Tuesday, October 14, 2014

Our Pending Shale Oil Disaster

Here is a report which makes it clear that Obama ad-Dajjal is screwing up again; this time in the shale oil market:

But that is nothing compared to the no bid market the (very, very levered) shale companies will find themselves in if and when, for whatever reason, Brent drops below $85 to a price where only Qatar is profitable on the global Brent cost curve.

So while we understand if Saudi Arabia is employing a dumping strategy to punish the Kremlin as per the "deal" with Obama's White House, very soon there will be a very vocal, very insolvent and very domestic shale community demanding answers from the Obama administration, as once again the "costs" meant to punish Russia end up crippling the only truly viable industry under the current presidency.

As a reminder, the last time Obama threatened Russia with "costs", he sent Europe into a triple-dip recession.

It would truly be the crowning achievement of Obama's career if, amazingly, he manages to bankrupt the US shale "miracle" next.

http://www.zerohedge.com/news/2014-10-14/if-oil-plunge-continues-now-may-be-time-panic-us-shale-companies

This is what happens when you elect a dumbass who thinks he knows everything and will not listen to the voices of experience.

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