Thursday, June 4, 2020

‘Moving into End-Game’: Production Shut-Downs Cited as Next Chapter of COVID-19-Driven Oil Crisis

from Sputnik News:

The ongoing coronavirus pandemic, which has halted economic activities and travel, has crippled demand for crude, resulting in an oil glut and sending prices plunging, heralding more shocks to the industry.

Amid the destructive economic fallout from the COVID-19 pandemic, production shut-downs in the petroleum industry are imminent, writes Bloomberg.

FIRST SHALE OIL DOMINO TO FALL: More to Follow

by Steve St. Angelo, SRSRocco Report:

In a stunning news release, Continental Resources, the largest shale producer in the Bakken, is shutting in most of its production in the region.  That is one hell of a lot of output to shut-in as Continental Resources was producing over 200,000 barrels per day in the Bakken at the end of 2019.

From the data on Shaleprofile.com, Continental Resources had over 2,200 wells in the North Dakota and Montana Bakken producing oil and gas during February this year.  How many wells will Continental’s Harold Hamm shut in the Bakken??  And how many will be brought back online, at to what cost, when the market recovers??

U.S. Gasoline & Jet Fuel Days Of Supply Explode To Record Highs As Demand Collapses

by Steve St. Angelo, SRSRocco Report:

Unfortunately, for the already vulnerable U.S. Energy Market, the worst is still yet to come.  As one energy analyst forecasted, we may see a negative $100 for oil a barrel of oil.  While this may sound totally insane, domestic oil producers still haven’t cut anywhere near the amount necessary.

As the U.S. Shale Oil Industry continues to pump more than 7+ million barrels per day (mbd) of oil, the availability of storage capacity dwindles considerably each passing day. And with the 50 million barrels of oil from Saudi Arabia heading to the United States, the energy situation will go from BAD to WORSE and then to ABSOLUTELY HORRIBLE.

A Prepper’s Primer on Renewable Energy – Part 2

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by by Kevin R., Survival Blog:

If you are preparing a retreat to be abundantly supplied when you bug out, but are not always using and replenishing wood, make sure that the wood is protected from rain and snow. Rotten wood does not provide as much energy. Also, make sure that you know where you can get more wood, should you start living in your retreat full time. Do you own your own timber? (Good thing to keep in mind when buying land.) How will you transport your logs to your home if you are in a crisis situation? It takes several medium sized trees to make a cord of wood. You need get into it before you will fully understand the investment of energy required for a season’s worth of wood.

Crude Collapse Concerns COMEX – Craig Hemke (April 21, 2020)

by Craig Hemke, Sprott Money:

After watching front month NYMEX crude oil futures collapse into negative pricing on Monday, you should be sure to consider the possibility of an exact opposite scenario playing out one day soon in COMEX gold futures.

What happened Monday in NYMEX crude oil? It can be summarized this way:

  • The May20 crude oil contract was scheduled to go off the board and into delivery on Tuesday, April 21.

Oil Goes to Nothing with John Rubino

by Kerry Lutz, Financial Survival Network:

John Rubino returns… The price of oil hit negative numbers, a first. If you go to your local gas station will they pay you to fill your tank up. The first wave of major retail bankruptcies has started. Neiman Marcus (a/k/a needless mark-up) is expected to file shortly. The first of many. And commercial real estate is in the dumps. With bankruptcies and the shut down, no one is renting office space and companies will no doubt reduce their need after the lockdown is over. We’re heading into uncharted waters now.

Click HERE to Listen

A Prepper’s Primer on Renewable Energy – Part 1

by Kevin R., Survival Blog:

Energy is a fundamental element in a prepper’s portfolio of resources and assets, along with food, water, medical, home, land, financial, and skills. However, some urban and suburban preppers who anticipate moving to a rural area when things get dicey often under-think their energy requirements. Organizing your retreat around dependence on hydrocarbon fuels means that you must store huge quantities of combustible fuels that will eventually run out during an extended societal collapse. But if you focus your energy use on renewable fuels, you will develop a system that will last indefinitely into the future, covering a wider variety of disasters, for a fraction of the cost.

40% of Oil Producers Will Go Bankrupt if $30 Persists

by Mish Shedlock, The Maven:

Based on forward charts at least 40% of US oil producers are headed for bankruptcy.
Inquiring minds are diving into the Kansas City Fed Energy Survey by Chad Wilkerson, to get a better grip on problems facing oil producers. The results are grim.“District energy activity fell sharply during the first quarter of 2020, with our index dropping to its  lowest level since we began the survey in early 2014,” said Wilkerson. “Expectations for future activity also fell to their lowest level since late 2014, as most firms do not expect energy prices to return to profitable levels this year.”

US Crude Oil Gets Annihilated Under Targeted Saudi Attack

by Wolf Richter, Wolf Street:

West Texas Intermediate (WTI) futures collapsed 45% today from the already collapsed price, to $10 a barrel, lowest since 1999.

Under a historic destruction of global demand for crude oil, ballooning supply, nearly full storage facilities, and 20 Saudi oil tankers heading to the Gulf Coast, the price of the US crude oil grade West Texas Intermediate (WTI) collapsed unceremoniously late Sunday and early Monday. While the WTI June futures contract plunged nearly 10% to $22.60, the front-month May futures contract, which expires tomorrow and is close to the WTI spot market cash price, plunged by 45% to $10.06 a barrel Monday morning, the lowest since 1999. WTI is down about 90% from mid-2014 when it traded at over $100 a barrel: