Thursday, February 25, 2016


You know what they say about death and taxes – you cannot avoid them.    Add one more  -  “oil and gas production declines”.
Oil production in the US has been holding steady – stubbornly – this past year….. until the last month.

This could be the start of the “house top drop” that we all know will eventually happen.   Down 133k in one month.   On an
annualized basis – that’s 1.5MM down.   We don’t need 1.5MM in 2016  -  just a drop in US by 750k would firm up oil into the +50’s.

The ramp up in Dec to Jan may be the last gasp effort for the shale players to stay in business.  The drop to below $30 may
have finally started the decline we have been waiting for. 

Buckle up – it could be a wild ride.