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  • Points 6 and 9 are in conflict.

    Despite all the ra-ra-ra the US economy continues to slow. The oil industry has been the sole growth sector over the past few years. It has recently reduced CAPEX by several trillion dollars and the number of layoffs is in the thousands and continues to grow. Halliburton just announced it will cut over 6,000 jobs.

    Since these are well paid jobs the multiplier effect is significant. I lived through the 1986 oil price collapse which was also due to KSA undertaking similar attempts to drive competition from the market. The outcomes were largely unremarked in the press at teh time but they were not pretty.

    Also see my comment on Angela’s oil price post. The future gets worse.

    Cheers!

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