Have nothing to do with the [evil] things that people do, things that belong to the darkness. Instead, bring them out to the light... [For] when all things are brought out into the light, then their true nature is clearly revealed...

-Ephesians 5:11-13

Tag Archives: North Dakota

Saudi Oil Minister “Optimistic” That OPEC Will Cut Production

This article appeared online at TheNewAmerican.com on Thursday, November 1, 2016:  

English: Flag of the Organization of Petroleum...

Flag of the Organization of Petroleum Exporting Countries

Saudi Arabia’s Energy Minister Khalid al-Falih said on television on Thursday that the crude oil market is close to becoming “balanced” between supply and demand and that the OPEC meeting happening in less than two weeks will likely generate an enforceable limit on the cartel’s production:

Reaching (a decision) to activate that ceiling of 32.5 million barrels per day will speed up the (market) recovery and will benefit producers and consumers….

 

I’m still optimistic that the consensus reached [last month] for capping production will translate … into caps on [each cartel member’s] levels.

He also added that he “hoped” an agreement the cartel might reach would be honored by non-OPEC member Russia.

Hope is not a strategy. Neither is optimism based upon it,

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Oil and Gas Prices Dropping in Anticipation of Trump Presidency

This article appeared online at TheNewAmerican.com on Monday, November 14, 2016:  

Even as prices for crude oil and natural gas were already declining thanks to continued overproduction by the OPEC cartel, the commitment of millions of dollars in new capital expenditures by major oil companies next year, and the stirring of recovery in the oil patch, last Tuesday’s election added additional impetus to the decline. The price for crude oil for December delivery has dropped more than $2 a barrel since the election, and Evan Kelly, writing at OilPrice.com, thinks it’s going to drop further, perhaps much further.

Reasons abound, mostly around Donald Trump’s promise to breathe new life into an industry hampered by overregulation driven by questionable concerns over global warming.  As Kelly wrote:

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The Four “Wild Cards” in Trump’s Handful of Advisors

This article was published by The McAlvany Intelligence Advisor on Friday, November 11, 2016:  

English: Logo of The Goldman Sachs Group, Inc....

Nervous conservatives are looking for signs that the “establishment” – i.e., Goldman Sachs, big banks, the Council on Foreign Relations, George Soros, etc. – having been unable to derail Donald Trump’s march to the presidency, is going instead to infiltrate and insinuate its operatives into the new Trump administration. Many of them remember the successful infiltration and subsequent manipulation of the Reagan administration with the naming of establishment insider James Baker as Reagan’s chief of staff.

At the moment there appear to be four “wild cards” out of the dozens Trump has already invited into his inner circle: Steven Mnuchin, Peter Navarro, John Paulson, and Carter Page.

The first and most obvious one is Steven Mnuchin, the head of Dune Capital Management and former director at Goldman Sachs, where he amassed a personal fortune estimated at more than $40 million as head of the firm’s trading desk. A graduate of Yale,

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Saudi Energy Minister: Crude Oil at $60 Not “Unthinkable”

This article appeared online at TheNewAmerican.com on Tuesday, October 11, 2016: 

Saudi Arabia’s energy minister, Khalid al-Falih, asserted at the World Petroleum Congress in Istanbul on Monday that he is optimistic that members of the OPEC cartel will agree on production cuts at its meeting in late November, and that it isn’t “unthinkable” that, as a result, crude oil prices could hit $60 a barrel by the end of the year.

Following late September’s informal meeting when the cartel agreed to appoint a committee to come up with options in time for the Istanbul meeting, energy traders drove the price of crude above $50 a barrel. On Monday it nearly touched its highest level for the year, reacting to Russian President Vladimir Putin’s support for OPEC’s possible cut in crude oil production to “stabilize” the market.

Such a production cut, if it takes place (OPEC members are notoriously fickle about keeping solemnly-pledged agreements), would be designed to push crude oil prices higher, but still low enough to keep “rivals from raising their output,” according to OPEC’s secretary-general following the September meeting in Algeria.

That’s going to be a trick,

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Comeuppance in the Oil Patch

This article was published by The McAlvany Intelligence Advisor on Wednesday, August 3, 2016:  

Looking down from Heaven, George Mitchell must be pleased with what’s going on below: oil inventories are growing to the point where offshore tankers and railroad tank cars are having to be used for storage, oil and gas prices are dropping along with the costs of all the other 6,000 consumer products made from petroleum, rig counts are increasing, production costs are dropping, and, best of all, OPEC’s influence is waning daily.

The Economist called Mitchell the father of fracking in its eulogy following his death in July, 2013. They referred to him as

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U.S. Oil Shale Producers Putting OPEC Into Financial Bind

This article appeared online at TheNewAmerican.com on Tuesday, August 2, 2016:  

This wasn’t supposed to happen. When OPEC decided in November 2014 to keep producing crude oil at or near maximum rates, it was following an unspoken strategy to force the U.S. oil shale industry to back off. That would allow prices to rise back to levels needed to fund the cartel’s military adventures and their welfare states.

Marginal producers in the United States did declare bankruptcy, while other producers stacked most of their oil rigs, cutting daily production in the country from 9.7 million barrels per day (mpd) to 8.5 mpd. This caused crude oil prices to rise from the low 30s to the mid 50s.

But then oil prices levelled off and began to decline,

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Federal Judge: BLM Tries to Pull an “End Run” Around Congressional Limitations

This article was published by The McAlvany Intelligence Advisor on Monday, June 27, 2016:

English: Oil well An oil rig used for training.

Scott W. Skavdahl was nominated as judge of the United States District Court for the District of Wyoming by President Obama in February, 2011. The Senate voted 96-0 to confirm him in November. If Obama thought he had a friend he could rely on he was sadly mistaken. On Tuesday, June 21, Skavdahl came down hard on the BLM, accusing it of deliberately and intentionally ignoring Congressional intent when it prohibited the EPA from regulating fracking back in 2005:

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$60 Oil “Very Possible” Says Saudi Arabia’s New Oil Minister

This article was published by TheNewAmerican.com on Friday, June 3, 2016:  

On November 17, gas prices had dropped to $1.9...

On November 17, gas prices had dropped to $1.99 in Bakersfield, California, due to falling Oil prices

Following the OPEC meeting on Thursday, Saudi Arabia’s new oil minister, Khalid Al Falin, told CNN that $60 a barrel oil is “very possible” by the end of the year, with even higher prices expected next year. He said that supply and demand in the oil market have “converged” without the OPEC cartel needing to curtail supply. In short, OPEC is celebrating its strategy of letting the lowest oil prices seen in years weed out the weak and marginal players in the United States, resulting in cuts in production. As Qatar’s oil minister exulted at a press conference in Vienna following the meeting, “The worst is over for oil.”

Translation:

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Evidence Mounts for U.S. Recession in 2016

This article appeared online at TheNewAmerican.com on Monday, March 14, 2016:  

Nearly everyone with an opinion is warning about the increasing probability of the United States entering a recession — two quarters of negative growth — before the end of the year.

Cabinet - Class Photo, 1984: Front row: David ...

President Ronald Reagan’s former budget director David Stockman (middle, left) has been negative on the economy for months, noting in early February that

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The Best Evidence Yet of a US Recession This Year

This article was published by The McAlvany Intelligence Advisor on Monday, March 14, 2016:  

The best evidence comes from the US Treasury with its daily report of tax receipts from wages and salaries. It’s pure, it’s timely, and it’s free of massaging and/or manipulation. And it’s ugly.

John Williams, the skilled and capable economic statistician whom the establishment economists love to hate, author of ShadowStats.com, has built a graph (see source below) showing

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Fastest-growing High-school Sport? Trap Shooting

This article appeared online at TheNewAmerican.com on Monday, July 13, 2015:

Sitting in church one Sunday morning in 2001, Jim Sable, at age 62 one of the youngest members of his Twin Cities gun club, saw an announcement in the church bulletin: “Mentor needed as a trap shooting tutor.” He jumped at the chance to help reverse the aging trend among his peers. Calling it “divine providence,” Sable started tutoring a 14-year-old girl from the church in the fine art of winging clay pigeons with a 12-guage shotgun. She became the first member of the Orono High School trapshooting team.

By 2010, there were 340 students from around the state of Minnesota taking part in the sport. In 2012, there were 1,500. In 2014, there were 6,100.

So far this year

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Oil Production Still Increasing — Confounding Experts

This article first appeared online at TheNewAmerican.com on Monday, March 16, 2015: 

Logo of International Energy Agency

A month ago the International Energy Agency (IEA) began hedging its bet that declining oil prices would cut production: “U.S. supply [of crude oil] so far shows precious little sign of slowing down. Quite to the contrary, it continues to defy expectations.” 

This is how economists say “Oops!” 

On Friday the IEA was still astonished at the resilience of the oil industry as it continued to produce at record levels, despite predictions that declining rig counts would force production cuts. Instead, total U.S. crude oil production hit a high of 9.4 million barrels a day during the week ending March 6. 

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US Crude Production Sets Record in March, Surprises the IEA

This article first appeared at The McAlvany Intelligence Advisor on Monday, March 15, 2015: 

Just a quick look at the history of the International Energy Agency should convince anyone of its inefficacy: founded in 1974 at the suggestion of Henry Kissinger, its focus is on management of other peoples’ resources. Its mandate: the “3Es”: energy security, economic development, and environmental protection. The fact that it lacks any understanding of how the free market automatically addresses these issues showed up a month ago when its prediction of lower oil production in the US fell flat: “The U.S. supply [of crude oil] so far shows precious little sign of slowing down. Quite to the contrary, it continues to defy expectations.”

On Friday it confirmed its ignorance of how the free market works when it announced – surprise of surprises – that

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Obama Goes on Offense, Wants to Spend Even More

This first appeared at The McAlvany Intelligence Advisor on Monday, February 2, 2015:

English: Obama speaks at American University.

Taking a page not only out of the Super Bowl on Sunday, but also out of the statistical study proving that offense is more effective in winning than defense, Obama is offering a grievously offensive and logically indefensible budget for 2016 today (Monday, 2/2/15). His proposal is morally offensive in that he proposes to take money earned by some and give it to others. It is logically flawed in that it will increase deficits each year for the next ten years, adding yet another $6 trillion to the $18 trillion already extant (up from the $10 trillion when he took office in 2008). It will limit job growth, stifle innovation, keep tax lawyers and accountants busy into eternity, and do nothing for his favorite target: the beleaguered middle class.

None of that matters. It’s all for show and to keep the Republicans on the defensive by couching his proposal in terms that only progressives could love:

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Oil Price Decline Hurting Alaska the Most

This article first appeared online at TheNewAmerican.com on Monday, January 26, 2015:

State Seal of Alaska.

Although oil-producing states such as North Dakota and Texas are expected to suffer declines in revenues if oil prices continue to drop, other states such as Wyoming, Louisiana, and especially Alaska will feel much more than just a temporary pinch. According to the Standard & Poor’s (S&P) Ratings Service,

If lower prices persist through 2015, the economies and finances of the energy producing states — Louisiana, Alaska, Wyoming, New Mexico, Oklahoma and North Dakota — will be put to the test.

Oil and mineral revenues account for a third of Wyoming’s budget, one-sixth of New Mexico’s, and one-eighth of Louisiana’s, while Texas — the state that, standing alone, would be the eighth-largest oil-producing country in the world — counts on less than

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Impacts of Lower Crude Oil Prices Continue to Spread

This article first appeared online at TheNewAmerican.com on Tuesday, January 13, 2015:

 

After oil forecaster Jeremy Warner got lucky last year when he accurately called the top in oil prices, with a fall to at least $80 a barrel, he doubled down by predicting “that the oil price will remain low for a long time, sinking to perhaps as little as $20 a barrel over the coming year before recovering a little.”

Warner got lucky once again when Goldman Sachs confirmed his prognosis, setting off an eye-popping five percent decline in oil to $45 a barrel which continued into Tuesday. Tuesday’s low was $44.20. As Goldman Sachs noted,

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Collapse in Oil and Natural Gas Prices Hitting OPEC the Hardest

This article first appeared online at TheNewAmerican.com on Monday, December 29, 2014: 

On November 17, gas prices had dropped to $1.9...

As prices for crude oil and natural gas continued their precipitous fall over the last five weeks, most commentators have been focusing on the impact — real or predicted — on the oil and gas industry in the United States. Little noticed, however, was the report from the U.S. Energy Information Administration (EIA) about how those declines are likely to affect OPEC.

OPEC’s total revenues, which hit an all-time high of $900 billion in 2012, are expected to decline by half next year, to just $446 billion. And that projection is based on the assumption that oil prices will average

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Gas Prices: How Much Lower and Longer?

This article first appeared online at TheNewAmerican.com on Friday, December 5, 2014: 

On November 17, gas prices had dropped to $1.9...

It made headline news when a OnCue Express station in Oklahoma City dropped its price for regular unleaded gasoline to $1.99 gallon on Wednesday. What didn’t make the headlines is what happened next: Drivers seeking to save a few pennies created long lines at OnCue, and so another station down the street, responding to the competition, cut its price to $1.98 a gallon. By the end of the day, another station located in nearby Moore, Oklahoma, cut its price to $1.95 a gallon. 

Gas wars are back, helping consumers and providing living, breathing proof that, despite everything, the free market still works. 

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Crude Oil Price Declines Reveal Who’s Swimming Naked

This article first appeared at The McAlvany Intelligence Advisor on Wednesday, December 3, 2014: 

Ali Al Naimi

Ali Al Naimi

One of the most famous homespun quotes Warren Buffett ever uttered is this: “Only when the tide goes out do you discover who’s been swimming naked.” With the decline in crude oil prices of nearly 50 percent since June, more and more people are finding themselves swimming naked, or they’re about to.

Consider the formerly invincible oil cartel, OPEC, which seems to be suffering from delusions of its former glory by taking on oil producers in America. Instead of cutting production in order to “stabilize” oil prices, the cartel, led by the aging big kahuna, Saudi Arabia, has decided to

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Lower Crude Oil Prices Already Pinching Producers

This article first appeared online at TheNewAmerican.com on Tuesday, December 2, 2014:

Coat of Arms of Saudi Arabia

Coat of Arms of Saudi Arabia

As crude oil prices continued their breathtaking drop, the CEO of Canadian Natural Resources, Canada’s largest oil company, Murray Edwards (the 14th wealthiest Canadian) was asked on Friday just how much further crude oil prices could decline. His response:

On a given day you can have market fluctuations where prices fluctuate far more than the underlying economic value of the unit. Prices could spike down to $30, $40. It got down to $35 in 2008, for a very short period of time.

On Monday crude oil prices briefly stabilized and then dropped further on Tuesday, hitting new four-year lows.

This pronouncement is at odds with an oil production estimate by the seemingly eternal oil optimist and economist Mark Perry, who rejoiced on Monday that

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Many of the articles on Light from the Right first appeared on either The New American or the McAlvany Intelligence Advisor.