"We should also keep our eye on the political system which retains power regardless of which party or politico is in office: the Deep State.The Deep State exists to maintain the essential infrastructure of global power and domestic stability ... From this point of view, a rapid decline in U.S. oil production and a corresponding increase in oil imports is a positive development for this basic reason: if cheap oil is becoming increasingly scarce, then it makes all the sense in the world to burn everyone else's cheap oil and keep our reserves in the ground for later use, when all the cheap oil is gone ... Since cheap oil will eventually become scarce for all the reasons listed here and elsewhere many times--depletion of easy-to-pump reserves, geopolitical instability, rising domestic consumption in oil-exporting nations and a contraction in capital available to replace declining production--it makes excellent sense to consume all the oil anyone is willing to sell for $40-$50/barrel and retain one's own reserves for the time when $100/barrel has become "cheap" ... It's always wise to remember the elected government is the ant riding on the Deep State elephant, grandly declaring it guides the great beast."

Zum Artikel von Charles Hugh Smith, erschienen auf oftwominds (12. Januar 2015) »


"I'm sure we're never going to see $100 anymore. I said a year ago, the price of oil above $100 is artificial ... Plus, remember there is an agenda here also. Although Saudi Arabia and OPEC countries did not engineer the reduction in the price of oil, there's a positive side effect, whereby at a certain price, we will see how many shale oil production companies run out of business. So although we are caught off guard by this, we are capitalizing on this matter whereby we'll live with $50 temporarily, to see how much new supply there will be, because this will render many new projects economically unfeasible ... But I'll tell you Saudi Arabia and Russia are in bed together here. And both are being hurt simultaneously. And there's no political conspiracy whatsoever against Russia. Because we are shooting ourselves in the foot if we do that ... No one knows for sure what price is the breaking point for shale. Wells have a higher production cost. And very clearly these will run out of business, or at least not be economical. At $50, will it still be economically feasible?"

Zum Interview mit Prince Alwaleed bin Talal, erschienen auf USA Today (11. Januar 2015) »


"I don't think [Saudi Arabia] can produce much more oil than 10 million barrels a day. Now they pound on their chest, say they can do another 2 to 2,5 million barrels. I don't think that's true. If you look at the record, they have been at 10 million I think 3 times and it was not kept at that level very long. So I think they are doing all they can do. Listen, the world needed us, the world needed the US addition to the oil production. If you go back to 2005 when I said peak oil is here, and if you go to 2005 and stretch it out for OPEC, it's flat. I mean we did peak in 2005. Now where would we be today without the United States? You would be looking at $150, $175 oil ... You need to go back and look at oil production without the United States. In 2005, you peaked. Go back and look at it. If it hadn't been for the United States shale boom ... If you look at 2005, you're finished as far as the rest of the world. What saved you was the shale. It was American industry [that] saved the world one more time."


"So with great delight we present the latest blowback from Obama's 'brilliant' strategy to cripple Putin: in addition to the default wave about to crush America's own shale industry, America's biggest foreign ally and military partner when it comes to 'ideologically pure missions of liberation' - the UK, and specifically its North Sea oil industry which according to the BBC is in a 'crisis' and according to Robin Allan, chairman of the independent explorers' association Brindex, the industry was close to collapse'. The story is the same as in the shale patch, only in the far colder and stormier North Sea: 'Almost no new projects in the North Sea are profitable with oil below $60 a barrel', he claims. 'Everyone is retreating'. 'It's almost impossible to make money at these oil prices', Mr Allan, who is a director of Premier Oil in addition to chairing Brindex, told the BBC. 'It's a huge crisis. This has happened before, and the industry adapts, but the adaptation is one of slashing people, slashing projects and reducing costs wherever possible, and that's painful for our staff, painful for companies and painful for the country'. 'It's close to collapse. In terms of new investments - there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks. Budgets for 2015 are being cut by everyone'. And to think it was just yesterday that the WSJ telling anyone who believes propaganda that 'Christmas has come early for British consumers'."

Zum Artikel 'Tyler Durden', erschienen auf ZeroHedge (19. Dezember 2015) »


"In response to low oil prices, the Company plans to suspend its oil directed drilling activity in its Eagle Ford shale properties in South and East Texas and in the Tuscaloosa Marine shale in Mississippi.  Comstock has released its rig in the Tuscaloosa Marine shale and will postpone its drilling activity there until oil prices improve. Comstock currently has four operated rigs drilling on its Eagle Ford shale properties. The Company will release two of these rigs in early 2015 and will move the other two rigs to North Louisiana to start up a drilling program on its Haynesville shale natural gas properties. Comstock believes that improved completion technology, including longer laterals, will provide strong returns on drilling projects at current natural gas prices."

Zur Pressemitteilung von Comstock Resources, Inc. (18. Dezember 2014) »