[vox_mundi]

What history teaches us about USA's energy boom
http://www.usatoday.com/story/money/mar ... /16282301/

If you do a basic search for the term "US oil production," chances are that you will come across a slew of articles singing the praises of the oil and gas industry. Adjectives like "flooding" and "overwhelming" are used to describe the amount of production coming online, and Americans are having a serious conversation about the possibility of overturning decades-old laws that restrict the export of oil. Here's the funny thing, though: This isn't the first time that America has experienced a near euphoric mindset surrounding a surge in a high value commodity

Everyone knows the investing mantra that past performance does not guarantee future results, but knowing the history behind these previous booms can teach us some very valuable lessons about how to approach this one. So let's take a stroll down memory lane and see what we can learn from three previous booms: ...

...The lesson here is that even the most lucrative ventures--whether gold, oil, or even precious minerals--can be a poor investment if the costs are simply too high. This is a message that certainly isn't lost on today's energy boom, either. Some may recall that just a couple years ago, Chesapeake Energy was in a situation where despite the promise it held with vast acreage positions in several prospective shale formations, the costs of holding those leases as well as the debt load to cover their purchase became extremely cumbersome and impeded its ability to spend on the actual development of those fields. This forced Chesapeake to sell off huge swaths of land to lower lease expenses and trim its debt profile, leaving it with a much smaller portfolio, but a much more profitable one today

[ROCKMAN]

Vox et al: If y'all want to see how "booms" can crucify investors/companies goes search the web for details of the late 70's boom. What's happening now pales in comparison. Rig count topped 4,500 compared to around 1800 today. Check out how much oil production DIDN'T increase back then. That was a slaughter compared to he flesh wounds of today. LOL

[BobInget]

It's not a bubble till you hear about it from your 'get rich' uncle. In point of FACT, while oil is down a few points many producer's shares are off as much as 25% from highs. This, at the beginnings of what i'll call
World Oil War Number Three. Canadian producers are being slaughter BECAUSE any marginally literate
person are led to believe reserves OUTSIDE the reach of radical Islamic forces are safe haven. Shorts know this better then any and are prepared to milk these 'suckers' dry. AS most consumer demand (it's higher)
is inelastic, can this economy survive 'shorts' prompted $60 price increases in a few months?

When Uncle Ted tells you oil is going to $150. sell.

We are obviously in a thinning out process exacerbated by loud-mouth 'let's export oil and gas' rumors.
Watch how these so called 'experts' pivot when asked about that pesky 7.6 million barrels*



*EIA: week ending 9/19/14
U.S. crude oil imports averaged 6.9 million barrels per day last week, down by 1.2 million barrels per day from the previous week. Over the last four weeks, crude oil imports averaged about 7.6 million barrels per day, 4.7% below the same four-week period last year.

BI: More then curious to note EIA reported imports for this week just past.