william the wie
Gold Member
- Nov 18, 2009
- 16,667
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Two memes currently making the rounds are:
The Dow will drop by 80% this year.
Oil will climb 50% this year.
Either of these things are possible but both?
Wells that return contribution margins at $30/bbl will also return higher contribution margins at $45/bbl and pipelines will be built to those wells to raise the payment at wellhead to the equivalent of $60-90/bbl without pipelines. That sounds like a gold rush to me.
The US has an official interest rate above 0 and most of the world does not. So where is investment money likely to flow to, if there is a world wide economic collapse? On the face of things it sounds like the US is the only game in town. Anybody see any reason why either of the two memes should work, much less both?
The Dow will drop by 80% this year.
Oil will climb 50% this year.
Either of these things are possible but both?
Wells that return contribution margins at $30/bbl will also return higher contribution margins at $45/bbl and pipelines will be built to those wells to raise the payment at wellhead to the equivalent of $60-90/bbl without pipelines. That sounds like a gold rush to me.
The US has an official interest rate above 0 and most of the world does not. So where is investment money likely to flow to, if there is a world wide economic collapse? On the face of things it sounds like the US is the only game in town. Anybody see any reason why either of the two memes should work, much less both?