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Michael T. Klare – Double-Dip Oil Rout

The plunge of global oil prices began in June 2014, when benchmark Brent crude was selling at $114 per barrel. It hit bottom at $46 this January, a near-collapse widely viewed as a major but temporary calamity for the energy industry.  Such low prices were expected to force many high-cost operators, especially American shale oil producers, out of the market, while stoking …

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Tara Lohan – Fossil fuels have become an economic liability—for both consumers and energy companies.

Deborah Lawrence had been watching a once-empty parking lot near Midland-Odessa, Texas, fill up with idled drilling rigs usually at work plumbing for oil in the nearby Permian Basin. In January she noticed 10 rigs, then 17 a few weeks later. As winter turned to spring, the number climbed to 35. That trend has continued across the country. By the …

shale bubble

The Dark Side Of The Shale Bust By Nick Cunningham

The fallout of the collapse in oil prices has a lot of side effects apart from the decline of rig counts and oil flows. Oil production in North Dakota has exploded over the last five years, from negligible levels before 2010 to well over a million barrels per day, making North Dakota the second largest oil producing state in the country. But …

2015: Is It The Year Marcellus Shale Gas Peaked And Then Began Falling As Fast As It Rose? – Nicholas C. Arguimbau

How easy it is to forget there are limits to growth, especially when what you observe is designed to make us forget. The great Marcellus is famous for having increased its production 12-fold in four years to become the US’ largest producing natural gas field, but things have not looked that great lately. The average daily production estimate reported by …

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Big banks flag dangers of financial bubble in oil and commodities – Ambrose Evans-Pritchard

The big global banks have begun to warn clients that the blistering rally in oil and industrial commodities in recent weeks has run far ahead of economic reality, raising the risk of a fresh slump in prices over the summer. Barclays, Morgan Stanley and Deutsche Bank have all issued reports advising investors to tread carefully as energy and base metals …

oil and nuclear

Oil Wars: Fracking, Manipulation, and the Future of Our Energy System – Karl Grossman

Manipulation of the petroleum market is not new. John D. Rockefeller with his Standard Oil Trust mastered it between the end of the 19th and start of the 20th Century. Rockefeller and his trust succeeded in controlling virtually all the oil industry in the United States and also dominating the international market. The Standard Oil Trust fixed prices, set production …

Shale

Oil Market Uncertain As US Shale Boom “Goes Bust”

Oil market is uncertain as the US shale oil output is expected to fall for the first time in four years, and the coming months are likely to see a continuing price war between OPEC producers. Deutsche Bank, Goldman Sachs and HIS are now projecting that US oil production growth will now end. The global oil price rose slightly in …

cost of oil

Putting The Real Story Of Energy And The Economy Together – Gail Tverberg

What is the real story of energy and the economy? We hear two predominant energy stories. One is the story economists tell: The economy can grow forever; energy shortages will have no impact on the economy. We can simply substitute other forms of energy, or do without. Another version of the energy and the economy story is the view of …

petrodollar

The Collapse Of The Petrodollar: Oil Exporters Are Dumping US Assets At A Record Pace – Tyler Durden

Back in November we chronicled the (quiet) death of the Petrodollar, the system that has buttressed USD hegemony for decades by ensuring that oil producers recycled their dollar proceeds into still more USD assets creating a very convenient (if your printing press mints dollars) self-fulfilling prophecy that has effectively underwritten the dollar’s reserve status in the post WWII era. Here’s what we …

bakkenshale77

Bakken Shale Oil Well Output Drops To Lowest Since 2009 – Tyler Durden

In addition to the EIA’s amusing oil price forecast, which as noted previously leaves quite a bit to be desired considering it was a year ago that the EIA completely failed to anticipate the plunge in crude prices, which have collapsed far below its worst case estimate… … there is another more substantial problem with the EIA predicting a consistent increase in …