The year is 2017 and the price of oil is to low it was simply left in the ground and production dropped off rapidly. This led to a whole series of secondary effects. Debt defaults, deflation, job loss, collapse of our exports, and bank failures led to a declining economy in many US states such as Texas, North Dakota, Montana, Alaska, Oklahoma, New Mexico, Colorado, and California.
Only 50% off oil is extracted, the amount of oil we can extract will gradually decline as a result of oil prices, decline on reserves today may be left in the ground.
Offshore drilling is also being hit hard. The owners of the biggest fleet of deepwater drilling rigs, recently took billions of dollars charge, I’m on a drilling rig glut. New oil and gas well permits today tumbled by 40%.
With such low oil prices, it became much more different for shale drillers to pay back the loans Cash flow is extremely low, interest rates on new loans are much higher. Shale drillers loans became a high risk and energy debt accounts for 16% of the US junk bond market, so the amount at risk is substantially high. This situation led to the collapse of oil exporters, and less of all the oil they export.
Crude and liquid natural gas just disappeared, and Asia stopped buying US crude oil due to such an oversupply and discounted prices in the Middle East.
The idea of renewable can eventually take over the role of fossil oil, halted the expansion of new business depending on oil.
One main reason for oil pricing dropping is credit related. Quantitative easing implemented by the US in 2008 is a monetary plan in which a central bank creates new electronic money in order to buy government bonds or after financial assets to stimulate the economy.
QE was halted in October of 2014 after accumulating trillions in asset. This is why InterBank & UsaBanks Group created their lending policy and called default loans notes driving oil exporters and drillers out of business.
The $96 million Watson mansion on 5th Ave., New York defied a mid-December cheesy color by the brightly illuminated landscape and the well-lit changing colors structure walls.
Adam the Butler stood facing the two-sided redwood door of Oliver Watson private study. Adam a gay valet Butler seemed like a man who never ages. He wore a dark navy suit and a white shirt with a stiffy starched red collar. He’s had pulled back in a ponytail was all gray. His large blue eyes were set apart sheltering under very thin arched gray and white eyebrows. His pointed chin under sick clips gave him an aristocratic look. Adam did not even knock and pushed the door within his left foot, with one hand carrying a tray, the other held a fine bottle of Remy Martin XO excellence Cognac Jetro Boam.