King Salman, Thank You ….

2015 December 8
tags:
by drdog09

… for all the gas.

Oil prices have slumped by 5% after the latest attempt by Saudi Arabia to kill off the threat from the US shale industry sent crude to its lowest level since the depths of the global recession almost seven years ago.

Signs of disarray in the Opec oil cartel prompted fears of a global glut of oil, wiping $2 off the price of a barrel of crude on Monday and leading to speculation that energy costs could continue tumbling over the coming weeks.

Shares in energy companies lost ground as the impact of the drop in oil prices rippled through European stock markets. Prices of other commodities also weakened following disappointment among traders that Opec had decided late last week to keep flooding the global market with cheap oil.

Iron ore continued its steady fall and finished the latest session at $38.90 per tonne, squeezing profit margins to the bone at even large producers such as Rio Tinto and BHP Billiton, whose shares fell sharply on the Australian stock market on Tuesday.

Source

But it is time for a economic lesson. Yes you can drive the cost of oil to $20/bbl. Yes you can hinder the shale recovery. Yes you can stop further exploration because it is not cost effective. But natural resources, especially tapped natural resources are not like stocks. They don’t have a CEO to fire or a board of directors to scare. It just sits there waiting.

So play your game. Sure you will hurt oil stocks in the short term. But how long can you last at $20/bbl yourself? Some surmise that even at $30/bbl your kingdom would be broke in 3,4 years. Your OPEC partners, they will be bankrupt even sooner. All the while there they sit, capped, shale oil, ready to suck out of the ground. And the expertise? Sitting there playing gin rummy right now, but back on the platforms when oil rises back to $40/bbl or more.

You are playing Fargo with a short deck and you can’t win. But thanks for all the oil.

42 Responses leave one →
  1. 2015 December 8 10:39 am
    [2]
    bc3b permalink

    Most of the most radical (Wahhabi) mosques and schools in the US are funded by the Saudi government.

  2. 2015 December 8 2:42 pm
    [3]
    drdog09 permalink

    Ok, so my ole GTO won’t take that on — https://youtu.be/8jdh-Psq3Ec — But who would have the guts to drive it??

  3. 2015 December 8 2:58 pm
    [4]

    3 – I didn’t understand most of that but I translated it to mean…. put this in the bat mobile looking thing and it will go really really fast.

  4. 2015 December 8 3:19 pm
    [5]
    drdog09 permalink

    4, if it don’t flip over once you put your foot on the gas.

  5. 2015 December 8 3:21 pm
    [6]
    justrand permalink

  6. 2015 December 8 5:15 pm
    [7]

    We already knew this… just finally getting confirmation of their lies.

    New Emails Suggest Pentagon Had Troops At the Ready to Send to Benghazi — Despite, Get This, Hillary’s and Obama’s (and the Media’s) Claims to the Contrary
    —Ace
    http://acecomments.mu.nu/?post=360473

  7. 2015 December 8 7:21 pm
    [8]

    Mark Steyn rebukes democrats in climate hearing: ‘You’re effectively enforcing a state ideology’
    https://www.youtube.com/watch?v=bTM13sI2BFQ

  8. 2015 December 8 7:38 pm
    [9]
    bc3b permalink

    I am listening to Mark Levin. His radio show is delayed until 8:00 in the Detroit market. It appears he has finally lost his man-crush on Marco Rubio. Now, if only Rush Limbaugh would do the same.

    Little Marco repeated lied to both during the Gang of Eight hearing.

  9. 2015 December 8 8:23 pm
    [10]

  10. 2015 December 9 5:07 am
    [11]

    9 – Happen to catch both today, they both seemed to have lost their man crushes on him and seemed (at least today) to be headed for a Cruz.

  11. 2015 December 9 5:08 am
    [12]

    10 – Saw that one coming a mile away. 😉

  12. 2015 December 9 5:42 am
    [13]

    Bush’s pac’s have finally changed up their commercials here in ga, started new attack ads focused on bashing Cruz, Rubio and Trump; claiming their weak on terror or something, their not very compelling but at least it’s a change from the same lame one they’ve been running for months.

  13. 2015 December 9 5:53 am
    [14]
    drdog09 permalink

    10,

    Buy a Telsa and you won’t even need to be Italian….

  14. 2015 December 9 5:56 am
    [15]
    drdog09 permalink

    Regardless of whether Trump’s ban on Muslims is possible it put most of the GOP pack in the ‘wimp pack’.

  15. 2015 December 9 6:13 am
    [16]

    15 – Oh for sure. I’m loving every minute of this, further exposing everyone for the weak sauce they are, left and especially right. BTW given GOPe response, including Rience’s and the out of no where addition of another debate, which is basically a declaration of open war, I’m fully expecting this to end up as a third party run.

    fyi:
    IBD: The Bowe Bergdahl Case: Where Treason Won Out
    http://news.investors.com/ibd-editorials/120815-784377-the-bowe-bergdahl-case-where-treason-won-out.htm

  16. 2015 December 9 6:16 am
    [17]

    ppp

    “Republican presidential front-runner Donald Trump has hit a new high in North Carolina in part because of his tough rhetoric on Islam, a new poll found.

    Trump gets 33 percent support among that states Republicans, doubling the nearest contender, according to a survey from the liberal-leaning Public Policy Polling (PPP), released Tuesday. Sen. Ted Cruz (R-Texas) is in second place, at 16 percent, followed by retired neurosurgeon Ben Carson and Sen. Marco Rubio (R-Fla.), at 14 percent each. Former Florida Gov. Jeb Bush follows at 5 percent, with New Jersey Gov. Chris Christie and Ohio Gov. John Kasich each at 4 percent.

    The survey was conducted before Trump ignited a firestorm of controversy this week by proposing that Muslims be barred from entering the country. However, the poll tested GOP attitudes on Trumps previous rhetoric on Islam, and found his ideas are supported by a plurality of Republicans in the state.

    Also the Reuters national daily tracking (sample from yesterday), showed no impact (consistent at 35%) thus far, not that put a ton of faith in these or any polls, /just saying though.

  17. 2015 December 9 6:22 am
    [18]
    drdog09 permalink

    “You can always count on Americans to do the right thing – after they’ve tried everything else.” — Churchill

    Militia by any other name? — https://pjmedia.com/news-and-politics/2015/12/8/top-cops-warm-to-idea-of-armed-citizenry-to-confront-terrorists — See snake, kill snake.

  18. 2015 December 9 6:42 am
    [19]
    drdog09 permalink

    People moan Trump’s immigration suggestion. Well then what is this? — http://thehill.com/blogs/floor-action/house/262529-house-votes-overwhelmingly-to-restrict-visa-waivers-for-travelers — if not part of what Trump suggested fiat accompli??

  19. 2015 December 9 7:03 am
    [20]
    drdog09 permalink

    Is Trump that good or does he have angels on his shoulders for luck? —

    “… the Trump proposal requires an act of Congress, but that act has already been enacted. Title 8, Section 1182 of the U.S. Code provides in relevant part:

    Whenever the President finds that the entry of any aliens or of any class of aliens into the United States would be detrimental to the interests of the United States, he may by proclamation, and for such period as he shall deem necessary, suspend the entry of all aliens or any class of aliens as immigrants or nonimmigrants, or impose on the entry of aliens any restrictions he may deem to be appropriate.

    So that’s that.”

    — Donald Sensing

    So 90% of what Trump proposed is ALREADY LAW.

  20. 2015 December 9 7:23 am
    [21]

    It’s meaningless law if the commie in chief won’t use it.

  21. 2015 December 9 8:04 am
    [22]
    drdog09 permalink

    21, Granted. But for the politics of it, those on the wimp squad of the GOP are trashing laws their own participation passed.

  22. 2015 December 9 8:30 am
    [23]

    20 – Never let the truth get in the way of a good MSM\GOPe meme.

  23. 2015 December 9 8:31 am
    [24]

    22 – It’s utterly hilarious to watch the self-implosion.

  24. 2015 December 9 8:56 am
    [25]

    Hilarious – though despite the headline he didn’t actually threaten to use nukes, he just generally said he hoped they’d never be needed.

    http://www.independent.co.uk/news/world/europe/putin-has-threatened-to-use-nuclear-weapons-against-isis-but-hopes-they-will-never-be-needed-a6766196.html

  25. 2015 December 9 9:30 am
    [26]
    justrand permalink

    IP, that video was awesome…passing it along to someone who married an Italian man! 🙂

  26. 2015 December 9 12:19 pm
    [29]

    “US Wary of Muslim Migrants:” ~~~As well as our sheep.

  27. 2015 December 9 12:48 pm
    [30]
    drdog09 permalink

    US Wary of Muslim Migrants: — Gee ya think???

  28. 2015 December 9 1:43 pm
    [31]

    Scott Walker* calls on other GOP candidates to drop out in order to take down Trump: http://hill.cm/VvyoAwu

    Another runs out to expose himself, bullet dodged.

  29. 2015 December 9 2:01 pm
    [32]

    Lace pantied rino peckerwood showing his true colors. He would have been a disaster.

  30. 2015 December 9 3:29 pm
    [33]
    drdog09 permalink

    Can Univ of TX kill affirmative action? — http://pjmedia.com/instapundit/220956/ — I have my doubts but Kagan ain’t in play and even if Kennedy goes for the petitioner its a 4-4 tie and UT wins lacking a reversal.

    Texas needs a permanent seat at the justice building. Its leads in the number of suits currently pending in front of the court.

  31. 2015 December 9 4:56 pm
    [34]

    Trump jumps 8 points in South Carolina after Muslim immigration comments. AP

    Way to go GOPe with adding the extra debate in SC. /s

  32. 2015 December 9 5:15 pm
    [35]

    286 Miami Herald:
    Nearly two-thirds of likely GOP primary voters back Trump’s Muslim ban, poll finds

    L . O. L.

  33. 2015 December 10 5:00 am
    [36]
    drdog09 permalink

    34,

    One has to figure that the SC debate is a bag job in a last ditch effort to stop Trump.

    Question is, what is it they think they have and who is going to be the pitcher throwing the dirt?

  34. 2015 December 10 5:05 am
    [37]
    drdog09 permalink

    Look familiar?

  35. 2015 December 10 6:14 am
    [38]
    drdog09 permalink

    Read this — http://straightlinelogic.com/2015/12/09/with-friends-like-these-by-robert-gore/ — Then if you think it plausible; why should not the US govt be brought up on murder charges as an accessory for the SB killings?

  36. 2015 December 10 7:15 am
    [39]

    36 – Of course , at least that’s their thinking anyway, have a feeling like everything else they do it’s going to backfire on them.

    37 – Perfect.

    Really to get really mad? ->
    http://freebeacon.com/national-security/congress-to-consider-easing-passage-into-u-s-for-immigrants/

    Congress is set to vote on Thursday on what some have called an “unprecedented” right that would allow immigrants easier access to relocate to the United States, according to new legislation offered by a Democratic senator.

    The legislation, which is being offered by Sen. Patrick Leahy (D., Vt.) as an amendment to a larger bill governing nuclear safety, would prohibit the U.S. government from barring any individual from entering the country based on their religion.

    ….And they wonder why Trump is doing well?????????

    http://www.cbs19.tv/story/30710379/surge-of-children-on-border-hundreds-heading-to-north-texas

    As I’ve been saying for months, jeb pacs pointlessly burning through cash on commercials. Jeb… we’re just not that into you pal.
    https://www.washingtonpost.com/politics/jeb-bushs-super-pac-burning-through-money-with-little-to-show-for-it/2015/12/09/0baaa5fe-9df8-11e5-8728-1af6af208198_story.html

  37. 2015 December 10 8:00 am
    [40]
    drdog09 permalink

    Factoid. CoP for Kennedale school district, TX is offering free CHL instruction to all teachers in any district — FREE. There are now 5 ISD’s that permit carry onsite in the north texas area.

  38. 2015 December 10 8:40 am
    [41]
    drdog09 permalink

    Bumper Sticker: If Islam was a consumer product it would be recalled for safety issues.

  39. 2015 December 10 9:50 am
    [42]
    justrand permalink

    Drdog, #37 & #41 are funny…but 100% accurate.

Leave a Reply

You must be logged in to post a comment.