{"id":5684,"date":"2015-02-14T07:45:07","date_gmt":"2015-02-14T12:45:07","guid":{"rendered":"http:\/\/olduvai.ca\/?p=5684"},"modified":"2015-02-14T07:45:07","modified_gmt":"2015-02-14T12:45:07","slug":"never-before-has-drilling-for-oil-collapsed-this-far-this-fast","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=5684","title":{"rendered":"Never before has drilling for oil collapsed this far this fast."},"content":{"rendered":"<h3><a href=\"http:\/\/wolfstreet.com\/2015\/02\/13\/the-fracking-bust-drilling-for-oil-plunged-34-since-october\/\" target=\"_blank\"><strong>Never before has drilling for oil collapsed this far this fast.<\/strong><\/a><\/h3>\n<p>The word \u201cboom\u201d can never be thought of as a stand-alone concept that everyone loves, particularly governments because they get to rake in the big bucks. It\u2019s always attached to its miserable twin that no one wants to see, the \u201cbust.\u201d They come invariably\u00a0in cycles, one after the other. You can\u2019t have one without the other. It\u2019s just a question of time. And in the world of fracking, it\u2019s no different.<\/p>\n<p>The fracking-for-oil boom started in 2005, collapsed by 60% during the Financial Crisis when money ran out, but got going in earnest after the Fed had begun spreading its newly created money around the land. From the trough in May 2009 to its peak in October 2014, rigs drilling for oil soared from 180 to 1,609: multiplied by a factor of 9 in five years! And oil production soared, to reach 9.2 million barrels a day in January.<\/p>\n<p>That\u2019s what real booms look like. They\u2019re fed by limitless low-cost money \u2013\u00a0exuberant investors that buy the riskiest IPOs, junk bonds, leveraged loans, and CLOs usually indirectly without knowing it via their bond funds, stock funds, leveraged-loan funds, by being part of a public pension system that invests in private equity firms that invest in the boom\u2026. You get the idea.<\/p>\n<p>That\u2019s how much of the American shale-oil revolution was funded.<\/p>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Never before has drilling for oil collapsed this far this fast. The word \u201cboom\u201d can never be thought of as a stand-alone concept that everyone loves, particularly governments because they get to rake in the big bucks. It\u2019s always attached to its miserable twin that no one wants to see, the \u201cbust.\u201d They come invariably\u00a0in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[3522,303,312,331,3521,723,3450],"class_list":["post-5684","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-easy-monetary-policy","tag-fed","tag-financial-crisis","tag-fracking","tag-oil-bust","tag-shale-oil","tag-us-oil-rig-count"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5684","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5684"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5684\/revisions"}],"predecessor-version":[{"id":5685,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5684\/revisions\/5685"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5684"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5684"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5684"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}