There was a fascinating report from Bloomberg this morning. Globally, there are now more than $1 trillion in oil and gas assets which are unrecoverable thanks to the decline in crude, excluding US shale.
Deep water, Arctic locations, tar sands, ridiculous topography…all add up to more than $1 trillion stranded. And these numbers are not inclusive of the US shale which is supposedly the heart of this story.
If you were looking for a smoking gun, pointing to this whole debate of Saudi Arabia and market share being sordid nonsense, that would be it.
But at most that proves American financial journalists are idiots. Which beckons the question: then why is crude trading below $60?
If you have the answer to that question, I’ll show you a rich man.