I have just come across this article which will I think put a lot of
preconceptions to bed.
This information came from the Energy Information Authority of the US Government.
I had read of this happening in a report by a consultant in the oil
industry, but now I think it has to be taken at its face value
Quote>
But one of the most important made virtually no headlines at all, and seemed to only appear on the website of the U.S. Energy Information Administration.

Last July the government agency, which has collected mundane statistics on energy matters for decades, quietly revealed that 127 of the world's largest oil and gas companies are running out of cash.

They are now spending more than they are earning. Profits have lagged as expenditures have risen. Overburdened by debt, these firms are selling assets.

The math is simple. The 127 firms generated $568 billion in cash from their operations during 2013-2014 while their expenses totalled $677 billion. To cover the difference of $110 billion, the energy giants increased their debt load or sold off assets.
For more read the kink.

http://www.resilience.org/stories/2014-08-29/a-big-summer-story-you-missed-soaring-oil-debt
Unquote>
You might remember that recently Shell sold its share of Woodside's
NW Development.

‘morning Bazz,

You might get the warmers and peak oilers fired up with this post but you really do need to start checking your sources?

It is not the big summer story you would have us believe, although Andrew Nikiforuk over at “Resilience” would have us believe it is.

All you have to do Bazz, is to click on the link you provided and actually read it. Click on “About” and hey presto, you are on a warmers/peak oil site.

Then follow the link to “Carbon Tracker” and hey presto, you are on another warmer/peak oil site supported by non other than the UNFCCC and The Guardian.

So now you have the filters, how about you go to the source web site at the EIA to check out their report for yourself?

Their you will find all the information that categorically refutes all your assertions. It is not a big story at all, it is business as usual for all these companies. In fact you will see the same business model they always operate. Unless you still want to take this article “at face value”?

You will also see that cash from operations is up over the last five years but flat for the last two, the current year being better than the last three, you will see that debt is actually down as are asset sales.

“An increase in debt is not necessarily a negative indicator. Low borrowing rates have allowed companies to use outside sources of capital (debt) to meet their spending needs.”

“Production in North America, where many of the reporting companies have major operations, has increased dramatically in recent years”.

“Using debt to fuel growth is a typical strategy, particularly among smaller producers. The increased debt load is anticipated to be met with increased production, generating more revenue to service future debt payments”. Source EIA Report.

Do you believe your post because you want to? Or because you are lazy? Or because you want to wind up the warmers? Or because you respond emotively to emotive twaddle?

C’mon Bazz, you can do better than this!

Spindoc, I think you clicked on the wrong link.
I did not look at the carbon tracker link.
The EIA link is there.

There is another longer and more detailed article on oilprice.com a
few months back about the cash flow problem.

Spindoc, here is the article to which I referred, except it was a talk
by Steven Kopits. I think he is from oilprice.com

http://www.resilience.org/stories/2014-02-25/oil-supply-and-demand-forecasting-with-steven-kopits

Short one;

http://tinyurl.com/qd68gra

This is th original hour long presentation at Columbia Uni; Yes I did watch it.

http://preview.tinyurl.com/qd68gra

I would be interested to hear your comments on his talk.

No Bazz, that won't do,

You accused me of clicking on the wrong link? I beg your freeking pardon, you only provided one link and that was the link from which you copied the text!

Now you offer a link to a video that is about capacity constraints rather than cash flow? You must think I was born yesterday. Get your poo together and stop playing childish games.

By all means have a debate but make sure it is related to the debate you started and stop ducking and weaving.