Posts Tagged ‘oil dependence’

Oil, Oil Everywhere

Oil, Oil Everywhere

Courtesy of Karl Denninger at The Market Ticker 

Boat passes through heavily oiled marsh near Pass a Loutre, Louisiana

We’re now about a month into the BP Oil "blowout" incident in the Gulf.

We still don’t know exactly what caused the blowout, but that’s not the important factor from my point of view. 

We know that a gas "bolus" got into the drill pipe and expanded as it rose, and that was the proximate cause of the blast and sinking of the Deepwater Horizon.

What we don’t know is why the blowout preventer failed to close.

There have been several theories and claims, among them:

  • The Blowout Preventer’s hydraulic system has one or more leaks in it, and as such it couldn’t close.  If this is true then the question becomes who knew of the leak, if anyone, as it would have caused the preventer to fail routine tests.
     
  • There are also claims that the well failed a negative pressure test a few hours before the incident.  That would imply that there was a problem with the casing integrity (or the cement job done to lock it in place) and work continued without addressing this first.

Let me provide some context here: I live in the Florida Panhandle and in a "worst case scenario" the value of my home is likely to be destroyed.  On April 30th I wrote a piece called "Drill Baby Drill", and I stand behind it today, even with the increased knowledge we now have.

Gulf Coast Struggles With Oil Spill And Its Economic Costs

I want answers to the above two questions, and I want the firms and persons responsible for those two breaches of protocol and common sense (along with safety measures) tarred, feathered and bankrupted, in that order, with every penny they personally and corporately possess confiscated to perform whatever remediation we can.

What I do know is this: A deepwater rig like the Horizon costs about $500,000 per day to have on site and operate.  There was obviously a decision taken by someone that halting operations to pull and repair or replace the blowout preventer stack would cost millions (such an operation would result in significant downtime, of course, during which the rig would be sitting idle) and thus it was not done.

But this does not change my base view, which is that we have no valid alternative to drilling in the Gulf and elsewhere – indeed, everywhere we can find oil and gas.

What…
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Phil's Favorites

Why are white supremacists protesting the deaths of black people?

 

Why are white supremacists protesting the deaths of black people?

A member of the far-right Boogaloo Bois group walks next to protestors in Charlotte, N.C., on May 29, 2020. Logan Cyrus/AFP via Getty Images

Courtesy of Matthew Valasik, Louisiana State University and Shannon Reid, University of North Carolina – Charlotte

As protests...



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ValueWalk

IRS stimulus check status: What to do if you're still waiting

By Michelle Jones. Originally published at ValueWalk.

If you’ve been trying to find out the status of your IRS stimulus check, you’re not alone. It’s unclear how many people are still waiting for their check or prepaid debit card, but estimates suggest as many as 9 million people still haven’t received it.

Q1 2020 hedge fund letters, conferences and more

Meanwhile, debate over a second round of coronavirus stimulus checks continues on Capitol Hill.

IRS stimulus check status: 9 mill...

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Zero Hedge

Orphaned Silver Is Finding Its Parent

Courtesy of ZeroHedge View original post here.

Authored by Alasdair Macleod via GoldMoney.com,

This article examines the prospects for silver, which has been overlooked in favour of gold. Due to the economic and monetary consequences of the coronavirus lockdowns and the earlier turning of the credit cycle, there is an increasing likelihood of a severe and sustained downturn that will require far more monetary expansion to deal with, favouring the prospects of both gold and silver returning to their former monetary roles.

...

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Biotech/COVID-19

COVID-19: A Data-Driven Analysis

 

COVID-19: A Data-Driven Analysis

By John Mauldin and Mike Roizen, MD 

Should you wear a mask in public? This seemingly simple question immediately generates emotional, political, and social anxiety.

It is just one of many provocative questions COVID-19 is forcing upon us. They should be simple, data-driven policy issues but many are not.

Today’s letter is in a different format from the usual Thoughts from the Frontline. As long-time readers know, I am in frequent (and lately almost daily) contact with Dr. Mike Roizen, emeritus head of wellness at the famous Cleveland Clinic, member of the Cleveland Clinic’s leadership team, and author of many books which, thanks ...



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The Technical Traders

WOW, look at this huge setup unfolding in S&P 500. Squeeze the FOMO !!

Courtesy of Technical Traders

If you have FOMO on the stock market you better watch this video because it will make you feel better if what is unfolding is exactly what I have been talking about for the past week. The Short/FOMO Squeeze!

I offer membership services for active traders, long-term investors...



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Kimble Charting Solutions

Is the 39 Year Treasury Bond Bull Market Over?

Courtesy of Chris Kimble

10 Year US Treasury Bond Yield “inverted” Chart

This chart should look familiar, as I’ve shared and updated it a few times to alert clients and readers.

It is the 10 Year US Treasury Yield Chart… inverted.

As you know, bond yields and price move in opposite directions. So this is a way to analyze and think about bonds. And as I’ve pointed out before, inverted charts can also reduce bias.

As you can see, bond yields created the largest reversal pattern in decades. When inverted (as this chart is), yields look like bond prices. So this is action is very bearish for bond prices on a long-term historic...



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Chart School

Silver volume says something is near boiling point

Courtesy of Read the Ticker

Fundamentals are important, but they must show up in the chart. And when they do and if they may matter, it is a good sign if price and volume waves show a change of character.

The Point and Figure chart below is readtheticker.com version of PnF chart format, it is designed to highlight price and volume waves clearly (notice the Volume Hills chart).

Silver ETF volume is screaming at us! The price volatility along with volume tells us those who have not cared, are starting to, those who are wrong are adjusting, and those who are correct are loading up. Soon the kettle will blow and the price of silver will be over $20. 

Normally silver suffers in a recession, maybe this time with trillions of paper money being creat...

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Lee's Free Thinking

US Southern States COVID19 Cases - Let's Give Credit Where Due

 

US Southern States COVID19 Cases – Let’s Give Credit Where Due

Courtesy of  

The number of new COVID 19 cases has been falling in the Northeast, but the South is not having the same experience. The number of new cases per day in each Southern state has been rangebound for the past month.

And that’s assuming that the numbers haven’t been manipulated. We know that in Georgia’s case at least, they have been. And there are suspicions about Florida as well, as the State now engages in a smear campaign against the fired employee who built its much praised COVID19 database and dashboar...



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Digital Currencies

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

 

Blockchains can trace foods from farm to plate, but the industry is still behind the curve

App-etising? LDprod

Courtesy of Michael Rogerson, University of Bath and Glenn Parry, University of Surrey

Food supply chains were vulnerable long before the coronavirus pandemic. Recent scandals have ranged from modern slavery ...



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Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



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Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

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Promotions

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Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

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Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

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About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

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