Comments not directly related to oil or natural gas should be posted in this thread. Thanks.
THE BLOOD BATH CONTINUES IN THE U.S. MAJOR OIL INDUSTRY
Guest Post by SRSrocco
This post does not necessarily reflect the views of Dennis Coyne or Ron Patterson.
The carnage continues in the U.S. major oil industry as they sink further and further in the RED. The top three U.S. oil companies, whose profits were once the envy of the energy sector, are now forced to borrow money to pay dividends or capital expenditures. The financial situation at ExxonMobil, Chevron and ConocoPhillips has become so dreadful, their total long-term debt surged 25% in just the past year.
Unfortunately, the majority of financial analysts at CNBC, Bloomberg or Fox Business have no clue just how bad the situation will become for the United States as its energy sector continues to disintegrate. While the Federal Government could step in and bail out BIG OIL with printed money, they cannot print barrels of oil.
Watch closely as the Thermodynamic Oil Collapse will start to pick up speed over the next five years.
According to the most recently released financial reports, the top three U.S. oil companies combined net income was the worst ever. The results can be seen in the chart below:
Open Thread-Non-Petroleum, Feb 9, 2017
Comments not directly related to oil or natural gas should be posted in this thread. Thanks.
Open Thread Petroleum-Feb 5, 2017
Comments for oil and natural gas should be posted here.
Peak Oil and Plug-in Vehicles
Oil output (crude plus condensate or C+C) is likely to peak by 2020 (or may have peaked already in 2015 or 2016). Electric Vehicles (EVs) and Plugin hybrid electric vehicles (PHEVs) may allow about 40% of current oil consumption to be substituted with electricity, under the simplifying assumption that the use of oil based fuels in PHEVs is minimal due to high oil prices. It is assumed here that high oil prices are the likely result of the decline in oil output. I have modified my medium oil scenario with slightly higher extraction rates, shown in the chart below.
