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Tag Archives: oil price collapse
5 Charts Which Show That The Next Economic Crash Is Dead Ahead
5 Charts Which Show That The Next Economic Crash Is Dead Ahead When an economic crisis is coming, there are usually certain indicators that appear in advance. For example, commodity prices usually start to plunge before a recession begins. And as you can see from the Bloomberg Commodity Indexwhich you can find right here, this […]
Low Oil Prices Not Enough To Kill Off Oil Sands, Yet
Low Oil Prices Not Enough To Kill Off Oil Sands, Yet On Friday I visited the University of Alberta in Edmonton, where falling oil prices have brought a record provincial budget deficit despite aggressive tax increases and spending cuts. Here I pass along some of what I learned about how the plunge in oil prices is affecting […]
Economists Fear Oil-Price ‘Contagion’ Has Hit Canada’s Economy
Economists Fear Oil-Price ‘Contagion’ Has Hit Canada’s Economy ‘Unbelievable’ decline in oil drilling could impact banks, construction Cost-cutting budgets in Alberta, Quebec will reduce economic growth Analysts completely divided on where oil prices are headed now Following some nasty recent surprises in Canada’s economic data, analysts are starting to sound more pessimistic about the country’s […]
Who Benefits Most From Cheap Oil?
Who Benefits Most From Cheap Oil? We are living in a world obsessed with oil and its price movements. Some time back, when all the trade pundits were predicting a stable 100$ benchmark, the prices fell… and how! The current fall in the oil price has been particularly harsh and excruciating for some of the […]
Planet of the Space Bats
Planet of the Space Bats As my regular readers know, I’ve been talking for quite a while now here about the speculative bubble that’s built up around the fracking phenomenon, and the catastrophic bust that’s guaranteed to follow so vast and delusional a boom. Over the six months or so, I’ve noted the arrival of […]
Goldilocks Is Dead
Goldilocks Is Dead Five years ago I wrote an article for Reuters titled “Goldilocks and the Three Fuels.” In it, I discussed what I call the Goldilocks price zone for oil, natural gas, and coal, a zone in which prices are “just right”—high enough to reward producers but low enough to entice consumers. Ever since […]
T. Boone Pickens Points The Finger At U.S Shale
T. Boone Pickens Points The Finger At U.S Shale So what do you do when you believe devoutly in hydraulic fracking but also understand that too much fracking is responsible for an oil glut that’s hammering the price of oil like a pile-driver? If you’re legendary Texas oil billionaire T. Boone Pickens, you call for […]
The Oil Price Crash and Economic Slow Down in China
The Oil Price Crash and Economic Slow Down in China Two of the factors in the oil price crash are well constrained: 1) oversupply of expensive light tight oil (LTO) in North America and 2) the decision of OPEC to not cut production. The third possible factor of weak global demand is not so easy […]
The Canadian Housing Bubble Has Begun To Burst
The Canadian Housing Bubble Has Begun To Burst Don’t look now but slumping crude prices are hitting the Canadian housing market like a freight train. Energy accounts for 10% of Canadian GDP and around 25% of exports and the swift fall in oil prices is having a profound effect in the nation’s oil producing regions. Take […]
The Shale Debt Redux
The Shale Debt Redux Shale debt, falling prices and slack demand has tight oil producers in trouble. And yet, there is still burgeoning production. Why? Well, we’ve seen this before. It’s the shale debt redux. Operators did it a few years ago in natural gas and prices have yet to recover. Unfortunately cheap money in […]
Wall Street Losing Millions From Bad Energy Loans
Wall Street Losing Millions From Bad Energy Loans Oil companies continue to get burned by low oil prices, but the pain is bleeding over into the financial industry. Major banks are suffering huge losses from both directly backing some struggling oil companies, but also from buying high-yield debt that is now going sour. The Wall […]
Wall Street Banks Hit by Oil & Gas Defaults, Bankruptcies
Wall Street Banks Hit by Oil & Gas Defaults, Bankruptcies The fracking boom has been cash-flow negative for oil and gas drillers from the very beginning. The steep decline rates of fracked wells force producers to drill more wells just to keep production and revenues flat, even at high oil prices. They fund this drilling […]
The Perfect Storm For Oil Hits In Two Months: US Crude Production To Soar Just As Storage Runs Out
The Perfect Storm For Oil Hits In Two Months: US Crude Production To Soar Just As Storage Runs Out Less than two weeks ago we warned that based on the current oil production trend, the US may run out of storage for crude as soon as June. This is what we said back in early March when the BTFDers […]
Global Shale Revolution On Hold
Global Shale Revolution On Hold Along with the rest of the energy world, we have been closely tracking rig counts (now down 40 percent from last fall) and other data to try to determine where the oil markets are heading. This week, the Energy Information Administration reported that production is finally set to decline in […]
Just as Global Oil Glut Deepens, China Cuts Oil Imports
Just as Global Oil Glut Deepens, China Cuts Oil Imports “We don’t want to lose our share in the market,” Kuwait Oil Minister Ali al-Omair said on Thursday. OPEC had to maintain production despite the plunge in price since last summer, he said, underscoring Saudi Arabia’s position. OPEC would not cut production to goose prices. […]
