[All] Snap shot of the global oil boom going bust...for good!

[Louisette Lanteigne]

Last night the news said how Canada needs to keep oil in the ground because of climate change. That's a pretty white wash version of what's really happening here. 
Basically, the world has drilled and extracted vast amounts of fossil fuel far more than they can ever physically burn without destroying the planet. Volumes are capped to meet a 2 degree temperature rise limit and we can't burn beyond that without destroying our atmosphere. That made the news last night. What they didn't mention was the rest of the story.
First off, view the UK coverage on the same issue from the Guardian newspaper. Watch the video and see what kind of ridiculous fossil fuel surpluses  we're talking about.
http://www.theguardian.com/environment/2015/jan/07/much-worlds-fossil-fuel-reserve-must-stay-buried-prevent-climate-change-study-says?CMP=share_btn_tw
The article notes how global banks including Goldman Sachs and the Bank of England recognize the fact that many fossil fuel investments will be absolutely worthless. At risk are major fossil fuel companies holding the largest oil reserves including Exxon Mobil, BP and Chevron. Nothing is a bigger game changer than dollars and cents. 
So far big oil has lost 200 billion so far: http://money.cnn.com/2015/01/07/investing/big-oil-price-energy-stocks/

Producers around the world and in Alberta companies are INCREASING production choosing to sell huge volumes dirt cheap because they have to pay the bills and they're trying to get as much money as they can before this situation goes belly up. The more they pull out, the cheaper oil gets. Catch 22. It's reasonable to say the tar sands boom is going bust big time. http://calgaryherald.com/business/energy/oil-markets-hit-by-supply-glut-more-than-oil-producers-for-now
Some oil companies are totally worthless already with falling prices: http://www.abc.net.au/news/2015-01-07/santos-shares-worthless-at-current-oil-prices/6004398

Goldman Sachs says 1 Trillion dollars is locked up in Zombie investments particularly in regards to tar sands, Arctic Oil and deepwater drilling. This was after they looked at 400 of the world's largest new oil and gas fields whille excluding US shale. The number of projects running at a loss is incredible. http://www.bloomberg.com/news/2014-12-18/bankers-see-1-trillion-of-investments-stranded-in-the-oil-fields.html

OIl Rigs are Pulling out in dramatic numbers over the next three months.  Analysts at Credit Suisse said of the US Rig Count "We expect the market to loose at least 200 vertical and 200 horizontal rigs and it could easily be more than that."  http://www.wsj.com/articles/oil-firms-pull-back-on-rigs-as-prices-fall-1419892992

Citi Bank downgraded forcast ALL oil producers. http://www.smh.com.au/business/mining-and-resources/citi-slashes-profit-forecasts-for-oil-producers-20150108-12jyv2.html
While the press prints that oil is $50 per barrel, prices received by oil producers in North Dakota's Williston Basin averaged less than $34 per barrel this month.http://www.reuters.com/article/2015/01/07/oil-prices-bakken-kemp-idUSL6N0UM2SK20150107
 Oil is expected to drop down further to $20 per barrel in the days ahead. 
If ever there was a time to stop throwing good money after bad now's the time. Canada must end subsidies and divest, divest divest!  
Lulu
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