NORTH KOREA PUT ON NOTICE: DON'T PUSH ME.

NORTH KOREA  PUT ON NOTICE: DON'T PUSH ME.
"North Korea best not make any more threats to the United States. They will be met with fire and fury like the world has never seen. As I said, they will be met with the fire and fury and, frankly, power." - President Donald John Trump. ICHEOKU says the Michelin Tire midget at Pyongyang is definitely courting trouble and messing with the wrong man. He probably thinks Barack Obama the redline president is still in office; but unbeknownst to him there is a new sheriff in town and his name is Donald John Trump and he does not mess around. Hopefully China can rein in the little man before he commits mass suicide with his North Korean people.

HILLARY CLINTON LOST THE ELECTION - CHARLES SCHUMER

HILLARY CLINTON LOST THE ELECTION - CHARLES SCHUMER
"When you lose to somebody who has a 40 percent popularity, you don’t blame other things — Comey, Russia — you blame yourself. So what did we do wrong? People didn’t know what we stood for, just that we were against Trump. And still believe that." - Senator Charles Schumer, Senior Senator from the State of New York and Democratic Minority Leader in the Senate. ICHEOKU says the statement spoke volume and it spoke for itself. Finally it seems the Democrats have finally turned the corner and are now ready to face up to their abysmal performance in the last presidential election by acknowledging that the American people indeed choose Trump over their Hillary Clinton. Thankfully, they will also now rest their "Russians Did It" cockamamie and find a message they can present to the people and for the good of the country.. Time to move the process forward is now as American people did not buy into the crap of a Russian collusion which they tried unsuccessfully to sell to them.

IT IS GAME ON: MAYWEATHER FIGHTS MCGREGOR

IT IS GAME ON: MAYWEATHER FIGHTS McGREGOR

ICHEOKU says August 26 is the day history will be made as two of the world's most interesting athletes square off in the ring. Boxing champion Floyd MayWeather and mixed martial arts champion Conor McGregor, will fight on August 26 in Las Vegas, Nevada. ICHEOKU says not in a position yet to place bet on who will win the fight. Salute


BIAFRA EXIT FROM NIGERIA: A CALL TO DUTY

BIAFRA EXIT FROM NIGERIA: A CALL TO DUTY
ICHEOKU says the time has come and the time is now for the Indigenous Peoples of Biafra to be allowed to choose their self governance and exit from Nigeria going forward.. A referendum on the future of Biafra is a legitimate demand of the people and it is their right to so do. The people of the Nation of Biafra want to of their own way because of the hostilities from other member nations of Nigeria. Let the United Nations order a referendum and let the people decide in their own Biafraexit.

PDJT ISSUES VERDICT ON ISLAMIST TERRORISTS


"There can be no coexistence with this violence. There can be no tolerating it, no accepting it, no excusing it, and no ignoring it. Every time a terrorist murders an innocent person and falsely invokes the name of God, it should be an insult to every person of faith. Terrorists do not worship God; they worship death. If we do not act against this organized terror, then we know what will happen and what will be the end result. Terrorism's devastation of life will continue to spread, peaceful societies will become engulfed by violence, and the futures of many generations will be sadly squandered. If we do not stand in uniform condemnation of this killing, then not only will we be judged by our people, not only will we be judged by history, but we will be judged by God." - President Donald John Trump.


BBOB: BRING BACK OUR BIAFRA

ICHEOKU says it is worth fighting for, self determination and it is not a crime for a people to aspire for self governance. Indigenous Peoples of Biafra are marching forward and hopefully they will soon get to the promised land. Viva Biafra.
#BringBackOurBiafra.




"When two raging fires meet together, they do consume the thing that feeds their fury. Though little fire grows great with little wind, yet extreme gusts do blow out fire." - William Shakespeare, The Taming of the Shrew


WHAT REALLY MATTERS IN LIFE - STEVE JOBS

“I reached the pinnacle of success in the business world. In others’ eyes, my life is an epitome of success. However, aside from work, I have little joy. Non-stop pursuing of wealth will only turn a person into a twisted being, just like me. God gave us the senses to let us feel the love in everyone’s heart, not the illusions brought about by wealth. Memories precipitated by love is the only true riches which will follow you, accompany you, giving you strength and light to go on. The most expensive bed in the world is the sick bed. You can employ someone to drive the car for you, make money for you but you cannot have someone to bear sickness for you. Material things lost can be found. But there is one thing that can never be found when it is lost – Life. Treasure Love for your family, love for your spouse, love for your friends. Treat yourself well. Cherish others.” - SJ

EVIL CANNOT BE TRULY DESTROYED.

"The threat of evil is ever present. We can contain it as long as we stay vigilant, but it can never truly be destroyed. - Lorraine Warren (Annabelle, the movie)


ONLY THE POOR WISH THEY HAD STUFF?

“I’m not that interested in material things. As long as I find a good bed that I can sleep in, that’s enough.” - Nicolas Berggruem, the homeless billionaire.

Saturday, June 4, 2016

RIP OPEC: 1960 - 2016, AN ARTICLE BY MATTHEW DiLALLO


Oil Pump With Red MoonAfter another failure to agree on a coordinated oil policy, its clear that the OPEC we once knew has ceased to exist. For more than five decades OPEC has ruled the oil market with an iron will. It decided how much oil to supply to the market, which would all but guarantee a fair price for its members. However, the first warning sign that the mighty OPEC had started to lose its grip on the oil market showed up in late 2014, when it broke from its previous practice of protecting a fair market price for oil by instead focusing on protecting its share of the oil market. Now, after two failed meetings at which the organization couldn't come to an agreement on a coordinated effort to stem the oversupply, it has become clear that the OPEC the oil market once knew and feared is no longer in existence. 

No longer in control:- For decades OPEC had controlled the market and its members through quotas, which were the maximum output levels each member country was allowed to produce. That was intended to keep the oil market well supplied, but not so well supplied that it had a negative impact on the price. However, with the shift from price protection to market protection, OPEC relaxed its practice of policing quotas. As such, many of its members have routinely exceeded their production quotas in recent months, with OPEC's production often as much as 2 million barrels per day above its 30-million-barrel-a-day output ceiling. 

The problem with relinquishing some control over quotas is that it has become impossible to regain that control. That became clear in the past week when OPEC failed to reach an agreement on a new production ceiling. This marks the second time in nearly as many months that OPEC failed to reach an agreement on a coordinated effort to deal with the persistent oil glut that has hampered the market for nearly two years. 

With this latest failure it has become clear that OPEC is no longer able to meet its objective to "co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers." That, in effect, signals its demise as an entity that can drive the oil market. It is a demise that has been made clear by the fact that the price of crude barely budged after each of its past two failed meetings. 

Cause of death: greed and American ingenuity:- OPEC's decision in late 2014 to back off on protecting oil prices stems from its desire to control a large enough share of the oil market to be relevant. Those market-share concerns were stoked as OPEC was starting to lose share in the oil market, due in part to the emergence of U.S. shale production. In fact, it was also losing what was once its top customer: 

US Crude Oil Field Production Chart
As that chart shows, the surge in U.S. oil production directly displaced OPEC's oil, with its exports to the U.S. falling by more than half. 

Given that this production surge was fueled by triple-digit oil prices, OPEC reversed course and pumped at nearly max capacity in order to impair this upstart rival. While that has clearly worked with U.S. imports from OPEC rising as U.S. production declines, it has created a longer-term problem for OPEC, which is the fact that shale production no longer needs triple-digit oil to thrive. 

Instead, thanks to falling costs and some good old American ingenuity, shale drilling's breakeven point has plummeted. Wells that once needed oil over $75 a barrel to break even are now doing so at as little as $30 a barrel. This has come thanks to a combination of efficiency and productivity gains as well as technological improvements. 

EOG Resources (NYSE:EOG) is a prime example of this. The company is now getting 95% more oil per lateral foot on a horizontal well than just two years ago. Meanwhile, EOG Resources' completed well costs dropped by as much as 42% in the Permian Basin and 30% in the Bakken, with two-thirds of these costs savings estimated to be sustainable at higher oil prices. Furthermore, not only does EOG Resources have more than a decade of what it terms "premium drilling locations," which are profitable to drill at a $30 oil price, but the company's enhanced oil recovery projects in the Eagle Ford shale have nearly doubled the recovery factor of legacy wells, while being solidly profitable at $40 a barrel. 

Meanwhile, global producers like ConocoPhillips(NYSE:COP) have shifted their focus to become much more flexible. ConocoPhillips can ramp its production up or down in response to oil-market needs thanks to the short-cycle nature of shale wells. Furthermore, the company continues to lower its costs through efficiency gains, which has it well positioned for a future likely driven by greater oil price volatility

In a lot of ways U.S. shale has become the new swing producer in the oil market, which was the role that OPEC used to play. As such, it no longer seems to matter if OPEC freezes, lowers, or increases its output, because market-driven factors will determine whether companies like EOG Resources and ConocoPhillips increase or decrease investments that will add or hold back production growth. 

Investor takeaway:- OPEC had a great run, but it would appear that it has become irrelevant in the oil market. In some ways it caused its own demise, because its decision to push down oil prices caused American producers to reduce their costs to survive. Many did just that, with a growing number of shale plays now globally competitive at lower oil prices. This is putting the American oil industry in position to overtake OPEC as the new swing producer in the oil market.

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