt from the March, 1999 Economist Magazine cover story on oil prices:

    “Consumers everywhere will rejoice at the prospect of cheap, plentiful oil for the foreseeable future.

    “Policymakers who remember the pain of responding to oil shocks in 1973 and in 1979-80 will also be pleased. But the oilmen’s musings will not be popular with their fellows. For if oil prices remain around $10, every oil firm will have to slash its exploration budget. Few investments outside the Middle East will any longer make sense.

    “Cheap oil will also mean that most oil-producing countries, many of them run by benighted governments that are already flirting with financial collapse, are likely to see their economies deteriorate further. And it might also encourage more emissions of carbon dioxide at just the moment when the world is trying to do something about global warming.

    “Yet here is a thought: $10 might actually be too optimistic. We may be heading for $5.”

  8. westexas on Tue, 17th Feb 2015 7:37 am 

    The annual rate of increase in annual Brent crude oil prices from 1998 to 2013 was 14%/year, and annual Brent prices rose at 34%/year from 1998 to 1999 (the Economist article was written in the first quarter of 1999).

  9. Davy on Tue, 17th Feb 2015 8:19 am 

    Rock “China is slowing…”: No…China is growing at a very significant rate. Their Rate of growth has slowed…not their growth.

    Rock the important point to realize about China is the amount of growth reductions, the masking of the true decline of growth, and the underlying bad debt of that growth and previous growth. From your point of view I agree China is still a strong source of oil growth. Significant increases in China’s vehicle stock is still occurring but the amount of the slowdown is significant and enough to warrant a mention as a significant source of demand destruction. The fact is China is suicide bomber equivalent for the global economy. China is extremely important for investment and commodity consumption especially in the developing world and commodity producers like Brazil and Australia. This is slowing at a time when the rest of the global economy is weak.

  10. keith on Tue, 17th Feb 2015 8:39 am 

    Automobile companies are pushing hard advertizing to buy their car. I see, hear lots of ads from ford, GM, etc.

  11. Dredd on Tue, 17th Feb 2015 8:50 am 

    “So look for more big declines in crude oil and related energy prices.” – Bloomberg

    One has to wonder if the increased beating of the war drums by media owned by war profiteering corps will have any impact on the price.

    Wars at least stir the pot, so perhaps a mid-east war would give new meaning to “supply” and to any perceived “glut”.

    Pumping the oil out is one thing, but putting it on a tanker then getting it from there to the purchaser, when a shooting war is going on, is another.

    When war enters the economic calculus unintended consequences are likely to result.

  12. Makati1 on Tue, 17th Feb 2015 8:59 am 

    Any savings by the consumer on the price of gasoline will go to pay down their debt, not to increase GDP.

  13. westexas on Tue, 17th Feb 2015 9:47 am 

    Discoveries of new oil and gas reserves drop to 20-year low

    http://peakoil.com/geology/discoveries-of-new-oil-and-gas-reserves-drop-to-20-year-low

  14. shortonoil on Tue, 17th Feb 2015 9:50 am 

    This is a re-post of yesterday. No one can pump oil for less than the lifting costs. So why publish such nonsense???????? Even for an industry pimp like Forbes this is extreme!

    The recent surge in oil prices is just a “head-fake,” and oil as cheap as $20 a barrel may soon be on the way, Citigroup said in a report on Monday as it lowered its forecast for crude.

    Lifting costs are extremely sensitive to water cut. A 98% water cut means that 45 barrels of water must be pumped out of a well to retrieve one barrel of oil. More than half of US conventional production now has a water cut greater than 90%.

    This is not only the situation in the US, it is true throughout the world. Lukoil is one of the few world producers that publishes a full set of production statistics, including water cut:

    http://www.lukoil.com/materials/doc/DataBook/DBP/2011/part_03.pdf

    Most of the world’s extractable conventional crude deposits lies in the 3500 to 4500 foot range. The lifting cost for a 4000 foot well with a 90% water cut is about $20/ barrel. If prices fell to $20/barrel it would shut in at least half of the world’s production. That is not likely to happen this year!

    Citi, Goldman, and others have been bantering around with the claim of $20 oil recently. Either they are very poor engineers, or they are prepping the market for some financial agenda of their own. Considering the sources it is likely to be both.

    http://www.thehillsgroup.org/

    At the same time, output is climbing, thanks in large part to increased U.S. production from hydraulic fracking and horizontal drilling. U.S. output rose by 15 percent in the 12 months through November from a year earlier, based on the latest data, while imports declined 4 percent.

    According to EIA, and Goldman released data, between 2008, and 2013 the shale industry produce 3.21 Gboe while accumulating $960 billion in debt. That is a debt formation of $299/boe produced, or more than 3 times what the producers received for their production. Obviously, shale is not even remotely economically viable, and yet in every article there is a reference to the incredible production gains it has experienced. To believe that this can continue one would literally have to be an idiot, and yet the industry continues is mantra!

  15. marmico on Tue, 17th Feb 2015 9:55 am 

    The annual rate of increase in annual Brent crude oil prices from 1998 to 2013 was 14%/year…

    When are you going to put the price of oil in context?

    In the way way back time machine when Kennedy beat Nixon in the presidential election, gasoline was 4.76% of the consumer spending budget. In the way back time machine of 1998, gasoline was 2.25% of the consumer budget. In 2014, it was 3.33%.

    Gasoline and health care were about equal in the consumer budget in 1960. Now health care costs 5X as much as gasoline. That’s context.

  16. Plantagenet on Tue, 17th Feb 2015 9:56 am 

    If the oil glut causes oil to drop to $10 bbl, it will happen in a transitory sell off

  17. BobInget on Tue, 17th Feb 2015 10:14 am 

    1) Before we have peace in the Mideast or Africa equatable natural asset distributions must be resolved.

    2) Islam needs to get it’s house in order, deciding who are true friends and enemies.
    As long as radical know nothings advantage themselves of decades of Sunnis/Shiite disagreements, there will be constant poverty, superstition, ignorance and fighting over the scraps of minerals wealth, long after colonial

    3) Can you can envision either one or two happening in your lifetime?

    BTW is that $10 a gallon, European gasoline price,
    or $10 a barrel, a desperate cry for help from
    hedge funds who went short?

  18. Apneaman on Tue, 17th Feb 2015 10:32 am 

    When are you going to put wages in the same context? How bout looking at everything in that context. What you will find is it’s a different world and you can’t shoehorn your wishes into this one no matter how many ways you torture the data…. it’s over.

  19. BobInget on Tue, 17th Feb 2015 10:52 am 

    Oh, I forgot to ask.
    What Do We Do to Get Ready? (for 10 buck)

    Because Venezuela, the one place on the planet where gasoline is under a (US) penny a gallon,
    is not doing well.

    I

  20. Plantagenet on Tue, 17th Feb 2015 10:56 am 

    Good post Marmico.

  21. shortonoil on Tue, 17th Feb 2015 10:59 am 

    When are you going to put the price of oil in context?

    In 1998 one $ would have bought 11,982 BTU, in 2013 it would have bought 6,178 BTU. A decline of 48.4%.

    http://www.thehillsgroup.org/depletion2_008.htm

    Perhaps you should learn to put reality in context with the fairytale numbers that have been conjured up for the credulous populous!

  22. Northwest Resident on Tue, 17th Feb 2015 11:15 am 

    “Good post Marmico.”

    Because a barrel of oil is just like an ounce of gold — a known quantity — every barrel of “oil” produced is exactly equal to every other barrel of oil produced throughout history. Right? WRONG!

    And because the amount of energy needed to extract a barrel of whatever they call “oil” today is exactly the same as the amount of energy required to extract every other barrel of oil throughout history. Right? WRONG!!

    Stupid joke: What happens when the village idiot meets the local troll? Answer: Mutual compliments and total agreement. A real clown act.

  23. Davy on Tue, 17th Feb 2015 11:40 am 

    I have been around for some years now so when Marm tries to blow the historical comparisons crap up my toot I laugh. His historical comparisons with these feel good percentages of the past and the present are just his titillations of all is well. These comparisons in no way hold up to my experiences of what we have today and what we had then. He is showing small percentage differences that have little meaning in a historical context. Life cannot be compared like that Marm.

    Most here know the reality of how much more difficult life is today then even a few years ago. Life is a struggle and it is going in the wrong direction. People feel insecure and afraid of what is ahead. Marm wants us to believe that modern life is fine per the massaged Freddy numbers put in historical comparison. It is funny how he lives by these numbers like they are gospel.

    Marm, get a life that has a relationship with reality. Quit trying to prove your corn agenda and admit there has been tradeoffs of good and bad. That said it is clear with most here the direction is not towards human progress. We see everywhere we look storm clouds unless you are a 1%er or a 1%er wanna-be.

  24. msnfanboy on Tue, 17th Feb 2015 11:56 am 

    Stupid Joke: LOL

    Most important comment here:

    In 1998 one $ would have bought 11,982 BTU, in 2013 it would have bought 6,178 BTU. A decline of 48.4%.

  25. Plantagenet on Tue, 17th Feb 2015 11:57 am 

    Hi Nordent

    Your suggestion that “every barrel of oil produced is exactly equivalent to every other barrel of oil produced through history” is incredibly dumb, as is your suggestion that anyone else would hold such a dumb view except you.

    There are several well known systems for grading and evaluating oil precisely because it is so variable in weight, chemistry, and energy content.

    Please educate yourself on the facts about oil before posting any more such nonsense.

    Cheers!

  26. Apneaman on Tue, 17th Feb 2015 12:12 pm 

    Fuck off Plant you tard. I’m starting to think you have a real disorder or something.

  27. Dredd on Tue, 17th Feb 2015 12:22 pm 

    Does Oil-Qaeda sense an approaching “storm” (besides the more distant mob with pitch forks)?

    Japan now has more electric car charging points than gas stations

  28. Davy on Tue, 17th Feb 2015 12:28 pm 

    Planter that was NR’s point please read the comment again he was being sarcastic with the Marm.

  29. Perk Earl on Tue, 17th Feb 2015 12:45 pm 

    “Your suggestion that “every barrel of oil produced is exactly equivalent to every other barrel of oil produced…”

    You need to finish what NR wrote; he ends that bit by writing, no! In other words a barrel of oil is not the same as any other barrel of oil.

    Which is interesting because just yesterday Rockman was admonishing me for bringing up what I thought would have been an interesting debate, i.e. what is and what isn’t conventional oil. He wrote, oil is oil, there is no difference.

    That really blew my mind because I’d always thought there were different grades, some have higher sulphur content, at different depths and viscosities, require different methods to get to, etc. But no the master of the oil fields claims oil is just oil. That it fits into two categories; oil seeping through porous rock (conventional) and oil from rock that must be fractured (non-conventional). No word yet on how tar sands in Canada or Venezuela fits into either of those two categories.

    I can’t imagine a diamond merchant claiming diamonds are just diamonds, when considering clarity, carats, flaws, color etc. but it seems we have a bonafide argument when it comes to oil.

    I’m with NR and think there is a big difference between different oil fields and oil sources, that oil is not just oil (if one considers various factors).

  30. shortonoil on Tue, 17th Feb 2015 1:07 pm 

    I’m with NR and think there is a big difference between different oil fields and oil sources, that oil is not just oil (if one considers various factors).

    Like these:

    http://www.nrcan.gc.ca/sites/www.nrcan.gc.ca/files/energy/images/eneene/sources/petpet/images/refraf1-lrgr-eng.png

  31. Perk Earl on Tue, 17th Feb 2015 1:21 pm 

    Yeah, great comparative chart, short.

  32. notsure on Tue, 17th Feb 2015 1:42 pm 

    $10 oil. What I find interesting is that water would be more expensive than oil. A liter of water at a gas station costs me $1.79 or around $6.5 per gallon.

  33. Plantagenet on Tue, 17th Feb 2015 2:02 pm 

    Hi Apneaman

    Your potty mouth is overflowing again. Please flush before any more spills out.

  34. Plantagenet on Tue, 17th Feb 2015 2:10 pm 

    @PerkOil

    Of course oil from different sources is different. I made that point in my post as well.

    No one here has ever said all oil is the same except Nordent. Even if Nordent was being facetious when he made that post, as you suggest, it is still a really dumb idea.

    Cheers!

  35. marmico on Tue, 17th Feb 2015 3:01 pm 

    When are you going to put wages in the same context?

    Like right now retard.

  36. BobInget on Tue, 17th Feb 2015 3:02 pm 

    I’ve read every post. So far, no one has answered the question: How does one prepare for $10
    (a barrel, not gallon) oil?

    Maybe, it’s on a ‘need to know’ basis.

  37. Nigel on Tue, 17th Feb 2015 3:24 pm 

    Since there are so many variables involved it’s just a guessing game.

    I’ll go first, it smells like a bottom!

  38. Northwest Resident on Tue, 17th Feb 2015 3:33 pm 

    “How does one prepare for $10?”

    The same way that Queequeg prepared to meet the Great White Whale?

    $10 per barrel oil is directly equivalent to total chaos and mayhem, a complete and total breakdown of civilization. Basically, worst case scenario. Exactly where we seem to be headed.

  39. Perk Earl on Tue, 17th Feb 2015 3:38 pm 

    You get ready for $10 a barrel by getting solar, an EV or at least a hybrid, building a huge food & fresh water cache, buckets of silver coins, boxes of seeds, lots of hand tools, house supplies like soap etc, first aid kit with how to book on sewing stiches, antibiotics and dental tools, weapons, bullets, bullet proof body protection, chocolate, alcohol, a woman, you know the usual vices and then some to provide entertainment once shtf at $10 dollars a barrel consumer affordability in a few years time. Load up now before the oil age hits a big ice burg (economic dislocation).

  40. Nigel on Tue, 17th Feb 2015 3:41 pm 

    I’m more of an optimist, $10 equates to world peace and horsedrawn transport…

  41. ohanian on Tue, 17th Feb 2015 3:45 pm 

    Time to buy a hummer!

  42. Plantagenet on Tue, 17th Feb 2015 3:49 pm 

    You can get ready for $10 oil by going short in the stock market on Exxon, Chevron, BP, etc.

  43. Rodster on Tue, 17th Feb 2015 3:50 pm 

    “How does one prepare for $10”

    1) Food
    2) Water
    3) Ammo

    You don’t want $10 a barrel of oil. Countries, go bankrupt, get overthrown, total chaos. It’s bad when every major oil exporter funds their Gov’t by selling high priced oil.

  44. Nigel on Tue, 17th Feb 2015 3:51 pm 

    I’m guessing Brent at $150 by the end of the year…

  45. Apneaman on Tue, 17th Feb 2015 3:54 pm 

    There you go with your .gov charts again you little fucking cock a roach.

  46. Nigel on Tue, 17th Feb 2015 4:02 pm 

    ?

    Breathe through your nose, your sats are dropping again…

  47. Northwest Resident on Tue, 17th Feb 2015 5:08 pm 

    Calling all sheep! Calling all sheep!

    maaaaaaaaamarmico

    Wall Street’s Calling The Sheep: Buy The Dip Now, Join The Slaughter Later

    http://davidstockmanscontracorner.com/wall-streets-calling-the-sheep-buy-the-dip-now-join-the-slaughter-later/

  48. GregT on Tue, 17th Feb 2015 5:38 pm 

    “I’m guessing Brent at $150 by the end of the year…”

    I hope you’re wrong, I still have a lot of work to do before the collapse.

  49. Harquebus on Tue, 17th Feb 2015 6:07 pm 

    All fiat currencies are intrinsically worthless. Only a fool would trade valuable energy for them. Gold and silver are the only real money and who has been hoarding gold? A: Russia and China.
    The U.S. is going to be in deep poo poo when the world rejects it’s worthless U.$.

  50. synapsid on Tue, 17th Feb 2015 8:11 pm 

    Perk Erl,

    The “oil is just oil” is in the context of conventional and unconventional. There are conventional and unconventional reservoirs, not conventional and unconventional oils–oil is just oil, in that context.

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