OIL 2017 = THE COST OF IT ALL
So – OPEC cuts back during January Holiday cutbacks. The USA exported over 500,0oo barrels last week. The USA the UK and Brazile tripled their exports to ASIA and Opec market share is being trashed the longer this goes on.
As the USA now a FULLY OIL NATION and EXPORTER ramps up its supplies – it imported over 1 million less in the last three week averages. This is the distance of the OPEC Cuts.
As I reported this is not a price war it is a long term MARKET SHARE WAR. Where are those reliant on energy going to trust getting their energy? OPEC with a rising debt in the red or stable nations or the USA with rising PETRO WEALTH just now coming online.
What is the risk when compliance is well below 80% in March and April from OPEC ( we can see the tanker numbers the OPEC supply is breaking out and rising back up ). It is all about the market share. The OPEC suppliers lose market share to the world or they let the market determine the price – which is lower than today and they still lose market share. Nothing can stop the USA from rising and rising output and market share. Folks the world has changed at the core OIL level.
No one can predict where this goes or ends up. We are drowning in Oil. THE WORLD IS DROWNING IN OIL. Nature makes new oil. The Earth farts oil and gas. More and more is being discovered. Old capped wells have filled back up with earth farts – they do not want consumers to realize OIL IS ITSELF A FULLY RENEWABLE RESOURCES and is NOT SCARE nor is it precious depleting and rare. The present tax and related schemes for energy world wide are just insane.
Trump is making the USA strategically self-reliant on energy. We are falling under 7 million barrels of imports down by 2/3 rds as our own market share shifting. Our wealth rises our dollar rises in value and our future looks well OIL shinny. WE have UNLIMITED OIL and technology is dropping the price to get it to market locally like a stone. Dependence on OPEC oil will soon be non-existant. OPEC knows this.
The USA can feed all its people without a drop of imported oil. Few nations can say that. In the end that is the wealth of nations. ADD IN OIL WEALTH and how wealthy are you?
Opec we told you is an antique. They can’t control the market. Now they can’t influence the market. The market is IN control. Opec is making mistakes. OPEC lost control ten years ago. Control can never return to OPEC. Opec is losing market share. They have no way to keep the market share no cards to play because they are rapidly going broke. Their model IS broken. Until the market fixes what OPEC can not we have to wait to see. Investors will learn the truth by reading my blog or the harder way by losing big bucks on the wrong side of the oil bet.
If I were a bull bet on oil…I would be very nervous right about now.
Berny Dohrmann – Seeing the Bulls skidding right over a cliff in the oil patch
PS: Russia is not helping OPEC Russia is helping RUSSIA and watching the price – if it falls Russia can’t afford to fly Putin to Trump. The trillion dollar pea – market share market share who gets the market share – which pea has it today which tomorrow?
— February 24, 2017