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Hey, remember all that talk about U.S. energy independence and "Saudi America?" What a farce that was. The shale oil industry has never been able to make a profit, and they are drowning in debt. Now they drastically cutting production.
The U.S. shale oil industry that was supposed to be responsible for our energy independence is in the beginning stages of collapse.
According to the Baker Hughes rig count, since last year U.S. rigs have declined from 701 to 253. https://rigcount.bakerhughes.com/
Remember: energy runs the economy. GDP growth is only achieved by energy production/consumption growth, and oil is the chief energy source today. No oil production growth = no GDP growth. No GDP growth means that this global, debt based pyramid scheme comes crashing down.
Without shale oil, US oil production since 2006 would have remained flat. US shale oil has been responsible for 75% of the global increase in oil production since 2008.
Bailing oit the shale oil industry will only add another layer of bankruptcy to the US government. And even if they do get bailed out, their 50% annual decline rate is not a long-term sustainable business model, unless the Federal Reserve can print more oil reserves, that is.
An oil price ceiling is a dollar floor....an oil price floor...is a dollar...
I’ll help you out...ceiling. Dollar strength means the federal reserve has options for QE. Inevitably, the congress will pass a historic infrastructure bill, and the fed will provide the debt for it. Cheap oil prices will drive the economy forward.
Systems are often self correcting.
Last edited by Thatsright19; 07-23-2020 at 01:04 PM..
Indeed. The prepared remarks of Bill Thomas, CEO of EOG Resources that are to be given to the 19th annual US Shale Summit were leaked yesterday:
"Our industry is collapsing. There will be no more energy soon and that will destroy our economy, government, and way of life. Our people will be fighting in the streets over a can of beans, and I expect cannibalism of dead relatives to become an accepted norm. Everything basically sucks."
Indeed. The prepared remarks of Bill Thomas, CEO of EOG Resources that are to be given to the 19th annual US Shale Summit were leaked yesterday:
"Our industry is collapsing. There will be no more energy soon and that will destroy our economy, government, and way of life. Our people will be fighting in the streets over a can of beans, and I expect cannibalism of dead relatives to become an accepted norm. Everything basically sucks."
Indeed. The prepared remarks of Bill Thomas, CEO of EOG Resources that are to be given to the 19th annual US Shale Summit were leaked yesterday:
"Our industry is collapsing. There will be no more energy soon and that will destroy our economy, government, and way of life. Our people will be fighting in the streets over a can of beans, and I expect cannibalism of dead relatives to become an accepted norm. Everything basically sucks."
It'll be like Mad Max, but without all the gasoline.
Indeed. The prepared remarks of Bill Thomas, CEO of EOG Resources that are to be given to the 19th annual US Shale Summit were leaked yesterday:
"Our industry is collapsing. There will be no more energy soon and that will destroy our economy, government, and way of life. Our people will be fighting in the streets over a can of beans, and I expect cannibalism of dead relatives to become an accepted norm. Everything basically sucks."
There needs to be policy behind US "energy independence". We ended up building an oversupply of gas and oil to export to a world in the midst of a trade war and then Covid. "America First" is pretty ironic and pretty unfocused.
An oil price ceiling is a dollar floor....an oil price floor...is a dollar...
I’ll help you out...ceiling. Dollar strength means the federal reserve has options for QE. Inevitably, the congress will pass a historic infrastructure bill, and the fed will provide the debt for it. Cheap oil prices will drive the economy forward.
Systems are often self correcting.
The Fed could conceivably provide the money to buy the related lagging debt.
Indeed. The prepared remarks of Bill Thomas, CEO of EOG Resources that are to be given to the 19th annual US Shale Summit were leaked yesterday:
"Our industry is collapsing. There will be no more energy soon and that will destroy our economy, government, and way of life. Our people will be fighting in the streets over a can of beans, and I expect cannibalism of dead relatives to become an accepted norm. Everything basically sucks."
Cannibalism, eh?
Well, better buy Heinz or McCormick stock then I suppose. Great Grandpa might need some spicing up.
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