Search Results for: fracking

The Great American Oil Bust: Massive Debt Overhang Will Kill Drilling/Jobs, But Boost Short-Term Production

Posted on by David Stockman

Irony of a debt-fueled boom turned into the Great American Oil Bust

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Mind The Rig Count—–The Headwinds From The Oil Price Collapse Are Gathering Force

Posted on by David Stockman
The point is that perception and reality can be two entirely different things. The current perception is that falling oil prices will be a net positive to the economy. However, could reality actually be quite different? Login or Join Now To Read More

Why The Stock Market Casino Is Dangerous: The Case Of Looney Tunes In the Sand Dunes

Posted on by David Stockman
On August 4th the Wall Street Journal carried a breathless tale of how a handful of obscure oilfield suppliers were striking immense riches in the sand dunes of Wisconsin. Owing to the “shale revolution”, the stock price of an outfit that had originated in the  stagnating business of supplying sand traps to golf courses, and which had […]
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At The Bullish Extreme: Take The “Blue Pill” At Your Peril

Posted on by David Stockman
The most recent development strikes us as actually as especially meaningful. Bullish positioning has taken off like a rocket in the last quarter from an already high level (bull and sector assets rose by nearly 40%), while battered bear assets have plunged nearly by another 40% in just the final ten weeks of the year. The last quarter is especially noteworthy, as a massive surge in the bull-bear ratio........
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The Lump Of Coal In The Shale Patch Gets Bigger—–Nat Gas & Liquids Crushed Too

Posted on by David Stockman
But there is no respite for the American oil patch. The price of oil has plunged 50% since June, the price of propane is down 50% since its recent high in mid-September, and natural gasoline is down 32% since recent high in mid-November. None of the fancy charts natural gas drillers have shown to investors work at these prices...... Login or Join Now To Read More

The Saudis Aren’t Kidding: Why The Oil Plunge Is Here To Stay

Posted on by David Stockman
And I also don’t understand why nobody seems to understand what Saudi Arabia and OPEC have consistently been saying for ever now. They’re not going to cut their oil production. Not going to happen. The Saudis, probably more than anyone, are the guys who know what demand is really like out there (they see it and track it on a daily basis), and that’s why they’ll let oil drop as far as it will go. There’s no other way out anymore, no use calling a bottom anywhere....... Login or Join Now To Read More

I’m Not Buying It——Not The Wall Street Rip, Nor The Keynesian Rap

Posted on by David Stockman
First comes production. Then comes income. Spending and savings follow. All the rest is debt…….unless you believe in a magic Keynesian ether called “aggregate demand” and a blatant stab-in-the-dark called “potential GDP”. I don’t.  So let’s start with a pretty startling contrast between two bellwether data trends since the pre-crisis peak in late 2007—debt versus production. Not […]
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Economists-In-Wonderland: Recession=Stimulus

Posted on by David Stockman
It is amazing the speed at which FOMC officials have embraced not falling oil prices but collapsing crude. The pace of the decline is being driven, contrary to the fracking miracle, by the fact that nobody seems to want to bid on the stuff. That is, as I noted earlier, a demand problem. But officials... Login or Join Now To Read More

Mr. Market Is Back—-Plunging Oil Prices Are Busting The Money Printers’ Bubbles

Posted on by David Stockman
When you’re as addicted to debt as the shale industry has been – and still would be if they could still get their fix -, then seeing prices for your products drop over 40% and the yields on your bonds just about double (just for starters), then you have not a problem, but a disaster. And one that’s going to reverberate through all asset markets. Login or Join Now To Read More