Commodity Trade Mantra

Posts Tagged ‘Oil Boom’

OIL - The Untold History of Black Gold & How it began the Political Strategies of the West

The political strategy of the U.S. had to adapt to provide for the needs & wants of the American population. The ‘70s marked the turning point when the U.S. shifted from being an oil exporter to the world’s largest oil importer. The oil crisis of 1973 was the game changer that transformed the international political & financial system into the current system of petrodollars & oil wars.

Why Price Of Oil Is More Inclined Towards $20 Than $80

If the price of oil stays at this level for the rest of the year, we are going to see a whole bunch of energy companies fail, billions of dollars of debt issued by energy companies could go bad, and trillions of dollars of derivatives related to the energy industry could implode. This is just the beginning of the oil crisis.

The Irony of a Debt-Fueled Oil Boom

The cash has already been drilled into the ground. Now it’s just a matter of getting the oil and gas out to service the debt. The more the price drops, the harder they have to try to increase production. This is the irony of a debt-fueled oil boom that turned into an oil bust: producers cannot back off regardless of how low the oil price may be.

America’s Shale Boom is Not Dead

America’s oil boom is real. Underneath domestic soil sits a massive supply of oil and gas – decades worth of supply. There’s no “great lie” found at the heart of America’s shale boom. Many of the well-run players in this space will never get close to default, let alone spark a 2008-type meltdown. The production is no flash in the pan either.

Oil - The Black Gold Loses Glitter

If oil stays low, it may turn out that entire U.S. oil boom was just one of many Federal Reserve inflated bubbles. If it pops, the job losses & debt defaults that would ensue could have a far greater impact on the economy & the credit markets than ever before. Ultimately then, QE 4 may need to be much larger than QE1, 2 & 3 combined!

US to Become Less Dependent on Foreign Oil

The US Energy Information Administration released on Tuesday an early version of its Annual Energy Outlook for 2014. The main item being that the United States will continue to develop its own oil and to press for more efficient cars in order to reduce demand on oil.

The Shale Oil Boom is More of a Mirage than a Miracle

Shale oil plays are going to be probably much less than a 10-year flash in the pan. They are very dependent on a lot of different things, including low interest rates and the ability to keep borrowing – which could turn around very quickly. Lower oil prices would tend to do the same thing.

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