onlooker wrote:Tanada wrote:Isn't this because the yearly average sale price for 2016 is about $20/bbl lower than it was in 2015? I believe the SEC requires reserves be recalculated annually based on average price?
Well if this is the case then that is not a good portend for the shale/fracking companies as the lower oil price should weaken the financial position of these companies as recoverable reserves should be revised down
Ah, the doomers.
If oil prices are high, then "no one can afford it" and we're all doomed short term.
So you'd think if oil prices are low, which is good for business and the consumer (ex the oil patch), then that would be good news.
But no, then the doomers ignore that, and claim "oil producers will go bankrupt en masse, so we're all doomed".
As though:
1). Oil consumption wasn't highly correlated with economic growth, globally.
2). Low oil prices weren't generally helpful to overall economic growth.
3). Those oil reserves are going anywhere. (They'll just wait for higher prices and/or stronger economic hands to produces it, when the price warrants it, re profitability).
4). And as always, there are no viable alternatives. (But wait, the real world progress and news on the EV says that increasingly, there ARE viable alternatives. Which, I'm sure, the doomers will now insist is more bad news).
If the short term doomer crowd, led in spirit and general content by the almost always wrong zerohedge had a decent track record, it would be one thing.
But given the track record, why is it that these frequent pronouncements of gloom and doom should have us trembling in fear again? I forget.
...
Meanwhile, I eagerly wait seeing the new PHEV models and the Bolt on the road and at car dealers in 2017. (And maybe my driveway, depending on how much dealers are willing to dicker).
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.