Last night I went by a different oil field.. I was struck that out of.. 15 to 20 pump jacks.. I only saw 1 (one) that was running..   I know that the world Crude Oil Market will probably not be swayed by this infinitesimal supply drop.. but still.. on the grander scheme.. an environment that thought it was running out of $100 crude to one of TOO much at $60.. does not seem rational.

How long can a market stay irrational?

(the joke is longer than you can stay solvent..)

so speaking of that.. I stumbled across these articles by David Stockman.. which were good imho.



There's gonna be a severe amount of financial pain with lower oil prices for some..

http://davidstockmanscontracorner.com/chart-of-the-day-opecs-export-revenue-to-collapse-from-900b-to-450b/

but eventually.. lower prices are gonna fix lower prices..

In a stunning analysis this week, Goldman Sachs found almost $1 trillion in investments in future oil projects at risk. They looked at 400 of the world’s largest new oil and gas fields — excluding U.S. shale — and found projects representing $930 billion of future investment that are no longer profitable with Brent crude at $70. In the U.S., the shale-oil party isn’t over yet, but zombies are beginning to crash it.

The chart below shows the break-even points for the top 400 new fields and how much future oil production they represent. Less than a third of projects are still profitable with oil at $70. If the unprofitable projects were scuttled, it would mean a loss of 7.5 million barrels per day of production in 2025, equivalent to 8 percent of current global demand.

http://davidstockmanscontracorner.com/here-come-the-oil-field-zombies-1-trillion-stranded-at-70bbl/ 

Short of war.. it probably will not happen tomorrow.. but it's only a matter of time before Crude prices turn back higher.. I do agree that we probably got some more wash out yet to go.. but this will be the exception.. not the norm in a world where China is now the largest importer who will grow consumption at these levels.. on a massive scale... as will the rest of the world.. see this weeks US demand for example.

jmho.. "I could be wrong."