E&P debt & macro instability
Posted: Mon Nov 17, 2014 10:15 am
Ominous overview of OPEC & US shale producers' debt:
<<http://www.investorvillage.com/groups.a ... d=14377891
Comparisons to 2008 are probably misleading given what we now know about the derivatives mania and the fraudulent repackaging of bubble debt to deceive buyers.
IEA bearishness also loud and clear :
<<Economic development no longer spurs oil demand growth as it once did, especially in the absence of wage gains. China, the top source of incremental oil demand in recent years, has entered a less oil-intensive stage of development, while years of high prices have let innovative technologies unlock untold resources in North America and likely soon elsewhere. The steeper they are, the less sustainable oil price swings tend to be. But a return to previous price highs may not be a close prospect, as it is increasingly clear that we have begun a new chapter in the history of the oil markets.>>
Read more: http://www.businessinsider.com/why-oil- ... z3JL8LXLKP
Ed Yardeni has a chart up of the rise in US crude production since the 2008 crash: the line is nearly vertical, w/ many too many producers trying to cash in at once. <<http://www.businessinsider.com/bubble-i ... ch-2014-11
The OPEC meeting should be dramatic.
<<http://www.investorvillage.com/groups.a ... d=14377891
Comparisons to 2008 are probably misleading given what we now know about the derivatives mania and the fraudulent repackaging of bubble debt to deceive buyers.
IEA bearishness also loud and clear :
<<Economic development no longer spurs oil demand growth as it once did, especially in the absence of wage gains. China, the top source of incremental oil demand in recent years, has entered a less oil-intensive stage of development, while years of high prices have let innovative technologies unlock untold resources in North America and likely soon elsewhere. The steeper they are, the less sustainable oil price swings tend to be. But a return to previous price highs may not be a close prospect, as it is increasingly clear that we have begun a new chapter in the history of the oil markets.>>
Read more: http://www.businessinsider.com/why-oil- ... z3JL8LXLKP
Ed Yardeni has a chart up of the rise in US crude production since the 2008 crash: the line is nearly vertical, w/ many too many producers trying to cash in at once. <<http://www.businessinsider.com/bubble-i ... ch-2014-11
The OPEC meeting should be dramatic.