U.S. SHALE OIL INDUSTRY: Catastrophic Failure Ahead

While the U.S. Shale Industry produces a record amount of oil, it continues to be plagued by massive oil decline rates and debt.  Moreover, even as the companies brag about lowering the break-even cost to produce shale oil, the industry still spends more than it makes.  When we add up all the negative factors weighing down the shale oil industry, it should be no surprise that a catastrophic failure lies dead ahead.

Of course, most Americans have no idea that the U.S. Shale Oil Industry is nothing more than a Ponzi Scheme because of the mainstream media’s inability to report FACT from FICTION.  However, they don’t deserve all of the blame as the shale energy industry has done an excellent job hiding the financial distress from the public and investors by the use of highly technical jargon and BS.

For example, Pioneer published this in the recent Q2 2018 Press Release:

Pioneer placed 38 Version 3.0 wells on production during the second quarter of 2018. The Company also placed 29 wells on production during the second quarter of 2018 that utilized higher intensity completions compared to Version 3.0 wells. These are referred to as Version 3.0+ completions. Results from the 65 Version 3.0+ wells completed in 2017 and the first half of 2018 are outperforming production from nearby offset wells with less intense completions. Based on the success of the higher intensity completions to date, the Company is adding approximately 60 Version 3.0+ completions in the second half of 2018.

Now, the information Pioneer published above wasn’t all that technical, but it was full of BS.  Anytime the industry uses terms like “Version 3.0+ completions” to describe shale wells, this normally means the use of  “more technology” equals “more money.”  As the shale industry goes from 30 to 60 to 70 stage frack wells, this takes one hell of a lot more pipe, water, sand, fracking chemicals and of course, money.

However, the majority of investors and the public are clueless in regards to the staggering costs it takes to produce shale oil because they are enamored by the “wonders of technology.”  For some odd reason, they tend to overlook the simple premise that…


Of course, the shale industry doesn’t mind using MORE MONEY, especially if some other poor slob pays the bill.

Shale Oil Industry: Deep The Denial

According to a recently released article by 40-year oil industry veteran, Mike Shellman,  “Deep The Denial,” he provided some sobering statistics on the shale industry:

I recently put somebody very smart on the necessary research (SEC K’s, press releases regarding private equity to private producers, etc.) to determine what total upstream shale oil debt actually is. We found it to be between $285-$300B (billion), both public and private. Kallanish Energy Consultants recently wrote that there is $240B of long term E&P debt in the US maturing by 2023 and I think we should assume that at least 90 plus percent of that is associated with shale oil. That is maturing debt, not total debt.

… By year end 2019 I firmly believe the US LTO industry will then be paying over $20B annually in interest on long term debt.

Using its own self-touted “breakeven” oil price, the shale oil industry must then produce over 1.5 Million BOPD just to pay interest on that debt each year. Those are barrels of oil that cannot be used to deleverage debt, grow reserves, not even replace reserves that are declining at rates of 28% to 15% per year… that is just what it will take to service debt.

Using its own “breakeven” prices the US shale oil industry will ultimately have to produce 9G BO of oil, as much as it has already produced in 10 years…just to pay its total long term debt back.

Using Mike’s figures, I made the following chart below:

For the U.S. Shale Oil Industry just to pay back its debt, it must produce 9 billion barrels of oil.  That is one heck of a lot of oil as the industry has produced about 10 billion barrels to date.  Again, as Mike states, it would take 9 billion barrels of shale oil to pay back its $285-300 billion of debt (based on the shale industry’s very own breakeven prices).

Furthermore, the shale industry may have to sell a quarter of its oil production (1.5 million barrels per day) just to service its debt by the end of 2019.  According to the EIA, the U.S. Energy Information Agency, total shale oil (tight oil) production is now 6.2 million barrels per day (mbd):

The majority of shale oil production comes from three fields and regions, the Eagle Ford (Blue), the Bakken (Yellow) and the Permian (light, medium & dark brown).  These three fields and regions produce 5.2 mbd of the total 6.2 mbd of shale production.

Unfortunately, the shale industry continues to struggle with mounting debt and negative free cash flow.  The EIA recently published this chart showing the cash from operations versus capital expenditures for 48 public domestic oil producers:

You will notice that capital expenditures (brown line) are still higher than cash from operations (blue line).  So, it doesn’t seem to matter if the oil price is over $100 (2013-2014) or less than $70 (2017-2018), the shale oil industry continues to spend more money than it’s making.  The shale energy companies have resorted to selling assets, issuing stock and increasing debt to supplement their inadequate cash flow to fund operations.

A perfect example of this in practice is Pioneer Resources… the number one shale oil producer in the mighty Permian.  While most companies increased their debt to fund operations, Pioneer decided to take advantage of its high stock price by raising money via share dilution.  Pioneer’s outstanding shares ballooned from 115 million shares in 2010 to 170 million by 2017.  From 2011 to 2016, Pioneer issued a staggering $5.4 billion in new stock:

So, as Pioneer issued over $5 billion in stock to produce unprofitable shale oil and gas, Continental Resources racked up more than $5 billion in debt during the same period.  These are both examples of “Ponzi Finance.”  Thus, the shale energy industry has been quite creative in hoodwinking both the shareholder and capital investor.

Now, there is no coincidence that I have focused my research on Pioneer and Continental Resources.  While Continental is the poster child of what’s horribly wrong with the shale oil industry in the Bakken, Pioneer is a role model for the same sort of insanity and delusional thinking taking place in the Permian.

Pioneer Spends A Lot More Money With Unsatisfactory Production Results

To be able to understand what is going on in the U.S. shale industry, you have to be clever enough to ignore the “Techno-jargon” in the press releases and read between the lines.  As mentioned above, Pioneer stated that it was going to add a lot more of its “high-tech” Version 3.0+ completion wells in the second half of 2018 because they were outperforming the older versions.

Well, I hope this is true because Pioneer’s first half 2018 production results in the Permian were quite disappointing compared to the previous period.  If we compare the increase of Pioneer’s shale oil production in the Permian versus its capital expenditures, something must be seriously wrong.

First, let’s look at a breakdown of Pioneer’s Permian energy production from their September 2018 Investor Presentation:

Pioneer’s Permian oil and gas production is broken down between its horizontal shale and vertical convention production.  I will only focus on its horizontal shale production as this is where the majority of their capital expenditures are taking place.  The highlighted yellow line shows Pioneer’s horizontal shale oil production in the Permian Basin.

You will notice that Pioneer’s shale oil production increased significantly in Q3 & Q4 2017 versus Q1 & Q2 2018.  Furthermore, Pioneer’s shale gas production surged in Q2 2018 by nearly 50% (highlighted with a red box) compared to oil production only increasing 5%.  That is a serious RED FLAG for natural gas production to jump that much in one quarter.

Secondly, by comparing the increase of Pioneer’s quarterly shale oil production in the Permian with its capital expenditures, the results are less than satisfactory:

The RED LINE shows the amount of capital expenditures spent each quarter while the OLIVE colored BARS represent the increase in Permian shale oil production.  To simplify the figures in this chart, I made the following graphic below:

Pioneer spent $1.36 billion in the second half of 2017 to increase its Permian shale oil production by 30,232 barrels per day (bopd) compared to $1.7 billion in the first half of 2018 which only resulted in an additional 10,832 bopd.  Folks, it seems as if something seriously went wrong for Pioneer in the Permian as the expenditure of $340 million more CAPEX resulted in two-thirds less the production growth versus the previous period.

Third, while Pioneer  (stock ticker PXD) proudly lists that they are one of the lowest cost shale producers in the industry, they still suffer from negative free cash flow:

As we can see, Pioneer lists their breakeven oil price at approximately $22, which is downright hilarious when they spent $132 million more on capital expenditures than the made in cash from operations:

The public and investors need to understand that “oil breakeven costs” do not include capital expenditures.   And according to Pioneer’s Q2 2018 Press Release, the company plans on spending $3.4 billion on capital expenditures in 2018.  The majority of the capital expenditures are spent on drilling and completing horizontal shale wells.

For example, Pioneer brought on 130 new wells in the first half of 2018 and spent $1.7 billion on CAPEX (capital expenditures) versus 125 wells and $1.36 billion in 2H 2017.  I have seen estimates that it cost approximately $9 million for Pioneer to drill a horizontal shale well in the Permian.  Thus, the 130 wells cost nearly $1.2 billion.

However, the interesting thing to take note is that Pioneer brought on 125 wells in 2H 2017 to add 30,000+ barrels of new oil production compared to 130 wells in 1H 2018 that only added 10,000+ barrels.  So, how can Pioneer add five more wells (130 vs. 125) in 1H 2018 to see its oil production increase a third of what it was in the previous period?  

Regardless, the U.S. shale oil industry continues to spend more money than they make from operations.  While energy companies may have enjoyed lower costs when the industry was gutted by super-low oil prices in 2015 and 2016, it seems as if inflation has made its way back into the shale patch.  Rising energy prices translate to higher costs for the shale energy industry.  Rinse and repeat.

Unfortunately, when the stock markets finally crack, so will energy and commodity prices.  Falling oil prices will cause severe damage to the Shale Industry as it struggles to stay afloat by selling assets, issuing stock and increasing debt to continue producing unprofitable oil.

I believe the U.S. Shale Oil Industry will suffer catastrophic failure from the impact of deflationary oil prices along with peaking production.  While U.S. Shale Oil production has increased exponentially over the past decade, it will likely come down even faster.

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56 Comments on "U.S. SHALE OIL INDUSTRY: Catastrophic Failure Ahead"

  1. Michael Kohlhaas | October 23, 2018 at 6:42 am |

    Can’t wait to see that shit going down! And screw political correctness!

  2. A prime example of the insanity that has become endemic in the investment world. A similar analysis of a whole host of other businesses would demonstrate similar results. Netflix and Tesla being two shining examples.

    Got gold and silver? They are still on sale but won’t be for long.

  3. Great Article Steve!
    Keep stacking! I hope I live long enough to see it skyrocket. Looks like it might really happen.
    10 years is a long time to wait.

  4. Earlier, Steve mentioned that he thought that this next market crash wouldn’t cause a similar crash in precious metals. That seems to be the case! The past few weeks, each time the market takes a hit, precious metals and miners catch a bid. I like what I’m seeing, and I’m putting my money where my mouth is. This is spectacular

  5. I think there would be a mini crash in PMs with a real market collapse. I would say if the market collapses 50% PMs will crash just 10% (30% for miners). But the PMs collapse will be very short, maybe just a few weeks.

  6. Shale Oil would not be possible without shit loads of zero interest loans.

  7. OutLookingIn | October 23, 2018 at 1:37 pm |

    “10 years is a long time to wait”.

    Try waiting 38 years! As a much younger and naive person during the big gold run up of 1980, I bought when it was high at just over $600 and of course held on for too long. I swore I would learn everything I could about the gold market. Now 38 years later, I agree with the generally accepted premise that the “Big Reset” draws very near.
    I have been fortunate in that I did not have to liquidate after 1980. Now maybe in the very near future I will have the opportunity to sell at a modest profit.

  8. They will keep drilling it like “swiss cheese” so as long as they can sustain the AMERICAN DREAM – DEBT doesn’t matter! . . . until it’s you who doesn’t get the money.
    As always good work Steve . . .

  9. Buy gold now, keep an eye on the collapse and sell the gold on the way down. By “way down” I don’t mean a particular market (gold or otherwise) I refer to societal collapse. The “way down” of our economic/industrial ecosystem. Gold will hold or increase in value as other markets tank. Sell gold for dollars. Buy well-watered fertile land in a temperate regions, remote from cites. Preverably near mega-agriculture lands with rail/barge access (for delivery to wealthy cities). Use the rest of the money for a doomstead

  10. Excellent analysis, thanks a lot.

    By the way, I’d very much like to see an EROI analysis by Steve on silver production.

    A similar disaster might be in the works.

  11. And now we know why America supports Saudi Arabia in the war on Yemen. America needs Yemen’s oil because the Saudi wells are near depletion and the frack wells have little life left. They’re starving the Yemeni people – now called the worst case of mass starvation in the last 100 years. That alone tells us that Steve’s analysis is correct.

  12. Best part of the week is a Steve article…

  13. This pathetic situation in US oil also explains why the US war machine is (or was) so intent on taking over Syria and parking all the military bases right next to the fake ISIS terrorist’s bases which happen to be right on top of the oil fields in Syria. That unsuccessful outcome also explains why they have ramped up rhetoric against Iran because as per the Brookings Institute papers from the 1990s it has always been a prime takeover target for its oil. Oh and that also explains why Venezuela is so “bad and undemocratic” (oil), why Russia is so bad (oil and gas), and why the head chopping Saudi Arabians were so nice (oil under control and priced in USD). Oh, and Iraq’s WMD lies (oil), etc etc etc.

    Are there still people out there who cannot see this picture? The USA is screwed wrt oil and will throw their weight around in a tantrum until they cause some serious trouble somewhere. While I eagerly await the thermodynamic collapse in the price of oil, I fear we may face a sky high price for oil before then.

  14. Anybody know how to short shale? Can’t find an inverse ETF or anything that specific. I try to stay away from puts given they expire. Thx.

  15. Oil should be much more of a concern than a lot of people realize. Being prepared for what could occur in the future is key. I get ready by making sure to buy bullion! https://bullionexchanges.com/ or your local dealer can help you stock up on assets that are easy to liquidate when the oil crash happens. Just my opinion!

  16. Meanwhile the US is not making any friends around the world. More people than not would love to see the dollar, along with oil and gold pricing dominance end. China, Russia along with so many, will be merciless if the opportunity rises.

  17. So we the oil pit needs 400$ oil NOT to go bust, but the world will be bust, or 40$ oil where the oil pit is surely bust and the WAWKI is bust because there won’t be any oil available? Seems like a case of pick your poison… The bad ending to this all is unfortunately already backed into the cake.

  18. This whole article is garbage. Why dont you just advertise that you hold a short position and ask other libtards to go along with you. Does it really make any sense that a company would employ tens of thousands of people for decades and operate at a loss year over year? HAHAHAHAHAHAHA

  19. DisappearingCulture | October 24, 2018 at 11:33 am |

    This is the depth of your analysis/understanding of these issues?

  20. USA doesn’t need oil imports from SA (nor from Yemen for that matter).

    Could be, your MIC wants to continue its arms sales, maybe the MBS regime is central for the survival of the petrodollar, don’t know.

    Steve, you may be right re ‘impending failure of the shale oil industry”.
    So far, though, this industry delivers 6 bn barrels per day.

  21. DisappearingCulture | October 24, 2018 at 2:04 pm |

    “So far, though, this industry delivers 6 mn barrels per day.”

    Yes, enabled by massive low interest debt. Why is that so difficult for some to understand? Part of the reason is not reading the article or studying the facts & issues

  22. Great job Steve.

    You nailed it on the last shale post as well. The rate of depletion is out stripping the ability of the industry to replace it. We’re seeing rigs being added but at half the rate needed. Mean time we’re building a glut of gasoline that is starting to depress prices. Let’s face it not only is shale a Ponzi it is also poo. It doesn’t have the heavies needed to balance refiner uptake. No body wants the garbage.

  23. DC,

    “Yes, enabled by massive low interest debt.”

    I’m afraid, that’s how this system is supposed to work (but WILL probably NOT very much longer).

  24. S and P just broke major resistance to the downside. Fresh air below. Gold and silver still maintaining uptrend.
    It seems now that we are in a situation where when equities go down gold goes up.

  25. Maurice Miner | October 25, 2018 at 1:32 am |

    Interesting, as usual. Have you considered the Canadian oil production numbers, which currently seem to indicate sales at USD $20 per barrel for their crude? I might even turn towards your thoughts of mammoth deflation in the price of oil. The Canadian situation is strange, to say the least.

  26. Spanky Bernanke | October 25, 2018 at 5:45 am |

    Yes, but their stock valuation fell 5% yesterday. It’s hard to believe anybody would pay $150 for Pioneer stock? It won’t last—never does. The Fed can’t rig everything….right???

  27. Because of the proof, by this website and Steve St.Angelo; that fracking and shale oil is a negative EROI,
    all other nations have “Cease and Desisted” shale oil production!
    Bravo !

  28. The only thinh which is really going dow is precious metals stocks : goldcorp destroyed by nearly 20% today with new low for a 15/20 years time frame.

  29. WAIT
    As the last drop of oil is being used up shouldn’t we be in a World ___?
    Did we already have a World ___?
    Are we in a World ___?
    Are we about to be in a World____ ?


    Mean while Masai Warriors of Africa and common people in small villages all over the world are learning to read and write and even invest in stocks, bonds and commodities.
    Even to invest in cotton, sugar, Gold, Silver and Bitcoin.
    Each tiny jump is 100X 1000X what they invested
    which they sell to better their lives!

    Quantum computing is truly amazing!
    “ipsa scientia potestas est”

    “Ladies and gentlemen, we have just been cleared to land.
    Please make sure one last time your seat belt is securely fastened.”

  30. If you would believe it, gold is now flat for close to 8 and 1/2 years ($1234 in June 2010), and silver is flat for 11 years! ($14 in Oct. 2007), look it up.

    Silver has erased all if its gains since the financial crisis.

    Inflation hedge indeed.

    • dolph,

      I don’t know if you are NAIVE or IGNORANT, but there are several types of inflation. While CONSUMER PRICE INFLATION has been kept at bay since 2012, ASSET PRICE INFLATION has gone bananas. Because you can’t spot the ASSET INFLATON in STOCKS, BONDS, & REAL ESTATE, you will also not understand when investors rotate out of those assets and into GOLD & SILVER to protect wealth.

      But, of course… you are free to remain NAIVE or IGNORANT.

      It’s a free world.


  31. . <= That tiny dot was the only thing worth saying to you dolph.

  32. Why would they rotate out of assets that are doing well and providing them with both capital gains and income, and into precious metals, collectors items which are doing nothing?

    Once again you guys prove that you are nowhere near real wealth, nor a part of their decision making process. You guys are collectors, fetishists who imagine you are part of the club.

    But this sort of thing has to happen now and then. I’m not insulting you guys, just observing. Of course do what you want, stack as many gold and silver coins and bars that you can, see where it gets you. At the very most, you won’t go broke. The ultimate “don’t lose” strategy.

  33. I am a futures trader and never think of gold and silver. I am here because I like Steve’s energy info. But that does not stop me from having at least 10 percent of my wealth in the useless stuff. Just in case Zimbabwe or Venezuela are around the corner. It’s called insurance.

  34. Paul D Anders | October 28, 2018 at 4:38 am |

    In other words, your just gonna have to wait a little bit longer dolph…
    A;; joking aside, as long as they can deliver AND naked short, metals will remain where they are.

  35. “This whole article is garbage. Why dont you just advertise that you hold a short position and ask other libtards to go along with you. Does it really make any sense that a company would employ tens of thousands of people for decades and operate at a loss year over year?”

    look ^, someone who still thinks the “limits to growth” is a political situation. LOL!

  36. Yannick Turgeon | October 29, 2018 at 7:58 am |

    Did you realize Steve that this 1.7B$ for 10k bpd increase puts it at 150k$/bpd? 150 000$! At 50$/barrel of “profit” (over their 20$ production cost), it would takes 8 years of production for this barrel to repay its capex and get ready to bring home real money. Me think it’s a bit long in the shale world.

  37. Silver is back to lower leg of it’s uptrend. It better go up today. It has formed a bearish flag.

  38. I just updated some charts here http://learnpowertrader.weebly.com/
    Silver is in a bearish flag and looks vulnerable but sill in uptrend
    Gold is still in uptrend but has no strength
    Bitcoin is still in bearish triangle
    S and P is clinging to the underside of resistance and a channel and looks vulnerable.
    In other words everything looks weak.

  39. Whatever risky stuff a person is speculating in, Gold/Silver/Cash position of 10%-30% will reduce beta of the portfolio and give you options when you HAVE TO sell something. Look back to the “fully-invested” diversified portfolio of Summer 1929 and add some margin/leverage to imagine some pain until the 1950’s. It won’t take 3 years to bottom this time (when a “bottom” is 95% off highs)due to rapid global comms and nowhere to run.
    Got storage food?

  40. Silver is gone. Broken bearish triangle. If this is a 1,2,3 silver will go to $11.00. I went short silver again at $14.48.
    Gold is Still hanging in. Gold silver ratio could head towards a 100 to 1.
    See charts here http://learnpowertrader.weebly.com/

  41. How could all of us be right and still be wrong?
    How could all of us have a pieces of HISTORICALLY ACCURATE FACTS
    and still not fit PRESENT reality?
    HISTORICALLY when an empire collapsed the Church would stabilize the economy.
    The collapse of the Persian Empire brought the rise of Mohammedanism (Muslim or Islam)
    The collapse of the Roman Empire brought the Roman Catholic Church (dark ages)
    The collapse of the Spanish Empire brought Protestantism and the rise of The English Queen and English Church.
    The collapse of the English Empire brought American Protestantism and the rise of the Mormon Church.
    What religion is dominating?
    There has got to be a New rising religion as we enter Dark Ages 2.0 !
    My brain hurts!

    Alexa! How many people on line,globally?
    …..Alexa: There are 6.2 Billion cellphones and computers on line at this time.
    Alexa! What are people on line doing?
    …..Alexa: More than one billion people are active on Facebook. More than 100 million people use Instagram every month. Facebook announces new data center in Altoona, Iowa. More than 100 million people use Facebook For Every Phone each month.


    Historically THERE HAS TO BE A RELIGION!
    Alexa! What is the subject of the largest Facebook pages over the last 6 months?
    …… Alexa: 4.2 Billion viewers; subject is games

    Where is the NEW Religion?

    For your safety and comfort, please remain seated with your seat belt fastened until the Captain turns off the Fasten Seat Belt sign. This will indicate that we have parked at the gate and that it is safe for you to move about. Cellular phones may only be used once the Fasten Seat Belt sign has been turned off.

  42. The only people hurt will be us, the little people. The banks have off-loaded the stinking bonds/loans to funds and retirement portfolios. The people running the fracking companies, their suppliers, and the banks have already pocketed their gains and are looking for the next scam. If the banks still hold some of the stinky stuff, the FED will make them whole.

  43. I make my living trading breaks of channels. When a channel is broken it’s about a 90 per cent probability that the trend is over. I am glad it reversed as I bought my first physical since since 2009 at 14.20. I was kicking myself when the channel broke.
    Yesterday was weird. Equities and PMs shot up.
    The S and P looks like it may be forming a head and shoulders.

  44. Jason A Carter | November 2, 2018 at 12:42 pm |

    People are living on their computers. People will slowly realize that the entire world and experience is just a virtual reality. This is next religion.

  45. The comment section confuses the physical plane with the monetary plane, time and time again.

    While the pendulum swings, and swings, and swings…

    Looking at gold and silver, and try to ‘price’ them in fiat currencies, is looking at gold and silver as commodities. It’s a fools game. Currently working fine though, as long as there’s enough affordable energy, and, for now, as long as central bank balance sheets keep rising.

    Currencies are on death row as we speak. Today we look at the chair, tomorrow the spunge gets soaked.

    Those who cannot feel the cold water in their faces already keep flying the monetary plane. It is dry, it is warm, and it took you to the most beautiful places for many decades. Have a nice flight.

  46. Steve, here is a very interesting video about fracking for you. From the 1970s !!!


    IMO this fills in a huge piece of the puzzle.

  47. I don’t understand.
    Has the whole world gone crazy?

    I had three almost classic cars.
    But because I could not afford to replace the CATALYTIC CONVERTER ,
    They sat, only occasionally started and driven.
    Then a few years later I tried to find a USED CATALYTIC CONVERTER
    and none were to be found in ALL of North America.
    So, while waiting until they became classics (no need for a CATALYTIC CONVERTER),
    they became worthless!
    I called around for pricing to haul them off my property to the junk yard and instead they offered be $ for the cars!
    I finally accepted $500 for all three cars that are totally worthless!
    I felt bad about taking $500 for all three so I called them up and told them AGAIN
    That the cars ARE WORTHLESS,
    they responded that what they offered was set and they were not offering any more!

    “Ladies and Gentlemen
    as you disembark, we would like to remind you:
    That All round trip tickets have been cancelled
    to convert ALL your currency at the terminal’s currency exchange,
    otherwise your currency will be worthless outside the terminal.
    Additionally to set your watch ahead to January 1St.”

    “On behalf of the pilot and crew
    we wish you an exciting and beneficial adventure
    and enjoyed serving you as we flew through
    ……… The Twilight Zone”

  48. (I tried to post this on the contact page only it insisted I enter the “captcha” value only no “captcha” appeared that I could copy in order to pass through the process.)

    Steve, there is a new YouTube channel titled “Economic Discussion” which reposts one of your X22 Spotlight interviews (from about a year ago I think). Whoever is doing it deletes Dave’s intro from the beginning, and posts a picture of ‘you’ which is the Steve St Angelo who is Toyota CEO for Latin America (something like that). I am fairly sure that is not you. I listened to the video a couple of time before it sunk in who the interviewer was, namely Dave if X22 Report. I don’t know if this is something you’d want to raise a stink about, but felt I should inform you.

  49. I’m going to copy this to Dave too, over at the X22 Report.

  50. Nothing but blue skies on the horizon….
    Permian Drillers Prepare To Go Into Overdrive In 2019
    The majority of company executives and industry analysts expect that the Permian bottlenecks and the wide WTI Midland to Cushing price differential are transitory issues that will go away by the end of 2019, when many of the new pipelines out of the Permian will have started operations.

    Jeff Miller, CEO at Halliburton, the leading fracking services provider in the United States, said last month that the current softening of demand in North America – a combination of offtake capacity constraints and customers’ budget exhaustion – is a temporary issue. Permian constraints will be overcome by the end next year, Miller told Bloomberg TV earlier this week.

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