If OPEC just declared war on the US fracking industry by forcing oil prices lower, you have to wonder where that leaves the UK Tory party and their friends at Cuadrilla. The companies heavily invested in fracking are largely funded by junk bond debt. How long can they last out unprofitability? What happens when they fail?

There's some nasty ramifications (and some upside) of a sustained low oil price until OPEC has regained control again and oil prices are allowed to rise.

Peak oil doesn't mean a gentle rise in price as predicted by classic supply-demand economics. It means increasing volatility and chaotic price movements. It will be dominated by the major players jockeying for position and control.

http://www.dailykos.com/story/2014/11/27/1347948/-The-Fracking-Boom-Just-Went-Bust
 The Fracking Boom Just Went Bust »
Opec chose not to decrease oil production today. Oil (WTI) closed as 69.05 / bbl.

To quote a Russian oligarch reported via Bloomberg :
“In 2016, when OPEC completes this objective of cleaning ...

[from: Google+ Posts]


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[ 29-Nov-14 7:34am ]