Debt Rattle January 14 2015


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    Frances Benjamin Johnston Edgar Allan Poe’s mother’s house, Richmond, VA 1930 • Commodities Tumble to 12-Year Low as US Futures Slide (Bloomberg) • Oi
    [See the full post at: Debt Rattle January 14 2015]


    It seems some don’t get this about the tar sands. Any operator is committed once they start. A shut down any longer than a few hours will be a complete end to the operation. Liquid tar moves through the equipment but if it cools right down the only option is to discard the equipment and restart with new equipment, according to above articles at a cost of 1 billion.

    This means no operator can stop, no matter what their cost. This means no new player is even going to consider this risk for a great deal of time. When oil hit $150 East coast refineries where stuck not being able to stop as well and when the dust settled they were sold, dismantled and sent to China.

    The only difference is this time in the tar sands nothing is going to be dismantled the players are just going to walk away.


    Wow, Brent has fallen to below WTI now. Brent was at $47.60, 21 cents below WTI at the time I checked on Bloomberg, at the time of this comment.

    Formerly T-Bear

    Just observed a post at Vineyard of the Saker which might be of interest.

    That ought to bring up the price of Brent a bit, or more. Also an increase in employment for Greek pipeline construction workers, suspect for Turkish pipeline construction workers also. Looks like idol (sic) fingers just got burnt.


    False alarm with Brent. It’s now back to about $2 above WTI. Dunno what that was about.

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