Contra Club

Drilling Our Way Into Oblivion: Shale Was About Land Gambling With Cheap Debt, Not Technological Miracles

Existing wells, those already drilled, will be allowed to be emptied, but then it’s over. Who’s going to continue to pump millions upon millions into something that’s a guaranteed loss? Nobody. And not only that, but lenders will start calling in their loans, and issue margin calls…… Shale was never a viable industry, it was all about gambling on land prices from the start. And now that wager is over, even if the players don’t get it yet.

The Implosion After Oil——Nearly $6 Trillion Of Emerging Market Dollar Debt


One major difference from the last emerging markets blow-up, in the late 20th century, is size: emerging markets today are half the world economy. And they’re about to be blown to smithereens. Sure, oil will play a part. But mostly it will be the greenback. And you know, we can all imagine what happens when you blow up half the global economy …

Why Cheney & Rumsfeld Used Torture: To Prove Their Lies About Iraq’s al-Qaeda Links And WMDs

F]or most of 2002 and into 2003, Cheney and Rumsfeld were also demanding proof of the links between al-Qaeda and Iraq. … There was constant pressure on the intelligence agencies and the interrogators to do whatever it took to get that information out of the detainees, and when people kept coming up empty, they were told by Cheney’s and Rumsfeld’s people to push harder.”

Contra News & Views

How Washington’s Empire Builders Disrupted The Balkans And Shattered Ukraine

For all the political enmity between the “neocons” and “neoliberals” in Washington on, the one thing they agree on is that America ought to be an empire, and dominate the world. And while the “neocons” Kagan and Kristol laid out a vision of “neo-Reaganite” world domination in 1996, it was the “liberal” Zbigniew Brzezinski (and his disciples, such as M. Albright) that imposed their belief that such dominion could only be achieved by crushing Russia. The key to this, in Brzezinski’s own words, was Ukraine……

Three-Fourths Of Bakken Wells Are Uneconomic At $55/Barrel

the current oil price of $55 per barrel is used, the initial production rate has to be increased to 800 BPD in order to break even. According to the J.D. Hughes data, 25% of the wells have an initial production rate of 1000 BPD or more. Accordingly, if oil prices settle out at the current price, the number of wells drilled will be about a quarter of the present number.

That Was Quick: Energy Junk Bond Losses Hit $40 Billion, Spreads Widen To 1000 Bps

A borrowing binge by energy companies in recent years to finance new sources of oil has pushed a measure of leverage among the lowest-rated firms above its 2009 peak, according to CreditSights. The $203 billion of bonds outstanding have lost 14 percent this quarter and are poised for their worst performance since the end of 2008, Bank of America Merrill Lynch index data show. More than $40 billion of value already has been wiped out, Bloomberg index data show…….

The CIA’s “Tortured” Quest For Power And Budgets


By their nature, bureaucracies seek to expand and defend their power, prominence and resources, and the CIA is no exception. The agency’s detention and torture program is a perfect example of how national security institutions pursue their organizational interests at the expense of even the most obvious interests of the nation they are supposed to serve…….