Will Oil Prices Rebound in 2016?

Days ago oil was trading at cyclical lows of below $28/barrel but as of this writing it has rebounded over 14% to close the week above $32. Is this a sign of a bottom or merely a respite on a move to $5/barrel as some are predicting? The … [Read more...]

Are Low Crude Oil Prices a “Boom Or A Curse” For The World Economy?

As the chart to the left shows, in the period from 2002 until 2014 the U.S. moved from 3rd place to 1st place in world crude oil production. This is primarily due to the improvement in "fracking" technology which has led to the massive increase in … [Read more...]

Strippers Suffering From Low Oil Prices

With Prices Below $50, what is a stripper to do? With OPEC breaking down and any kind of coordination among its members on price cuts looking increasingly unlikely, it now appears that oil prices could remain below $50 a barrel for a year or more. … [Read more...]

ISIS, Turkey And Oil – The Bigger Picture: Interview With Pelicourt

As the terrorist attack in Paris sparks worldwide fear of similar reprisals and a bloody shootout and hostage situation in a five-star Mali hotel exacerbates those concerns, global energy security reels under the pressure of unfathomable geopolitics. … [Read more...]

Saudi War Of Attrition With Russia’s Oil Industry

Russia's central bank recently warned about the growing financial risks to the Russian economy from Saudi Arabia encroaching upon its traditional export market for crude oil. Russia sends 70 percent of its oil to Europe, but Saudi Arabia has been … [Read more...]

Bloodbath in the Oil Patch

On September 10th the U.S. Energy Information Administration ( EIA) reported a production decline in the Lower 48—essentially shale production—of 208,000 BOPD. That is a staggeringly enormous number, approximately 10 percent of the estimated global … [Read more...]

OPEC Self-Destruction Thanks To Saudi Oil Strategy?

"If you are the world's leading energy economy, you produce energy, that's what you do." "A government can stay irrational longer than it can stay solvent." "Even in the short term, you're dead, if you commit suicide." The first quote modifies … [Read more...]

More “Funny” Data from the Government

We've been saying for quite some time that we have serious doubts about the numbers coming out of government agencies like the Bureau of Labor Statistics (BLS).  The BLS generates both the generally accepted Inflation Rate and the Unemployment and … [Read more...]

The Dark Side Of The Shale Bust

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 … [Read more...]

The Evolution of Economic Warfare and the Oil Weapon

In the age of derivatives, swaps, and electronic money transfers, a new form of warfare has emerged: financial warfare. Recently, the US has passed sanctions on countries such as Syria, Venezuela, and North Korea , but the majority of energy … [Read more...]