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Old 11-29-2014, 03:55 AM
Danny B Danny B is offline
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Join Date: Oct 2012
Location: L.A. Ca.
Posts: 4,890
Faling oil profits

"Based on data compiled from quarterly reports, for the year ending March 31, 2014, cash from operations for 127 major oil and natural gas companies totalled $568 billion, and major uses of cash totalled $677 billion, a difference of almost $110 billion."
The energy producers lost a LOT of money even with oil at very high prices. A LOT of money flowed into oil investments. Peak-cheap-oil has come and gone,, actually stayed. Investors look at previous levels of consumption and believe that they can just project that forward without any blips. Falling wages and higher oil prices make this untrue. The global slowdown needs less energy. A lot of the financing for shale oil was poorly secured,, junk bonds.
Here is a graph of all the oil plays and what they cost;
http://l.yimg.com/bt/api/res/1.2/geF...1b7cfd0ac3c459
WTI oil is down 25.5% over the last 50 trading days, Oil Breaks $70 - Business Insider

Here is a graph of the stocks of the oil producers;
http://l3.yimg.com/bt/api/res/1.2/CN...ca63f8d7c5a47c

OK, so the oil majors are losing a LOT of money. Their stocks just crashed. Oil is falling rapidly. Here is a graph of the shale plays;
http://finance.yahoo.com/news/breake...162100905.html
Share value is crashing at the same time that debt needs to be serviced;
http://www.cnbc.com/id/102224363?__source=yahoo|finance|headline|headline |story&par=yahoo&doc=102224363#.
The graph of the cost of producing shale is obviously a lie. It doesn't show the all-in cost.
The energy industry previously supplied about $ 650 billion to the finance industry. Now, it is a negative $ 110 billion. OPEC is not bashful and admits that it is declaring war on U.S. shale producers.
http://finance.yahoo.com/news/inside...--finance.html
Obviously, the U.S. can't afford to let the oil producers go bankrupt. They will kick the presses into overdrive to keep them afloat. They have already started.

Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt
At the end of October, according to the Treasury’s Monthly Statement of the Public Debt, the total debt of the federal government was $17,937,160,000,000.

Of this, $5,080,104,000,000 was what the Treasury calls “intragovernmental” debt, which is money the Treasury has borrowed and spent out of trust funds theoretically set aside for other purposes—such as the Social Security Trust Fund.
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So, were just a wink short of $ 18 trillion. $5 trillion has gone missing from trust funds. Ponzi: Treasury Issues $1T in New Debt in 8 Weeks—To Pay Old Debt | CNS News
Not to worry, Barry will take care of everything.
BTW, there is $ 11.25 trillion in consumer debt that has a default rate of 6.5%. That could get messy.
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