THE TRUTH ABOUT OIL SUPPLY/DEMAND

OIL SUPPLY WORLD WIDE IS SOARING – DEMAND IS FALLING:

 

Since the dramatic and unprecedented advances in production and manufacturing of the Industrial Revolution from the late 1700s to the early 1900s, humans have been digging up coal, oil and gas for energy.

Except for the introduction of nuclear power based on uranium in the 1950s and 60s, nothing has changed. Today, coal, oil and gas remain the primary sources of energy, fueling human activities around the world.

But the recent and rapid decline in prices of alternative energy sources like wind and solar, and the plunging cost to store them presage a very different future on the horizon – one in which fossil fuels go the way of the dinosaurs, and where in the next 10 years we will see more changes to the energy industry than we have seen in the past 100.

To begin, America only recently achieved its position as the largest producer of oil and gas; a rise made possible by hydraulic fracturing, commonly referred to as fracking.

Even the cost of 3/4 of the planets oil and gas ( under water ) is dropping so that massive off shore finds are annually coming on line into the mix and no end in sight against a price – only phony speculation has up at 75 dollars and after the silly spike – will fall – to the 50’s and stay there if not lower. Its been 29.00 as a low since 2014 and only speculation by Saudi and OPEC investing into future markets wildly on 50 to 1 margin leverage falsely bids the price up but that bid is not sustainable because of these facts. Pure and Simply boys and girls.

Controversial among environmentalists for the danger of environmental contamination many argue it poses, fracking has nonetheless revolutionized the energy industry by raising supply and lowering gas and oil prices.China is Fracking and Africa is Fracking the entire world is going to FRACK right when demand is falling off a cliff never to return ever again. Oil is like Dinosaurs unaware this was their last feeding – ever.

This process of energy extraction involves drilling down into the earth, where previously inaccessible energy reserves can be harvested, essentially fracturing rock to release the hydrocarbons inside.

One major result of the adoption of this new technology and the dramatic drop in gas prices it has produced is the hollowing-out of the U.S. coal industry, reduced from a 35 billion-dollar industry in just 2011, to a 3 billion-dollar industry in 2017.

Using this dramatic shift as an example, we can see the role cost plays in driving the direction of the energy industry. Consider now that solar energy, which has become steadily more competitive as its scale has grown, has gone from producing electric power at $179 per megawatt hour (mWh) in 2009, to $50 per mWh in 2017.

At this rate, solar energy has already undercut gas ($60 per mWh), coal ($102 per mWh), and nuclear energy ($148 per mWh) in cost.

Similar strides have been made in harnessing wind energy sources, with onshore wind costing $40 per mWh and offshore wind sources in 2017 priced at $60.

Posing zero threat to local communities and environments, offshore wind sources are already being adopted by cities like New York, where a contract was recently signed to build an offshore wind farm off the coast of Long Island that will provide power to millions of homes in the nation’s most populous city.

Dramatic price drop

Extensive use of wind and solar energy requires large-scale energy storage to handle their intermittency. The dramatic drop in energy storage costs, from $3000/kWh to $170/kWh in about 20 years, has made increased storage capacity possible, mainly through the development of the Lithium-ion battery.

For the same reason your new smartphone can hold a charge longer, wind and solar energy are fast emerging as a viable and reliable way of powering the entire economy.

Oil and gas will still have a market, though a reduced one, in supplying feedstock to the petrochemical industry for making plastics, and in air and sea transportation, where renewables or batteries are unlikely to be competitive. The drop in demand for oil and gas will, therefore, lower prices and drive out high-cost producers, including most deep-water wells and tar sands.

With power increasingly coming from a large number of intermittent sources and from energy stored in batteries, and with consumers increasingly generating their own from solar panels, the utility model is fast-changing.

The process of passing power from large generators to consumers will not support the complex power systems of the future without utilities taking a more coordinating role.

For these reasons, it is possible and increasingly likely that beyond the middle of this century fossil fuels will play little or no role in producing electric power in advanced economies. And if electric vehicles gain ground, as many in the auto industry expect, the future will be largely free of fossil fuels.

The next decade will be an exciting one for the energy industry, and for those who worry about climate change and the environmental impact of our energy use.

The GREAT REBALANCING of the cost of everything – energy – is taking place – oil king for 100 year is out and planet friendly endless energy – is in. By By Oil betting to profit on oil – why its humbug.

OIL – THE 2018 COST OF EVERYTHING ELSE

OIL – THE 2018 COST OF EVERYTHING ELSE !

 

So OIL is the one and only inflation cost. Why is OIL at such a high price when 68 tankers loaded with crude store the plentiful shit off shore to make stocks on shore so they are going down?

Oh – that – is manipulation.

Today President TRUMP TWEETED on the Saudi OPEC unholy manipulation – of oil prices world wide – as an economic killer. Think about the economics:

  1. Nations and companies are awash in DEBT to re-inflate economics which has failed in fact. Outside oil price there is zero inflation. There is deflation.
  2. Higher interest rate costs mean trillions upon trillions in global debt must now refinance at enormous rises in money cost monthly as bankers hatchet growth. Companies paying these costs have to make core survival decisions to pay the interest and many can’t. Others can but they can no longer invest in growth.
  3. In this stress mix of roll over – the enormous ROLL OVER of trillions in debt from near zero interest to market rate interest – debt cost rise 100% in a single transaction. Economic growth stops on a dime.
  4. Inside this market shift ( too much central bank – too soon – too high a rise too soon – as a string of failed policy causing all wars since 1907 and no central bank end in failed policy in sight ) – oil is now rising as the cost of everything that moves is packaged and 11,000 products made from oil such as fertilizer and pesticides for crops and plastic and containers too many in industry to name here . The cost of everything is soaring as the cost of debt is rising not 10% not 20% but by 100% in a single 18 month period. How can that work?
  5. There is no shortage of oil. THE WORLD ID DROWNING IN OIL. A gang – a criminal cartel – has created a tax upon the food security and safe haven of the entire world of 7 billion so that elite click – can already fantastically wealthy now become even more fantastically wealthy by MANIPULATING THE PRICE OF OIL in world markets. This is a crime against humanity.

Donald Trump called it for what it was today in one tweet and oil went DOWN.

Oil is going to crash late this year from the 75 dollar market to the 50’s and stay there for a decade. OIL is going to become market priced and the cartel is going to be a boys private club – without influence. OPEC is a tiger that has been declawed economically and wears rubber teeth. Its over economically for OPEC but they are drunk today at the money bar before the crash they created occurs.

Economics always rebalances from abuse – always.

Today the DEBT abuse and the Manipulation abuse in world markets is what must moderate. If it does financial growth with NO NATION LEFT behind will unfold inside the new cooperation.

Cooperative Capitalism will slowly replace all forms of competitive capitalism and communism – as global humanity – celebrates versus punishes human diversity – and finally develop an economic system that is inclusive versus preclusive and which is regulated to preclude unwanted boom bust cycles. Our blogs and our published GPS on COOPERATIVE CAPITALISM the book REDEMPTION THE COOPERATION REVOLUTION is a worthy read for leaders who wish to step in front of the revolution taking place.

Today world war III is unfolding in economic markets – currency – oil=- trade and the war is digital and software based. In the future a shooting war is likely if we all don’t get the economics right.

Today OPEC is harming the world of nations for their own greed and gain. If they remain criminals against humanity – 7 billion of us will cease trading with them – capital will collapse in the end but they don’t see it today as possible.

America the largest oil producer in 2018 is sampling its light crude so much easier to refine with higher refiner profits – in nations world wide that used to be loyal OPEC clients. The market share wars under the two year “Puppy King” have failed and OPEC is losing a trillion dollars of Business FOREVER as plants retool for American Crude – steady lower cost and lower cost to refine – no brainer economics.

Russia and IRAN must leave OPEC to secure their market share.

The Puppy King keeping OPEC ever rising in price has now brought President Trump into the public today on TWITTER saying – FOUL BALL – bring those phony oil prices down so nations have time to recover economically – like 20 years of time not 20 weeks.

Expect more volatility in oil as the blood bath is those holding long and now seeing oil not going up to 100 dollars but sinking down to 50 dollars. OIL SHORT?

The BIG SHORT THIS SPRING FOLKS is oil. Fortunes will be secured betting against OPEC and the PUPPY KING.

Eventually when sufficient trillions have been lost due to failed SAUDI POLICY on oil – a day of economic reckoning is going to take place in GULF WORLD. Trust me on that unfolding reality.

Berny Dohrmann – INVESTMENT BANKER ECONOMIST applauding President Trump today – just what the market required – the truth.

OPEC – IS IT FALLING APART COMPLETELY IN PANIC ???

OPEC – IS IT FINALLY NOW FALLING UTTERLY APART 

 

Opec Members have simply had it with Saudi and Opec failed policies. So lets look at the failed Saudi OPEC Policies over the period 2014 to now:

 

  1. 2014 oil is $ 120 dollars a barrel due to cartel manipulation of price.
  2. American Shale Oil rose to shatter OPEC monopoly and influence bringing cheaper easier to refine crude to markets and stealing OPEC customer market share.
  3. To crush the American Oil Shale industry OPEC led by Saudi turned on the spigot to all time record flood the market with oil. This shattered the price to 39.00 dollars from 120 dollars a price SUPER CRASH of oil now in massive over supply of demand ( a failed policy ) – we are talking a crash of almost 90% of the price of 2014 by failed Saudi policy.
  4. This created a lower profit for shale from America which rose from 2014 from two million barrels a day to 10 million barrels a day from 2015 to 2017 – a short time to become more influential than OPEC. Today Saudi cuts supply in November by 600,000 barrels a day at their target price of 60.00 dollars ( which utterly failed ) losing three billion dollars a day to force their own customers to leave.
  5. Russia and other OPEC members are losing market share to customers buying now from America and non OPEC producers who supply draw’s OPEC. Their failed policy to REBALANCE OIL MARKETS which means to manipulate a phony supply demand price cartel tax on the peoples of the world – is seen for what it is – criminal taxation of the development nations of the earth. OPEC is shattered and shattering on pure economics.
  6. OPEC members are cheating. No OPEC member wants to follow the idiot  Barkindo and his failed Saudi jaw bone with dentures and no teeth as OPEC no longer controls sufficient supply to do anything but to pay a trillion dollars – which they have to lose their own market share.
  7. OPEC sought to CRUSH SHALE PRODUCTION by lowering price so they could not producer. American invention used technology to make profits at the lower price and took the oil drilling rigs and shoved that rig right up Opec’s economic ass hole. Which is bleeding red ink in all Opec nations. They are in the RED and bleeding red ink if they subscribe to opec membership and follow the  Barkindo idiot savant economic plan of the most hated oil minister in 100 years. Saudi has lost the war by failed policy.

The market knows this.

The market is smart.

The market knows the MARKET SHARE WAR has been won by America and non OPEC member production.

Today –  Barkindo on his prayer rug – blinked before Allah and the entire world. Making the King of Saudi Arabia look even more enfeebled than he is. We caution the IPO coming from SAUDI is going to end up in falling market share and falling prices and failed policy the worst IPO loser of the century. Watch as time passes on that item.

So today what took place that changed everything? Again look at the history.

Barkindo oil minister sets up a failed plan to crush American oil Shale Production.

Last WEEK not sometime in the distant future the Saudi King from Russia and  Barkindo the idiot economic failure for Saudi and Opec – stated in the press – WE HAVE NO CONCERNS ABOUT AMERICAN OIL SHALE PRODUCTION.

Today a week later what does the PANIC we told you was REAL in OPEC tell you?

TODAY  Barkindo SAID – TO OUR FRIENDS IN AMERICA SHALE PRODUCTION ( WE TIRED TO CRUSH OUT OF BUSINESS IN 2015 2016 AND 2017 WITH ABSOLUTE RUTHLESSNESS ) – HEY COME ON – JOIN US TO REBALANCE OIL AND CUT BACK SO WE CAN GET THE HIGHER PRICES WE WANT CARTEL MANIPULATION ON VERSUS MARKET SUPPLY AND DEMAND IN FREE MARKETS THAT AMERICA STANDS FOR. HEY COME ON JOIN US YOUR ENEMY. CUT BACK AS WE HAVE NO BULLETS OR OPTIONS LESS. AND IF YOU DO NOT JOIN US – WE THE RED INK GOING BANKRUPT NATIONS PRODUCING – WE WILL DO SOMETHING” DRASTIC IN 2018 SO YOU BETTER JOIN US – WITH THAT THREAT LIKE A TRUMP TWEET ON THE TABLE. HE WE ARE NOT IN UTTER STAMPEDE PANIC MODE WHERE OUR MEMBERS ARE ALL LEAVING AND OPEC IS BREAKING UP BUT OUR LAST CARD IS HEY AMERICA WILL YOU JOIN US AND GIVE UP FREE MARKET VICTORY TAKING OUR CUSTOMERS FROM US FOREVER AND RETURN THEM TO US AND STOP TAKING YOUR BILLIONS WHILE WE LOSE OUR BILLIONS – IS THAT OK AND WILL YOU DO THAT TODAY FOLKS?

 

NOW  Barkindo is an absolute idiot economically. He has cost OPEC its entire forward membership. OPEC IS FALLING APART. Members are going to leave to preserve their economics and their economic market share. IF they don’t leave they will lose market share ( at any price ) and never get that market share back.

Nations and customers are FURIOUS at the manipulation. They do not want REBALANCING of Energy at 120 dollars a barrel by artificial greedy manipulation of the few against the many. They OPEC members need to pressure market share – making profits at any price by selling more not less oil.

Oil is GOING TO BE IN SURPLUS and Saudi has lost the market share wars. They are going bankrupt at todays’ price due to their internal budgets, failure to crash those budgets when oil price crashed, and they now long term must adjust – and if the continue to cut back by billions a day – they accelerate their own bankruptcy as OPEC members. That is economics 101.

Today OPEC blinked.

Barkindo on his prayer rug asked Allah to inspire America ( Christians by the way ) to STOP SHALE OIL PRODUCTION which is doing what?

  1. Shoving up OPEC’s ass for trying to destroy the American industry.
  2. Beating OPEC at their own game and trashing OPEC on the score board.
  3. Controlling global market price splitting oil markets Into two prices – phoned OPEC pricing at 57 dollars a barrel down from 59 and American pricing at 49 dollars a barrel dropping from 54 for a day or two.
  4. Raising oil market share to 10 million a barrel and rising to 20 million a barrel a day and OPEC knows that – OPEC knows America has the largest oil reserves on earth making OPEC look like a dying lake.
  5. American Oil Shale industry is making the dollar stronger – rebalancing unfair trade with the world in the American trade export accounts and fast and forever taking MARKET SHARE from OPEC with easier to refine oil and cheaper oil and this victory for America is endless.

Asking a FREE TRADE NATION to cartel manipulate prices to penalize the development world from China to Africa for the advantage of some Gulf economic failures trying to monopolize oil like the 1970’s embargo – is not repeatable. Turning oil off would only make America absolutely dominant in market share. THE NON OPEC MEMBERS are prospering at the enormous cost of the FEW AGAINST THE MANY – the failed economic policy of OPEC since 2014 and before frankly.

OPEC has failed in all its models.

OPEC had its opportunity for success and by its own policy has set its people in a struggle now economically that will not be easy to get out of and will consume decades to REBALANCE not oil but their own economies. Russia needs to DEPART FROM OPEC for one reason. SURVIVAL and the prosperity driven by its own return to market share trashing the relationship with an economic child  Barkindo who has bankrupt ideas bankrupt IP and today showed panic on his prayer rug with his global admission of utter total failure for the Royal Family.

If I where the Kings son and heir apparent I’d use the phrase from Alice and Wonderland  Barkindo off with your head. How many trillions does one man cost a nation and his failed team and advisers?

We offered to set them on the right path. We hand carried proposals to the heir. But no one listened and now we have the failure at such extreme panic that OPEC ‘begs on its knees” for AMERICA to cut back and join OPEC.

Now this causes the market share war and market markets to simply laugh over two martinis lunches from New York to Hong Kong to London. The press and comedians are going to have a field day with this one. I hope this blog reaches Saturday Night Live writers – hey send it to them.

Barkindo one man has made OPEC a joke to the world.

Barkindo one man has destroyed OPEC influence and relevance to oil markets.

Barkindo has shattered OPEC confidence its only membership glue.

Barkindo has OPEC members leaving in droves as you will see in 2018.

Barkindo destroyed OPEC.

Barkindo one man announced the end of OPEC today with his prayer rug on his knee plea to American shale Producers to please oh please cut back to rebalance ( manipulate price for our cartel profit against the world ) and can you do that today as we are bleeding to death over here at OPEC.

There is no tweet – no moron comment – no history like today with this one man  Barkindo who will shatter CONFIDENCE in the ARAMCO underwriting and IPO in free fall pricing like oil itself. To say the plans of a nation are destroyed and shattered by only one man is to understand the failure of  Barkindo policy to oil markets.

He rolled the dice and he lost.

America gutted him and OPEC intestines are falling onto the pavement and its 120 degree’s over there.

LOSER.

Barkindo is a moron and a loser in classic economics so predictable from each step by economics 101 and any text book. This is not rocket science.

So OPEC customers want to pay less not more for oil.

OPEC customers are furious the cartel wishes to tax them for their own profit account.

Opec customers have choice now and do not need OPEC now or in the future.

OPEC customers are strategically buying around OPEC and moving supply long term and now short term to NON OPEC suppliers.

The HUGE WINNER of the MARKET SHARE WARS with OPEC hammering them all along that path is AMERICA.

The United States of America is NOT going to JOIN OPEC or HELP OPEC and only an idiot would do what  Barkindo the moron did today – which is a public display of ABSOLUTE OPEC PANIC as they free fall beyond any control and have no end in sight how to repair their own internal budget as customers are leaving them now as a RUN on the OPEC BANK.

The longer members oil bankers stay with  Barkindo and the OPEC OIL BANK the more they will lose depositors running on their accounts. So the way to secure oil banker deposits is to publicly announce you are LEAVING OPEC and focusing on your customer services at market prices satisfying customer need not  Barkindo need.

The longer you stay in the failed OPEC OIL BANK the greater the velocity of market share RUN ON YOUR BANK will become because your OPEC BANKING CUSTOMERS are FURIOUS at your interest charges for your product and are all moving to full oil banking services with far lower interest charges for the future.

Barkindo its economics.

So today was the final PANIC. PANIC is public.

Everyone knows. EVERYONE.

OPEC has lost its CORE VALUE AS A CARTEL and now BEING an OPEC member is toxic for your nation and future. Day by Day you are loosing so much MONEY until you announce to stop the RUN ON YOUR OWN BANK you are leaving the TOXIC FAILED OIL BANK now sinking into historic oblivion and obsolesce.

Barkindo the moron failed to understand that economics always rebalances from market manipulation and abuse. Debeers if fighting mass manufacturing of perfect man made diamonds – always plenty and never rare with prices only controlled by cartel. Now price is beyond cartel control as Diamond markets deflate and rebalance. Oil is rebalancing to economic market forces of plentiful supply as the earth frats and craps oil and gas – there is no scare supply. Or costly supply.

ENERGY the COST OF EVERYTHING has taxed nations to the bone by artificial greed and cartel pricing. OIL “IS” rebalancing and OPEC has nothing to do with it. Saudi the “swing producers” are loosing 600,000 barrels a day – where those customers are moving to America – and Saudi never gets that business back. They are not rebalancing anything but their own bankruptcy and budget.

Oil is in free fall as we reported.

OPEC is going to shatter and oil price is going to range 35 to 45 dollars.

OPEC pricing is dead on arrival.

Barkindo soon will be too we suspect. One man costing trillions to oil bankers from a totally failed policy. When does the money hold  Barkindo responsible and install a customer service market share minister as the OPEC model is failed.

It is every nation for itself as oil bankers and OPEC members are such losers for staying in the most failed cartel in history. INCREASINGLY OPEC oil bankers are seen as pure criminals trying to regain a tax on the poor and the development nations taxing billions trying to rise to full partnership but unable to do so because a few profited from 120 dollar a barrel of energy cost for their own greed at the enormous cost of nations developing as ENERGY IS THE COST OF EVERYTHING ELSE.

Today solar – wind – tidal – and natural gas which burns clean and makes lower electric cost – is with atomic power – fueling the world energy grid away from oil and more and more transportation is moving from oil to electric as demand peaks are going to fall off a cliff and oil can never be manipulated by OPEC or any supply cartel as a crime really – because today the supply oil bankers are not OPEC members and are the dominant and rising market share retiring OPEC oil banker market share the longer they force their own customers to RUN ON THEIR OIL BANK.

So now you know the truth of 2014 to October of 2017 when  Barkindo on his beggger prayer rug threw in the towel for his 82 year old King and stated – HEY AMERICA YOU CUT BACK so we can rebalance ( criminally move prices to high so we can stay out of bankruptcy as nations ) and America – having been hit by economic motors and missiles from OPEC for years – watched the economic mushroom cloud over  Barkindo – had a good laugh and invested as never before in MARKET SHARE SUPPLY GROWTH to utterly run on OPEC OIL MEMBER BANKS and destroy what remains of their final existence.

Barkindo gambled and lost the entire war.

America won.

The United States is so much STRONGER at 3% growth now rising to even higher – because of our THANK YOU to  Barkindo the moron economists and oil minister that personally DESTROYED OPEC as we reported here – for some time with data and the press fails to report the news with OIL advertising and underwriting for all press the ultimate spin to information on the earth.

Toxic.

Environmentally the one and sole cause of CLIMATE CHANGE.

Killing life on earth for greed and profit.

Being slowly retired.

By demand…..

Market supply demand and customer service define oil markets from NON OPEC membership today.

Those who leave OPEC will prosper.

Those who remain will be in economic pain that becomes unimaginable.

Economics leading politics or politics leading economics.

Economics always wins.

Barkindo and his tribe always lose.

Today OPEC is one word – LOSER !

Berny Dohrmann – You can read the tea leaves properly now on OPEC

OIL – OPEC IS WRONG & THIS BLOG IS RIGHT

FOR TWO SOLID WEEKS OIL HAS GONE DOWN DOWN DOWN – THEIR VERY OWN RABBIT HOLE ! 

Many of my readers are making BIG BUCKS using this Blog to bet against oil rising. Many sold short and won big.

Opec has for two weeks – spending millions on PR world wide – sought to manipulate prices higher. They announce in pre announce that an agreement to cut back to deepen cut backs to make cut backs longer is coming. Not here yet but coming. Everyone in OPEC is on board. While during this same period the price of oil drops like a drunken sailor. Why? Because the cut backs are already made up by non OPEC producers and even more. The supply is rising. During the peak user period of the year. Trump is releasing half a trillion barrels of oil from USA Stockpiles our nation no longer requires at all.  The SURPLUS – supply over demand – is not abating. In this market space the strategy is securing MARKET SHARE. OPEC has lost it all. Utterly. Completely.

WHO IN OPEC UNDERSTANDS ECONOMICS 101? Answer no one.

Now pretend you are a 20 year customer of OPEC. All you see is OPEC trying to manipulate the market price YOU PAY as a loyal OPEC customer upward – ever higher to your people – a tax on your entire economy world wide – as a loyal customer – and they now tell you “hey” we are going to sell you LESS and we want you to PAY MORE for that less – so even though we sell you LESS we make the same. That sound fair to you guys?

DO YOU UNDERSTAND HOW ANGRY CHINA AND ASIA IS AND MANY OTHER SOVEREIGN NATIONS ARE AS OPEC SEEKS TO COST THEM FOR CORE ENERGY ENORMOUS PRICE RISES ARTIFICIALLY FOR THIER OWN SELFISH GREEDY AGENDA BECAUSE OF THEIR DEBTS AND FORWARD CONSTRUCTION BURDENS? OPEC CAN NO LONGER SURVIVE AT TODAY’S PRICES. DO YOU KNOW HOW ANGRY THOSE WHO KNOW THIS ARE WITH OPEC RIGHT NOW? THEIR CUSTOMERS ARE FURIOUS WITH THEM. DO YOU GET THIS PART OR IS IT BEING MISSED? TRUMP IS LAUGHING LIKE SANTA CLAUSE – HE GETS TO WATCH THEM SELF DESTRUCT.

It is like an OPEC CARTOON. The characters are hysterical. Who ever thought up this OPEC strategy as POLICY  should be taken out in a sand dune  and shot. The cost to OPEC is so massive it is beyond calculation.

OPEC Strategy is loosing MARKET SHARE and loosing customers who now are HATING OPEC. They HATE being a victim of price manipulation. They are rewarding  OUTSIDE OPEC the lowest NEW  price provider, with the best oil channels, within stability and security not possible in the OPEC region of never ending ISIS and related terror ripping the nations apart. THE USA IS THE ENORMOUS WINNER economically. OPEC is the incalculable loser economically. The largest WEALTH SHIFT is under way in 2017 modern times has yet to experience. THE USA is winning beyond anyone’s expectation because OPEC handed the USA that victory by stabbing themselves.

Buyers of OIL are not only NOT AMUSED by FAILED OPEC POLICY that are UNFORGIVING. The Market SHARE WAR is economic. Opec is paying out untold money by:

  1. Members selling less. You have no idea how much less.
  2. Prices dropping so they sell less at less. Double whammy.
  3. Market share loss – their customers are geo shifting because of failed OPEC policy and this 1 -2-3 will Cost OPEC members a trillion dollars over 60 months. Triple Whammy to their economic planning. Everything is now in free fall for OPEC including RUSSIA. 

So make your MARKET BETS accordingly. OPEC is losing market share that is now on a bob sled race to the BOTTOM like  at the OLYMPICS of failed economic policy, with no end in sight but their own inevitable financial economic crash. Their customers behind their back HATE THEM for price manipulation efforts.

All this started to bring oil price down so that shale producers in North America would go bankrupt. During this time technology made SHALE PRODUCERS profitable a few years ago at 60 dollar oil now profitable at 37 dollar oil and that profit foundation is dropping like a stone. Soon massive North America unlimited oil supply will come on line profitable at $ 27.00. OPEC made an error so large they can not recovery.

THINK ABOUT THE WEALTH SHIFT going on .

Rebalancing oil market means the world pays so much more for a plentiful versus scare asset due to cartel controls. Those controls once dominate are now technically and economically and even politically fully  dismantled. OPEC is a PURE JOKE today because the market fully bored with OPEC has now seen OPEC lose all authority credibility and integrity by LIEING TO THE MARKET PLACE and by losing it entirely in the BOARD ROOM. Their policy their THINKING is flawed.

OPEC has now failed UTTERLY.

WORSE OPEC LIED.

IT is the LIE that the market will never forgive them for.

So there you are. If they keep it up some OPEC members go bankrupt.

OPEC? As a unity institution is now in discord.

IT IS EVERY NATION FOR ITSELF in commodity service to their customers. Customer SERVICE is as important as price. OPEC has failed on both. Their customers are leaving forever. TRUST is destroyed with OPEC.

That is the real story and OIL is not influenced or control by OPEC in 2017. OPEC reset the market and now the cost to OPEC is survival.

That is for the customers and people of the world …of the 1001 Arabian Nights Fairy tale known as :

A VERY HAPPY ENDING….. SINBAD !

Berny Dohrmann – Keeping Oil Economics in your side bets today

PS: If you drive a car or use electricity spread this BLOG to your tribe. They need to KNOW why pump prices are in free fall this weekend.

OPEC IS A WHALE IN IT’S OWN SAND PIT – DYING

OPEC – THE WHALE IN THE SAND PIT

 

We told you now for two years OPEC is dead.

Opec is a giant whale inside a huge dry sand lake at 120 degrees this summer in the Gulf Dunes, with no water left, moving only slightly now, in last gasps.

Economically Opec nations borrowed and scheduled building developments for their nations and jobs, based upon 120 dollar a barrel oil. OPEC manipulated this enormous tax upon all peoples of the world as OIL is the cost of everything. No Congress investigated monopoly or price fixing or price gouging no one did anytime because the related industry partners made so much money.

All the while the world is drowning in oil.

Oil is not scarce. That is a PR promotion like Debeers for Diamonds. Oil is plentiful and most of it is under the seas and yet to be discovered in unlimited quality.

Oil is replenishable. The WORLD FARTS oil and gas.

We discover more oil, than we require each and every five years.

Old wells are full as the earth is making new oil.

OIL is plentiful and should be cheap.

GREEDY MONOPOLIES get control of supply and fix prices to harm nations and the development of good lives for billions. It is not right and the economic system that allows such consolidation is a broken system. We can fix our economic global system ( itself insane ) and we must for the unborn generations to follow us.

OPEC is market force dead today.

We told you the JAW BONE effort to manipulate oil prices up to levels OPEC seeks to INFLUENCE AND CONTROL which should be a market price fixing that is A CRIMINAL FELONY in all nations of the world, baring the price fixers from any world trade access, or without tariff’s, is sane – and all such JAW BONE last gasp efforts would fail.

WE TOLD YOU that OPEC is paying billions upon billions in lost sales lower output paying this untold billions in cost yearly to force their own customers to move that market share in the MARKET SHARE WARS Opec is only slowly beginning to understand – is the economics – as OPEC has lost and is losing ever more MARKET SHARE forever.

The experts all conclude now that:

THE FALLING COST OR PRODUCING OIL WILL FORCE YEARS AND YEARS OF SOARING AMERICAN OUT PUT AND PRODUCTION ALONG WITH OTHER NON OPEC PRODUCING NATIONS VASTLY MORE THAN OFF SETTING OPEC CUT BACKS – KEEPING MARKET PRICES DOWN – AND ASSURING OPEC MARGINALIZATION FROM THIS POINT FORWARD IN HISTORY AND FOREVER IN TIME.

OPEC is as we first reported and so accurately irrelevant.

SO OPEC announces their rag tag group of producers with PR they are acting like SANTA CLAUSE to stabilize prices – will NOW as a cartel insane monopoly working against lower cost energy supply for the entire world, seek to artificially raise prices by cutting their own output. Output already off set by just America itself.

So it is insane economics. It does nothing but LOOSE MARKET SHARE FOR OPEC MEMBERS LIKE RUSSIA. Odd thinking.

As they make the announcement JAW BONING PRICE UP – that this new output cut will last far longer…the market GOES DOWN.

Like ALICE IN THE RABBIT HOLE – the price is going down…DOWN….DOWNNNNNN ? Get that OPEC the world is drowning in OIL and the only item you have is market share policy which YOU are now losing your best customers who HATE YOU for the price manipulation to their nations. Good job in customer care and service in the economic spectrum. ( NOT ! ).

So now this summer the market HAS SHIFTED FOREVER.

However President Donald Trump is not amused by the insane efforts to self enrich their own game at the expense of the entire world by artificially raising market price on the COST OF EVERYTHING COMMODITY …..OIL its production packaging movement and manufacturing into over 1100 products for which there is no replacement.

So President DONALD TRUMP announced – hey if you world robber Barron bandits will hold the world hostage to price here – in your insane model…let me add to new items into the mix of world oil prices:

  1. First I will pass laws to make sure America produces enough oil we stop buying your oil as your largest customer once 67% of our energy from you now 27% and falling rapidly to zero – so THAT happened.
  2. Second – ah hmmm – I”m going to balance my own budget a bit by selling at this time as oil spikes up from your JAW BONE PRESS efforts – almost 1 TRILLION BARRELS ( not a cut back of 1 billion barrels.a day already made up by American recent production output gains ) but ONE TRILLION BARRELS ALMOST in our USA oil reserves – because we don’t need them with AMERICA producing so much at that level – I’ll sell say HALF to make sure YOU LOSE as an illegal criminal cartel. HOW does that WORK for you guys? Hey how you gonna pay for the weapons your selling us if you don’t pressure your market share?

Trump is letting the market place teach OPEC as nothing else seems to work.

Opec needs to scrap any forward agreement and secure its MARKET SHARE in the MARKET SHARE WARS and bring back customer service and massively move to A PLENTIFUL UNLIMITED COMMODITY and within market pricing make money – pamper its client market share and protect it. Anything less is going to end up costing OPEC its stability.

So lets summarize in DUMB DUMB AND DUMBER ECONOMICS:

…ah our oil  demand is falling world wide…the supply is rising world wide …there is a glut and over supply we can not bring down …so lets cut back our sales and stop supplying to our very best customers like say Asia and the USA by quota’s we just set up for no reason at all ….so we can raise our oil  cost to our very best customers by a lot of money  so they have to pay us more billions yearly  so we can remain a cartel price fixing oil world wide for our own monopoly exclusive benefit against the world social values and the market values and to work against the  benefits of our own clients ….what is not to love?……. ( sane or insane economic thinking )?

The PR justifies these CRIMES AGAINST ALL HUMANITY with press that is sinful, untrue, and without any purpose but to protect the cartel for price gauging the entire world.

OPEC is DUA – DEAD UPON ARRIVAL IN 2017. DO NOT GO LONG IN OIL those that read hear and act – have been making fortunes. Those who read and just think this is all superficial – and invest as normal well your tribe – NOT SO MUCH. NOT SO MUCH at all.

Being right since the 1980’s is why so many major players share and read this blog – the track record has been very isolated in any match anywhere in the information and foresting world. If you wish to remain ahead of what is REALLY GOING ON OUT THERE – why my my – you have arrived as you subscribe make a favorite and check back to update YOURSELF and your CIRCLE.

Hey with the new glasses I’ve put on you – CAN YOU SEE THE OPEC WHALE IN THE DRY SAND PIT DYING NOW????????

Berny Dohrmann – On the economics of Oil.

PS: Oil nations need to have our team on retainer – but hey – we sent them proposal’s and their failure to act has cost them a billion dollars for the dollar they would have retained us for. We just sit and wait to help a community we actually love and have worked in for 50 years – to wake up to the economics. The problem is they graduated from Ivy League Universities and Franky their theory models are failed and the rapidly evolving new model’s of SUPER CHANGE they have no clue about.  NEW ECONOMICS – hey we wrote the book on it – REDEMPTION THE COOPERATION REVOLUTION at Amazon for awake readers.