Peak What? Christmastime in Hell? Part 4
Summary
- A multi part examination of the interrelationship of Oil, Energy, Commodities, BRIC's, Emerging Markets.
- Bonds, Dollar Denominated Debt, Forex Reserves, Reverse Repo, Dollar Swaps, HQLA, Monetary Aggregates, Market Liquidity.
- Syndicated Lending, CDO's, CLO's, Carry Trades, Leveraged Loans, Offshore Dollar Banking and Off Balance Sheet Obligations.
In Part 4, we examine:
- Oil production exposure
- Oil producing sovereign budgets
- Foreign, EM and BRIC dollar debt exposure
- More EM and BRIC dollar carry trade
Production Exposure
Charles Hugh Smith: "Supply can be turned off easily enough, but it can't be expanded as easily. Existing production declines without constant injections of capital and expertise. Oil fields need huge investments of capital to maintain high production."
Chart below courtesy of Charles Hugh Smith. A common sense guide to the economics behind production level declines which have been known to cause squirrely market reactions.
This missive was published as an exclusive to Seeking Alpha. To access the entire text for FREE on Seeking Alpha, please click here. The Nattering One does not receive remuneration if you register, only satisfaction.
There is no cost involved and it has been our experience that if you exert control (by unchecking a box of two) over your communications settings in your Seeking Alpha profile, your email inbox will not be polluted with one bit of Spam (not even the cured pork shoulder variety. Tasty even.)
As we are now a "contributor" at Seeking Alpha, our published articles, instablog and comments can be found here. Please continue to follow The Nattering Naybob here and at Seeking Alpha. We thank you for your support.
- A multi part examination of the interrelationship of Oil, Energy, Commodities, BRIC's, Emerging Markets.
- Bonds, Dollar Denominated Debt, Forex Reserves, Reverse Repo, Dollar Swaps, HQLA, Monetary Aggregates, Market Liquidity.
- Syndicated Lending, CDO's, CLO's, Carry Trades, Leveraged Loans, Offshore Dollar Banking and Off Balance Sheet Obligations.
In Part 4, we examine:
- Oil production exposure
- Oil producing sovereign budgets
- Foreign, EM and BRIC dollar debt exposure
- More EM and BRIC dollar carry trade
Production Exposure
Charles Hugh Smith: "Supply can be turned off easily enough, but it can't be expanded as easily. Existing production declines without constant injections of capital and expertise. Oil fields need huge investments of capital to maintain high production."
Chart below courtesy of Charles Hugh Smith. A common sense guide to the economics behind production level declines which have been known to cause squirrely market reactions.
This missive was published as an exclusive to Seeking Alpha. To access the entire text for FREE on Seeking Alpha, please click here. The Nattering One does not receive remuneration if you register, only satisfaction.
As we are now a "contributor" at Seeking Alpha, our published articles, instablog and comments can be found here. Please continue to follow The Nattering Naybob here and at Seeking Alpha. We thank you for your support.
This missive was published as an exclusive to Seeking Alpha. To access the entire text for FREE on Seeking Alpha, please click here. The Nattering One does not receive remuneration if you register, only satisfaction.
There is no cost involved and it has been our experience that if you exert control (by unchecking a box of two) over your communications settings in your Seeking Alpha profile, your email inbox will not be polluted with one bit of Spam (not even the cured pork shoulder variety. Tasty even.)
As we are now a "contributor" at Seeking Alpha, our published articles, instablog and comments can be found here. Please continue to follow The Nattering Naybob here and at Seeking Alpha. We thank you for your support.
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