We were told that while oil prices were high, shale oil could be produced at enough of a profit to drill, but to expensive to continue if the prices dropped.
But efficiency and technical innovation have overcome that bit of conventional wisdom as Shale Energy Insider reports:
US shale companies have increased the number of rigs in the field for the first time in nearly seven months when oil prices were trading around $70 per barrel, compared to under $60 per barrel in the current market.
The number of rigs rose in almost every main shale basin across the US according to data gathered by Baker Hughes.
Industry experts have suggested that as a result of last year’s price crash, shale exploration firms have cut their break even costs by anything up to $20 per barrel.
“As much as anything else, the rise this week is a testament to break-evens coming down just over the course of this year,” said James Williams, president of energy consultancy WTRG Economics.
“Shale is a lot more resilient than we thought it was, and it means we’re going to be able to keep producing shale oil at a lower cost than we thought we could.”
Adding rigs is the primary way to gauge whether or not it is economically profitable for energy companies to drill for and pump the oil According to one analyst, the companies have been able to streamline their operations to the point their breakeven costs have dropped by about $20 a barrel. That’s huge:
A Bloomberg analyst suggested that the cost of drilling services have fallen between 20% and 50% with break even prices in parts of the Permian and Eagle Ford below $40 per barrel.
And what does it mean overall?
Director of upstream research for Wood Mackenzie, Scott Mitchell forecast that producers could add up to 100 oil rigs by the end of the year.
“Drilling rigs and fracking require a quite specific technical workforce, and there were a lot of layoffs as a result of the drop in activity.
“We may find the supply of people becomes short very quickly if activity ramps up, leading to price increases again,” he predicted.
That’s right … jobs and less expensive gas. Of course, most if not all of the shale oil drilling has taken place on non-federal land, and the market has been able to function without a great deal of governmental interference. It is providing both employment and a very important commodity at less expensive prices. Additionally, as it lowers its breakeven point, it buffers us against volume drops as the price of oil comes lower and other sources stop producing oil. With the lower breakeven point, they’ll continue to pump past the point where they’d have quit previously because doing so is still profitable for them. That helps ensure lower prices at the pump will be more common and more stable.
The market … a wonder we need to allow to work without interference much more often than we do.
As the Obama economy continues to tank and unions become more desperate, socialism seems more attractive
Well, sorta. Union leadership apparently isn’t as comfortable with the Sanders brand of socialism as it is with the Clinton brand. Richard Trumpka, President of the AFL-CIO, sent out a memo this week:
His message wasn’t anything new for the federation’s state leaders: They know that endorsement decisions belong to the national leadership. Still, it was unusual for Trumka to call them out in a memo. “I’m not sure I’ve ever seen one before like this,” said Jeff Johnson, the president of the AFL-CIO’s Washington state labor council.
Johnson agreed that it was important for the AFL-CIO to speak with a single voice. But “there’s a lot of anxiety out there in the labor movement,” he said, “and we’re desperately searching for a candidate that actually speaks to working-class values. The Elizabeth Warren/Bernie Sanders camp is very, very attractive to many of our members and to many of us as leaders, because they’re talking about the things that need to happen in this country.”
Things like making sure unions regain their pre-eminent and privileged spot they used to hold. Oh, and free stuff! And then there’s the pension mess … something a Sanders or Warren would likely be willing to help bail out so what’s going on in Chicago won’t go on later on a larger scale in more unions:
About 1,400 Chicago public school teachers and staff are expected to lose their jobs in order to finance a pension debt of $634 million, the city announced Wednesday.
The layoffs are part of an aggressive $200 million budget cut to help finance the pension payment, which is required of Chicago Public Schools by Illinois law. The rest of the pension payment is coming from heavy borrowing, as the district already has a massive $1.1 billion budget deficit.
Rahm Emanuel is pretty sure this is everyone else’s fault for not pitching in more. Most people, other than union members and lefty politicians, know better:
Thousands of retired Illinois teachers receive a six-figure pension, and the typical teacher received more in pension payments than they personally paid in within 20 months of retirement. Most teachers retire at age 59 or younger, and the lifetime pension cost per teacher in the state is estimated to exceed $2 million. Not helping things for the state is an annual 3 percent cost of living adjustment that is fully guaranteed and totally untethered from actual inflation rates.
Or, as usual, an over-promised, underfunded benefit which the union and politicians now want to shift onto everyone else. You see, they promised it, your job is to shut up and pay up. The left only ever has one answer to this – higher taxes, fees, whatever, to fund their promises. The fact that you weren’t consulted, nor did they at all care what you might think, when this nonsense was “negotiated” never weighs into the equation.
But they’re for the middle class – or so they claim.
It is going to be fun to watch the left this year as they try to reconcile the mess this country is in with what they demand. As usual, the blame game will be in full effect as the left tries to point to everyone else as the fault even as it becomes more and more obvious, even to low information voters, that the blue model of just about everything is a failure.
But … racism! Confederate flag! Christian bakeries!
Who is one of the only groups successfully fighting ISIS and consistently winning?
If you said the Peshmerga or the Kurds, give yourself a point.
What should we, the US, be doing because the Peshmerga is, in fact, winning engagements regularly against ISIS?
Well the smart thing, and something a leader would do at a minimum, would be to help them in any way we can and supply them with the weaponry they need.
If you said that, another point.
Now, the big question – are we doing that?
If you said “no” you get 3 out of 3. If you said we’re actually working against that, you get a bonus of 1 point.
Yes, according the the Telegraph, we’ve been active in blocking needed heavy weapons shipments to the Kurds:
The Peshmerga have been successfully fighting Isil, driving them back from the gates of Erbil and, with the support of Kurds from neighbouring Syria, re-establishing control over parts of Iraq’s north-west.
But they are doing so with a makeshift armoury. Millions of pounds-worth of weapons have been bought by a number of European countries to arm the Kurds, but American commanders, who are overseeing all military operations against Isil, are blocking the arms transfers.
One of the core complaints of the Kurds is that the Iraqi army has abandoned so many weapons in the face of Isil attack, the Peshmerga are fighting modern American weaponry with out-of-date Soviet equipment.
At least one Arab state is understood to be considering arming the Peshmerga directly, despite US opposition.
The US has also infuriated its allies, particularly Saudi Arabia, Jordan and the Gulf states, by what they perceive to be a lack of clear purpose and vacillation in how they conduct the bombing campaign. Other members of the coalition say they have identified clear Isil targets but then been blocked by US veto from firing at them.
“There is simply no strategic approach,” one senior Gulf official said. “There is a lack of coordination in selecting targets, and there is no overall plan for defeating Isil.”
Another in a long litany of failures by this administration. We have both the means and a reason to supply the Kurds with the weaponry they need, and yet ….
As mentioned yesterday, Jimmy Carter is right.
Failure of leadership.
“On the world stage, I think [Obama’s accomplishments] have been minimal,” Carter said. “I think he has done some good things domestically, like health reform and so forth. But on the world stage, just to be objective about it, I can’t think of many nations in the world where we have a better relationship now than when he took over.”
Carter declined to blame Obama for the U.S.’s dismal foreign policy outlook, stating simply that circumstances “have evolved.” However, he did state that the U.S. had suffered a reversal of fortunes in foreign policy since Obama took over from President George W. Bush.
“I would say the U.S.’s influence and prestige and respect in the world is probably lower than it was six or seven years ago,” Carter said.
Ya think?! At the moment I’d say our “influence and prestige and respect” in the world is at its lowest since the turn of the century — the last century.
Carter, often sighted as the worst foreign policy president we’ve ever had … until Obama … is probably feeling a little frisky now that it is apparent even to him.
He’s bound and determined to ensure his “next to last” position in the “worst president” category now that Obama’s position as the worst seems assured.
I pretty much agree with Andrew McCarthy:
Already, an ocean of ink has been spilled analyzing, lauding, and bemoaning the Supreme Court’s work this week: a second life line tossed to SCOTUScare in just three years; the location of a heretofore unknown constitutional right to same-sex marriage almost a century-and-a-half after the adoption of the Fourteenth Amendment; and the refashioning of Congress’s Fair Housing Act to embrace legal academe’s loopy “disparate impact” theory of inducing discrimination.
Yet, for all the non-stop commentary, one detail goes nearly unmentioned — the omission that best explains this week’s Fundamental Transformation trifecta. Did you notice that there was not an iota of speculation about how the four Progressive justices would vote?There was never a shadow of a doubt. In the plethora of opinions generated by these three cases, there is not a single one authored by Ruth Bader Ginsburg, Stephen Breyer, Elena Kagan, or Sonia Sotomayor. There was no need. They are the Left’s voting bloc. There was a better chance that the sun would not rise this morning than that any of them would wander off the reservation.
Indeed, if there is any speculation it centers mostly around Justice Kennedy and now, of all people, Roberts. There’s not much of a doubt on any case that comes before the court as to how either the liberal bloc or the conservative bloc will vote. Up for grabs, apparently, are only two votes. And you can expect absolutely tortured verbiage and logic from those two (and others who believe in a “living Constitution”) in order to justify their vote.
Elizabeth Price Foley wants to lay it off on liberals:
But we all know why Thomas, Scalia, Alito and, oh yeah, Roberts, ended up on the Supreme Court. The conservatives believe “law is politics” just as much as the left – they just haven’t been as successful at it recently. There is a reason there are veritable political wars about who gets appointed to the highest bench in the land. This isn’t some sort of scoop.
It’s a pity though. You expect politics in Congress, which is why it’s reputation is so … low. You want a statesman in the presidency. And you expect justice and law from the judiciary.
Instead, we have nothing but politics from all three.
And they wonder why the people’s view of government is at a nadir?
We all know what “politics” means … and it has nothing to do with integrity, justice, the law, statesmanship or what is best for the citizenry.
Everything cool. All went well.
Back on Monday!
Apparently they’re no longer a judicial body which weighs the arguments, compares them against the law and finds for the intent of the Constitution. Or said another way, the real Constitution is dead – long live the “living Constitution” that is full of goodies for which others pay.
How do I know this? Easy:
Chief Justice Roberts wrote that the words must be understood as part of a larger statutory plan. “In this instance,” he wrote, “the context and structure of the act compel us to depart from what would otherwise be the most natural reading of the pertinent statutory phrase.”
Or said another way, to hell with law and the Constitution, the 6 of us have decided this is a good thing and we’ll read it any way we want too. Pay up, suckers.
I saw where someone said the court finally moved left.
Folks the court moved left 10 years ago with Kelo.
It’s just taken a while for some people to realize that.
As the delegates left the building, a Mrs. Powel of Philadelphia asked Benjamin Franklin, “Well, Doctor, what have we got?”
With no hesitation, Franklin replied, “A republic, if you can keep it.” Not a democracy, not a democratic republic. But “a republic, if you can keep it.”
And, we couldn’t.
Victor Davis Hanson makes the point that what once began as an exceptional experiment in unity and was often dubbed “a melting pot”, has now become a grouping of humorless and easily offended factions always trying to claim the mantle of victimhood:
In the last half-century, Americans have increasingly tended to emphasize race and tribe in promoting “diversity,” rather than seeking to strengthen the more tenuous notion of unity with their fellow citizens. We have forgotten that human nature is fond of division and must work at setting aside superficial tribal affinities to unite on the basis of core values and ideas. Symbols, flags, organizations, and phrases that emphasize racial difference and ethnic pride are no longer just fossilized notions from the 1960s; they are growing fissures in the American mosaic that now threaten to split the country apart — fueling the suspicion of less liberal and more homogeneous nations that the great American experiment will finally unwind as expected.
Symbols, flags, organizations, and phrases that emphasize racial difference and ethnic pride are no longer just fossilized notions from the 1960s; they are growing fissures in the American mosaic that now threaten to split the country apart — fueling the suspicion of less liberal and more homogeneous nations that the great American experiment will finally unwind as expected.
So the answer? Dump all the symbols and organizations that divide. Drop the race exclusive organizations like La Raza and the Congressional Black Caucus. Either that or keep your mouth shut when someone starts the National Association of White People.
You can’t have it both ways. And remember something that is indeed unique about this land:
In an America that was originally founded by mostly Northern European immigrants, a Juan Lopez from Oaxaca is freely accepted as a U.S. citizen in a way that a white Bob Jones would never fully be embraced as a citizen of Mexico, a country whose constitution still expressly sets out racially chauvinistic guidelines that govern immigration law. Someone who appears African or European would have a hard time fully integrating as a citizen in Chinese, Korean, or Japanese society, in a way not true of Chinese, Koreans, and Japanese in America. The world assumes that in America a president, attorney general, secretary of state, or Supreme Court justice can be black; but it would be as surprised to find whites as high public officials in Zimbabwe as to find a black as prime minister or foreign minister in Sweden or Germany.
We are Americans and we come from all sorts of places and backgrounds, but when we come here we do indeed assimilate into the dominant culture?
Why? Because it is that culture (which, by the way, is borrowed from some of the best of many different cultures) that has made this country both exceptional and great. It’s is the “go to” place for those looking for a better life. Our illegal immigration problem points to that.
But if the left has its way, we’ll all hyphenate our “american” identity, claim victim status and work to divide the polity into bickering hate groups who find everyone else (to include those back through the centuries) at fault for their status.
Were there wrongs committed in history against various races and ethnic groups? Of course there were. But we don’t live in that era. What counts is where we are today. If those wrongs no longer exist then any progressive worth their salt should be claiming … progress. If you’re as old as I am, you don’t have to claim it – you’ve seen it up close and personal. But instead of touting the progress, progressives are the ones leading the charge to divide and weaken. To make us all “victims”.
Quite being victims. Victimhood is a choice. Grow a backbone and say no to the negativity of that nonsense. Drop the symbols and groups that emphasize race and/or victimhood. Become Americans. Work together.
See Charleston for how it is done.
Most of the country and the world have been touched by the forgiveness granted by the families of the victims of the Charleston church murders. In an act that lives up to their faith, the families have forgiven the murderer and set the bar for civilized and compassionate behavior even that much higher. And the city has rallied behind them, all races of the city, in an attempt to heal the wound the murderer opened.
But, of course, not everyone is happy about that, such as this creature:
If we really believe that black lives matter, we won’t devalue our reality and cheapen our forgiveness by giving it away so quickly and easily. Black people should learn to embrace our full range of human emotions, vocalize our rage, demand to be heard, and expect accountability. White America needs to earn our forgiveness, as we practice legitimate self-preservation.
Or, in other words … Baltimore.
Here’s a question for you, which event makes you think more about racial healing – Baltimore or Charleston?
Who has set the example for how the races should come together in the face of tragedy, even that driven by hate, and try to heal the community?
Baltimore or Charleston?
Given what Charleston has accomplished as a community, why should anyone listen to the race baiter above?
Dr. Ben Carson writes the following about the murderer of the 9 in Charleston:
Not everything is about race in this country. But when it is about race, then it just is. So when a guy who has been depicted wearing a jacket featuring an apartheid-era Rhodesian flag allegedly walks into a historic black church and guns down nine African-American worshipers at a Bible study meeting, common sense leads one to believe his motivations are based in racism. When the sole adult survivor of the ordeal reports that the killer shouted before opening fire, “You rape our women and you’re taking over our country. And you have to go” — well, that sounds to me a lot like racial hatred.
Let’s call this sickness what it is, so we can get on with the healing. If this were a medical disease, and all the doctors recognized the symptoms but refused to make the diagnosis for fear of offending the patient, we could call it madness. But there are people who are claiming that they can lead this country who dare not call this tragedy an act of racism, a hate crime, for fear of offending a particular segment of the electorate.
It is and was an act of racism. Anyone with a tepid IQ should know that and why anyone would deny it is beyond me. Racism is not dead in this country. Plenty of racists still exist. But here’s a news flash … they’re not just confined to the white race.
That said, Carson is right. Face what it is, call it what it is and then deal with the aftermath. The fact that this yahoo was a racist, however, doesn’t allow anyone the broad brush they’d like to have and we’ve seen waved about in the wake of this tragedy.
Oh, and by the way, the citizens of Charleston, much better than our leadership (political, cultural and opinion leaders included) have shown the world how a town handles such a crime. They know it was an act of racism. They also know that not everyone is racist. And they’re uniting not dividing. The families have forgiven the slug who killed their loved ones – something I’d likely have difficulty doing. But when all is said and done, the citizens of Charleston are acting like the adults in this tragedy. Too bad our president hasn’t acted that way.