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Page added on August 2, 2015
Exxon, Chevron Bracing for Dark Times Ahead
Exxon Mobil Corp. and Chevron Corp., the biggest U.S. energy producers, hunkered down for a prolonged stretch of weak prices after posting their worst quarterly performances in several years.
Exxon reported its lowest profit since 2009 as crude prices fell twice as fast as the world’s largest crude producer by market value could slash expenses. Chevron recorded its lowest profit in more than 12 years after the market rout forced $2.6 billion in asset writedowns and related charges. The companies’ shares fell to multi-year lows.
Stung by the worst market collapse since the financial crisis of 2008, oil explorers from The Hague to Calgary to Houston are firing staff, scaling back drilling, canceling rig contracts and reducing share buybacks to conserve cash. Chevron said the slump convinced it to lower its long-term outlook for crude prices.
“This is the beginning, not the end, of the writedown process,” Paul Sankey, an energy analyst at Wolfe Research LLC, said on Bloomberg TV. “The biggest concern is that we’ll see weaker demand over the second half of the year.”
Oil entered its second bear market since mid-2014 this month as a flood of output from North American shale regions, the Persian Gulf and deepwater fields overwhelmed consumption by refiners and chemical producers.
Avalanche of Crude
Exxon and Chevron contributed to the avalanche of supply by increasing second-quarter crude output by 12 percent and 1.7 percent, respectively. Exxon expanded oil production in every region where it operates except Australia/Oceania. All of Chevron’s growth occurred in the U.S.
“Oil prices will be under downward pressure until there is evidence the glut is shrinking,” analysts at IHS Energy said in a note to clients. “This will not happen quickly unless prices fall even further from recent levels,” discouraging new drilling.
Exxon shares fell 4.6 percent to $79.21 in New York, the lowest closing price since June 2012. Chevron dropped 4.9 percent to $88.48, the lowest close since December 2010. The companies were the day’s worst performers in the Dow Jones Industrial Average index.
Exxon cut share repurchases for the current quarter in half to $500 million after net income fell to $4.19 billion, or $1 a share, from $8.78 billion, or $2.05, a year earlier, the Irving, Texas-based company said in a statement. The per-share result was 11 cents lower than the average estimate of 20 analysts in a Bloomberg survey.
Spending Cuts
Refinery profits fattened by lower crude costs were more than offset by weaker results in the company’s primary business, oil and natural gas production, Exxon said. The company’s U.S. wells lost $47 million.
Exxon reduced spending on major projects like floating crude platforms and gas-export terminals by 20 percent to $6.746 billion during the quarter, according to the statement. International crude prices fell 42 percent from the previous year to average $63.50 a barrel.
Chevron’s profit dropped to $571 million, or 30 cents a share, from $5.67 billion, or $2.98, a year earlier, the San Ramon, California-based company said in a statement. The per- share result was well below the $1.16 average estimate.
Chevron’s biggest business unit — oil and gas production – – posted a loss as the second-largest U.S. energy company recorded a $1.96 billion writedown on assets and another $670 million charge for taxes and projects suspended because they no longer make economic sense.
Pessimistic Outlook
“The writedowns will get worse into the end of the year as companies complete their end-of-the-year SEC filings,” Sankey said. “The market still looks very oversupplied with oil and we’re in peak demand season.”
Exxon Chairman and Chief Executive Officer Rex Tillerson was among the first to shrink spending as the crude rout began more than a year ago. After cutting the budget by 9.3 percent in 2014, this year’s reduction may exceed the original 12 percent target, Jeff Woodbury, vice president of investor relations, said during a conference call with analysts.
Tillerson, an Exxon lifer whose 10th year as CEO began in January, has been pessimistic about the prospects for an imminent oil-market rebound. On April 21, he told a Houston energy conference that the supply glut and low prices will persist “for the next couple of years” at least.
Those remarks proved prophetic: international crude prices that rose 45 percent between Jan. 13 and May 6 have since tumbled 22 percent, inaugurating the second oil bear market in 14 months.
“Chevron was a disaster; Exxon was a disappointment,” Fadel Gheit, an analyst at Oppenheimer & Co. In New York who rates the shares of both the equivalent of a hold and owns each. “A rising tide lifts all ships, but when the tide goes down, all ships go down.”
30 Comments on "Exxon, Chevron Bracing for Dark Times Ahead"
Kenz300 on Sun, 2nd Aug 2015 8:03 am
Maybe it is time for OIL companies to transition to ENERGY companies and invest in wind and solar energy production. The world is in transition to safer, cleaner and cheaper alternative energy sources. It is time for the OIL companies to wake up and plan for the future.
Climate Change is real….. we need to deal with the cause (fossil fuels)
Listen Up: Pope Calls for the Replacement of Fossil Fuels, Renewable Energy and Solar Subsidies – Renewable Energy World
http://www.renewableenergyworld.com/articles/2015/07/listen-up-pope-calls-for-the-replacement-of-fossil-fuels-renewable-energy-and-solar-subsidies.html
shortonoil on Sun, 2nd Aug 2015 8:09 am
The Etp Model informs us that the world will never again be able to consume all the oil that it extracts. Oil can no longer power enough economic activity to generate the demand for all that is produced. It is called the energy half way point, and we reached it in 2012. The situation will only worsen going forward:
http://www.thehillsgroup.org/depletion2_022.htm
A cherished hypothesis is that the world will go to war over scarce resources; oil being the major one. That will not be the case; the world is more likely to go to war to shut in excess, and now unusable supply. Like most wars they will be exercises in futility. War can not reverse the impact of depletion. Soldiers will die fighting the shadows of the Laws of Nature.
http://www.thehillsgroup.org/
paulo1 on Sun, 2nd Aug 2015 8:56 am
Short,
Countries will certainly go to war over food supplies and water, and that list should probably be reversed. If Oil has a role in that, then it is in the mix.
I believe we will see an increasingly severe disaster unfold with human migration for straight forward survival. California might be included on the list if this coming winter stays dry.
Jimmy on Sun, 2nd Aug 2015 9:19 am
I make about $145G a year and if I gphave to I’ll spend every last dome to feed myself. Last time I checked we’re in the business of turning hydrocarbons into carbohydrates via an agricultural system highly dependant on deisel machinery. I don’t know what short is smokin’, his report is starting to sound more dogmatic everyday. I thought Plant sounded like a scratched record. I’m pretty fucking sure we’ll be sucking out every last drop we possible can to keep those calories growing.
Boat on Sun, 2nd Aug 2015 9:20 am
Kenz,
I don’t like subsidies per say. What I do like is major along with other countries is tech advancement on a large scale. Just think where solar could be if it had the same investment as the space program. Then let the knowledge spread for free and let the capitalists compete.
No matter what governments do solar, wind, geothermal, etc will only explode and take over as an energy source if you can install and maintain it cheaper than FF. When that happens there will be a plethora of capital to build out quickly.
Boat on Sun, 2nd Aug 2015 9:24 am
Getting old lol. Kenz, I don’t like subsidies per say. What I do like is major investment along with other countries to advance tech for these renewables.Just think where solar could be if it had the same investment as the space program. Then let the knowledge spread for free and let the capitalists compete.
No matter what governments do solar, wind, geothermal, etc will only explode and take over as an energy source if you can install and maintain it cheaper than FF. When that happens there will be a plethora of capital to build out quickly.
Davy on Sun, 2nd Aug 2015 9:31 am
Jimmy, some will be sucking in the oil regardless of the price but others will just starve. Like I have said before you can discount Shorts message but not dismiss it. His message is an important addition to our peak oil dynamics discussions here on the board.
BobInget on Sun, 2nd Aug 2015 10:11 am
Kenz, British Petroleum dropped the “Energy” part of their logo years ago.
Did you know, at one time Exxon manufactured
solar panels?
Big Oil realized years ago alternative energy would become their biggest headache. As soon as wind, solar began to eat away at profits, BO
decided Not to encourage alternatives and concentrate on their base business, oil and gas.
ExxonMobil is spending millions to counteract
what they characterize as climate change propaganda. Moves away from oil and gas they feel will harm profits.
The article above a prime example such press.
XOM still turned huge profits. Exxon refineries in particular are printing money in this low price environment. BP’s profit s were harmed by paying out billions in fines.
Shortonoil, The world is already at war over oil and other scarce resources. That you constantly ignore the fact should be a source of consternation to any serious energy student .
(we are all learning)
History ignored ,by Friend of Board Shortonoil. AKA “unwantedoil” or “toomuchoil”
“oiltooexpensive”
When a civil war in Libya locked out crude oil exports for months, Saudi Arabia stepped up, filled gaps with increased production . Reasonable enough short term.
When Syrian, South Sudan, Nigerian ‘civil wars’ interrupted production, , Saudi Arabia again raised output to meet increased demand.
(demand is in fact going higher)
To deny that Iran, Russia and Saudi Arabia are locked in conflict is to deny reality.
Russia, China are investing billions of USD’s
shoring up Venezuela’s oil reliant government.
WHY? Russia and China are lending money and expertise to oil dependent Mexico..Why would they do that? Ecuador is now totally indebted to China and Indonesia, why? China has invested trillions in every oil producing nation both to secure future oil supplies and export markets.
Look hard at China, Vietnam Japan, militarization.over potential South China Sea oil and gas resources. What about Arctic border nations? Russia, Canada, Norway disputes over oil that has yet to be mined. These aren’t wars…yet.
Is the war in Iraq real for most Americans?
I say not. War, shortonoil denies exists.
Shortonoil states it’s about slowing
oil flows. In some sense of course he’s correct,
part of any combat strategy is to deny enemies supply lines.
Contradictory?
“the world is more likely to go to war to shut in excess, and now unusable supply. Like most wars they will be exercises in futility. War can not reverse the impact of depletion. Soldiers will die fighting the shadows of the Laws of Nature”.
Shortonoil is saying there is far too much ‘unusable’ oil.
Lets be honest. In ‘normal’ times there is never an exact match of supply and demand.
Today we are looking at a drop in the RATE of growth. NOT actual oil consumed or required.
Look it up. Actual consumption, oil burned or used for chemicals is higher this year then last.
In more normal times, W/O all this ‘glut’ hype, the world has an ‘extra’ two millions barrels p/d at sea, in storage, in pipeline transit etc.
During wartimes, as we find ourselves, confusion reigns. Will the US coalition fighting ISIS tell how much jet fuel was consumed in 10,000 air raids over Iraq, Syria, Pakistan, Afghanistan, on and on? I’m claiming worldwide oil war we find ourselves in, up to our armpits, consumes an extra million barrels a day, conservatively.
Look up how much oil is consumed in Denmark
per day at $8 bucks a gallon for ‘unwanted oil’.
Boat on Sun, 2nd Aug 2015 10:38 am
The “glut” is almost nothing in terms of overall production. It is the signal to the markets that there is no one country or large oil company that is willing to sacrifice their market share to shore up profits.
Seems simple to me. Supply and demand.
Now what cause oil price to jump with no change in the fundamentals. Congress says no to the nuke deal with Iran. Israel threatens. Iran gives bigger weapons to hezbollah, US gives bigger weapons to the Kurds. Ditto the same idea in Ukraine. Iran gets the nuke. The world sees the US cannot stop proliferation of nukes anymore. Japan gets the nuke, South Korea, Australia, Canada, along with 50 other nations. And we coexist together for ever lol.Sarcasm intended.
BobInget on Sun, 2nd Aug 2015 11:44 am
Boat, OPEC is predicting higher prices in Q 4.
OPEC production is seriously slowing.
“Oil saw its worst monthly drop since the 2008 financial crisis after signs that top producers in the Middle East were continuing to pump at record levels despite a growing global gut.
A higher U.S. oil rig count for a second week in a row added to the market’s downside. Uncertainty ahead of key U.S. oil production and rig count data due later in the day also weighed on prices, despite a weaker dollar, which would normally support commodities.
U.S. crude closed down $1.40, or 2.89 percent, at $47.12 a barrel. The contract fell nearly 21 percent for the month of July, marking its largest monthly decline since October 2008, when oil had an epic collapse at the outbreak of the financial crisis. Brent fell 18 percent on the month.
Meanwhile, Brent was down $1.10 at $52.21 a barrel.”
Now, a counter argument. This poster agrees, obviously.
By Leonard Brecken
Posted on Fri, 31 July 2015 18:09 | 5
“Whoever would overthrow the liberty of a nation must begin by subduing the freeness of speech.”
Benjamin Franklin, Silence Dogood, The Busy-Body, and Early Writings
I start with that quote because once the media, as well as politicians for that matter, have no accountability for actions or words then liberty will dissolve. Over the last few weeks I have witnessed another litany of lies that the media insists on putting forth. They come in the form of statements presented as facts to sway opinion while others are opinions quoted by others. Either way, the bias in talking down oil prices, reinforcing the “glut” that is fueled in part by misleading EIA and IEA data, is readily apparent.
Earlier in the year I documented half a dozen media reports which turned out to be 100 percent false. Now I expose another half dozen in just the past few weeks. Prices remain unchanged as a result of the largest drop in production in a year, as well as a large inventory draw this week via the EIA. The very fact that prices haven’t responded demonstrates my points. This comes despite the dollar index (UUP) over the last month remaining essentially flat while USO has fallen over 15 percent (so much for that relationship, except when the dollar rises right?)…
Related: A Reality Check For U.S. Natural Gas Ambitions
. Even at the time of this article the dollar index is down 1 percent yet oil is down as well.
Here is a list of the latest lies:
1. Iran Agreement to flood market. FALSE. OPEC has even stated that the natural 1.0 to 1.5 million barrels per day (MB/D) rise in demand in 2016 will more than offset any production rises in Iran which, contrary to earlier reports, won’t come on line until early 2016. In addition, China will open up refining to third party, non-state-owned refineries which will reportedly add another 600,000 B/D in demand in 2016.
2. Iran floating storage will flood market. FALSE. As initially reported in the media, it was Iranian oil floating in storage but it now turns out to be low grade condensate as stated by PIRA on Bloomberg a few weeks back and then supported by tankers attempting to move inventory to Asia. Later media reports corrected earlier ones that the storage is in fact condensate while failing to report on its grade.
3. U.S. production resilient. FALSE. The latest EIA data refutes this as does data via EPS calls at Whiting Petroleum (WLL) & Hess Corporation (HES). Yes, some are increasing production such as Concho resources (CXO), but in the Bakken both companies confirm that 2H15 production will decline due to lower rigs and depletion. HES raised production for the year as a result of 1H15 production being higher than expected by some 5 percent. All in all, next week should see further production drops.
4. U.S. Inventory resilient. FALSE. EIA data would have fallen last week by some 4MB as it did this week ex import surges and continues to be overstated by “adjustments” made to production that amount to millions of barrels in daily production.
5. Cushing inventory fears revived. FALSE…see above.
6. OPEC supply will continue. The Saudis, as OPEC’s largest producer and largest contributor to growth in 2015, have already stated that they will reduce output by 200,000-300,000 by summers end. Yes true, OPEC as an entity won’t formally announce a cut but isn’t it misleading to report this?
BobInget on Sun, 2nd Aug 2015 12:12 pm
Again, while “all’s fair in love and war’ . That said, falsehoods over military consumption trump all.
Foreign and US military releases number of sorties. We know where most of these aircraft
take-off, mid-air refuel, drop a “payload’ return to base. From this firm data we can make good guesses for consumption. I maintain in an effort to minimize military consumption of a million barrels per day, keep oil prices in check, governments are simply pushing a ‘glut’ scenario.
Note that I exclude the manufacture and delivery
oil costs of military ordnance, rolling stock, munitions of every kind being used in Syria, Iraq,
Sudan, Nigeria, now Egypt, Turkey, Libya, Afghanistan, Pakistan, Saudi Arabia and its coalition. USA and Its coalition. Russia and its
war in Ukraine. Mexico and its war on Narcos.
Nor have I included care and feeding of displaced-persons. Call it ‘weather’ and war conspiring to kill off thirty eight million world-wide. Another holocaust in the making.
The entire world, north and south hemispheres are experiencing a ‘migration crisis’ with no end in sight. Finding enough oil to feed thirty eight million displaced would be a huge challenge bu itself. During endless rounds of falsehood and fighting it will be impossible.
shortonoil on Sun, 2nd Aug 2015 12:17 pm
“I don’t know what short is smokin’, his report is starting to sound more dogmatic everyday. “
That is simply because you still consider oil as barrels of liquid hydrocarbons. Oil is the energy source that powers the world’s transportation fleet. Transportation is a critical link in world trade; without that energy we would have no transportation, and no modern civilization.
Oil is a natural resource that is as susceptible to depletion as any natural resource. The world’s petroleum reserve can be likened to a forest of trees that take a few million years to grow. First the biggest trees are cut and used, eventually, only trees big enough to make match sticks remain. We are now burning the last few matches in the box.
World oil production began with multi-billion barrels fields, it then fell to billion barrel fields, then multi-million barrel fields, and then million barrel fields. Field size has been getting progressively smaller. When fields become smaller they provide less energy; they have to be replaced more frequently. Drake began the oil age in Pennsylvania with a 63 foot well drilled with a steam powered drill. The great US, Russian and Middle Eastern fields were found at about the 4,000 foot level. The average well in McKenzie County is now 11,200 feet, and the well that killed Deep Water Horizon was over 30,000. Each step down took much more energy to get there.
If that is a broken record it is one that petroleum engineers have been telling us for a very long time. Apparently, you just haven’t been listening!
Apneaman on Sun, 2nd Aug 2015 1:28 pm
“I don’t know what short is smokin’, his report is starting to sound more dogmatic everyday.“
How is that possible unless short changes the contents of the report everyday?
Boat on Sun, 2nd Aug 2015 2:08 pm
Bob,
the media, as well as politicians for that matter, have no accountability for actions or words then liberty will dissolve
I would counter that nothing has changed. After the American revolution George Washington gathered up troops to force whisky producers to comply with a new tax for paying off war debts. Why was it we wanted freedom? We didn’t like being taxed with no representation.
Well Washington threw a bunch of them in jail and the rest scattered. In our earliest day it was about power politics. There was no freedom as you like to think of it. Today it is BAU just like then.
OIL: There are around 600 drillers left in the US out of 1600. Who else will need to cut production to see higher prices? The most expensive operations losing the most money would be my guess.
I am not a conspiracy theorist. If the EIA is wrong on the forecast it won’t be the first time. Dosen’t matter, in a few months we will see the impact of $45 oil. I would hazard to guess that tar sands and deep water rigs will also quit new operations soon.
MrNoItAll on Sun, 2nd Aug 2015 2:09 pm
We all need to be bracing for dark times ahead. Those dark times are surely headed our way.
I’m amazed at the posters on this and other forums that can’t see the gargantuan elephant sitting in their living rooms. They assert simplistic Econ 101 points of view, express belief in renewables as a viable replacement for oil, they focus on the petty details of barrel count and any number of other “indicators” that point to business as usual doing just fine.
But what they ignore and discount and refuse to address is the impending total collapse of the global economy. There is just no way that the epic financial bubble that has been generated to keep BAU moving forward can endure for much longer.
The sudden and rapid drop in the price of oil was a big step down toward total economic collapse. Nearly all commodities are following oil downward. Emerging economies, most of which are raw material and commodity exporters, and getting squeezed severely but the pain is just beginning. BAU hangs by a thread.
I like the way Nicole Foss puts it: “The endgame of a monetary supernova is credit implosion, and it does not play out as a slow squeeze.”
A supernova reaches critical mass then burns out instantly. That is an excellent metaphor for our global bubble economy. The implosion is going to be a bright blinding flash that happens in a figurative instant, and THAT will be the end of the world as we have known it. Coming soon, and probably sooner than most of us want to speculate about.
Read all about it:
China And The New World Disorder
http://www.theautomaticearth.com/2015/08/china-and-the-new-world-disorder/
Kenz300 on Sun, 2nd Aug 2015 2:56 pm
The OIL Companies need to get with the program or they will see their market share continue to decline.
World Moves Toward 100 Percent Renewable Energy – First Electricity, Then Heating/Cooling, and Finally Transportation – Renewable Energy World
http://www.renewableenergyworld.com/articles/2015/07/world-moves-toward-100-percent-renewable-energy-first-electricity-then-heating-cooling-and-finally-transportation.html
Apneaman on Sun, 2nd Aug 2015 3:06 pm
Thanks fer bumping us hip MrNoItAll. Never would have caught on without you. You’re well informed by Nichole Foss. Awhile back she said the best way to deal with climate change is to ignore it – don’t talk about it. Good strategy. Then she ran away to New Zealand. Another brilliant move, because where else does one want themselves and their money to be when TSHTF than locked on an island run by a former to big to fail banker who has successfully built up a a nice little fascist police state – in record time. For my money John Key has come up with one of the better survival strategies around. Hey privileged whitey’s….come on down.
Davy on Sun, 2nd Aug 2015 3:12 pm
MrNo, I am on board with the credit implosion and the systematic decay of globalism. My study now is when. I am not looking for a date. I am looking for a process. For me personally I have 3-5 & 10 stair step drop. 3-5 would be the contraction period and 10 the break or snap.
The 3-5 could move a year either way. I am solid on a 10 year break for some reason. My doomstead needs 2 more years for long term prep. Short term prep is finished. As far as society is concerned we need a crisis with a 2-3 year adaptation period to prepare for the break.
I am to the point of timing not the if. I pray that I am just delusional. Life is good for me and my family. I feel dazed sometimes living in the surreal twilight zone of the bumpy plateau/descent in my view but normality for the cornucopians. What is reality? Lights go on, gas at the pumps, and groceries stores full of food means all is well but the system itself is unstable. The fabric of the global system is stretching and fraying. Once that fabric tears it will never be the same. We are living the end days or are we? Surely we are.
Davy on Sun, 2nd Aug 2015 3:37 pm
Ape Man, the talk around the camp fire is New Zealand is a good bug out spot. Not that it matters to me because the Missouri Ozarks are my last stand.
shortonoil on Sun, 2nd Aug 2015 3:40 pm
“I’m amazed at the posters on this and other forums that can’t see the gargantuan elephant sitting in their living rooms.
Oil groups shelve $200bn in new projects as second oil-price slump hits. Wood Mackenzie reports 46 big oil and gas projects deferred. Only a handful of major projects fully approved.
http://www.jeremyleggett.net/
As we have been saying at present prices oil companies are no longer generating enough revenue to replace reserves that they are extracting. By the early 2020’s the wells that are now producing will stop pumping. World commerce will shutter to a halt.
Once Central Banks run out of liquid assets to attach they will fail, and the creation of new currency will stop. New monetary systems will then need to be put into place. Store shelves will stripped bare in the process.
Apneaman on Sun, 2nd Aug 2015 4:28 pm
Davy, unless the campfire is in New Zealand then it is pure speculation and even then New Zealand is just another BAU obsessed five eyes client state of empire. Like everyone else they have major problems. Drought and water shortages being among them.
MrNoItAll on Sun, 2nd Aug 2015 5:22 pm
Davy, shortonoil, Apnea and others — This is NWR. I changed my posting moniker. I won’t be posting as NWR anymore. Reasons have to do with work. Also, due to my company now partnering with (currently) a couple of world class financial firms, we have been obligated to implement a very strict security policy that prohibits me/us from using the company network to post anonymously to any forum or website. So, I won’t be putting my two cent’s worth on this forum during working hours anymore as repercussions could be severe. Just fyi… It’s still okay for me to visit this and other forums and I’ll be doing that regularly, keeping tabs.
Davy, so you really think TPTB can keep the financial bubble inflated for another 3-5 years? I guess we’ll see. That would be truly amazing given the pressures of physical and mathematical reality that are exerting downward pressure on all fronts.
shortonoil on Sun, 2nd Aug 2015 6:08 pm
NR, glad to see you are still alive (being processed in virtual land). The site is not its equal without your constant insightful posts. Sat-Sun will be made more interesting.
idontknowmyself on Sun, 2nd Aug 2015 6:13 pm
I have talked about how the supply chain is under heavy because of the lack of trade.
We now have low oil, steel, coper and cargo shipping prices that are now threatening to showdown the supply chain.
http://www.businesstimes.com.sg/transport/asia-europe-container-freight-rates-fell-228-last-week
Shipping freight rates for transporting containers from ports in Asia to Northern Europe dropped 22.8 per cent to $400 per 20-foot container (TEU) in the week ended last Friday, data from the Shanghai Containerized Freight Index showed.
Freight rates on the world’s busiest shipping route have tanked this year due to overcapacity in available vessels and sluggish demand for transported goods. Rates generally deemed profitable for shipping companies on the route are at about US$800-US$1,000 per TEU.
The global supply chain is now losing money because almost every components is losing money such as oil, global shipping, copper.
How long can this last
Davy on Sun, 2nd Aug 2015 7:19 pm
MrNoit (NR) welcome back. I was wondering why you have been so quiet. Should have know HR BS would come between you and your real calling! Glad we will still have you after hours.
MrNoItAll on Sun, 2nd Aug 2015 8:00 pm
Yeah, Davy. The prophet of peak oil and resource depletion doom has not forgotten his calling. I return to this forum in the nick of time, accompanied by a thick flock of black swans circling overhead, the staff of ranting imminent financial collapse firmly in hand, radiating nervousness and magical compulsions to buy 50-lb bags of rice and stock up on toilet paper. Commodities are crashing. China’s foundation of lies and debt is disintegrating. Container Freight Rates From Asia To Europe just crashed 23% In One Week. Global trade is faltering. People are flat ass broke (except for me). Governments everywhere see imminent riot and social unrest written on the wall, especially those where it is already happening. The illusion that has propped up confidence and liquidity is shattering. Prepare to meet your maker!!
dubya on Sun, 2nd Aug 2015 8:58 pm
Good to see you on line NWR/NIA. All hail the prophet of DOOM.
Over 2 dozen comments and no skeleton? W’zup?
Davy on Sun, 2nd Aug 2015 9:21 pm
MrNo, you and I are both on daily watch for the S in SHTF. I am seeing increasing evidence of doom. Will this be a recession/depression or something more?
We are in uncharted waters. I want to think this life I love will last a little bit longer. I also have fooled myself for 10 years now crying wolf that the big one is coming.
The unique thing about time for humans is it runs out eventually. Every month that goes by gets us closer to an end. Statistically the doomers got the corns by the short and curlies. Time is on the doomer’s side. If nothing else this is going to be a shit storm year because it already is.
Davy on Mon, 3rd Aug 2015 7:46 am
Good Morning:
http://www.zerohedge.com/news/2015-08-03/wti-crude-crashes-45-handle-lowest-march
Kenz300 on Mon, 3rd Aug 2015 11:14 am
Oil companies are doing all they can to slow the transition away from fossil fuels and toward alternative energy sources.
They are standing in front of a moving train…..
If they want to save their companies they need to transition to ENERGY companies and embrace alternative energy sources like wind and solar and even biofuels.
The world is in transition and the grumpy old fossils (men) will soon retire or die and be replaced by younger leaders that are more accepting of alternative energy sources and will chart a new direction for the companies. Divestment from fossil fuels is starting. The only way to combat this is to diversify the company.