Maybe the giants of the energy world have ruled longer than any other industrial-age company, but, if you don’t adapt …
Big Oil Companies Have Already Become Dinosaurs
Chatham House, a United Kingdom think tank, suggests the mighty oil companies have failed to adapt and they will perish unless they do.
- The oil markets are going through fundamental structural changes driven by a technological revolution and geopolitical shifts, and the business model that has worked for the last quarter-century is broken.
Oil is looking at $50, and even though Goldman Sachs (GS) is on board, never trust the self-serving propaganda the company puts out.
- Goldman Sachs says they are now forecasting $50.00 a barrel for crude oil by the latter half of this year, a far cry from the $10.00 a barrel crash price they warned about.
One way to get that $50 price is when oil is pushing higher, you turn on the machine that excites the buyer looking to get on board with GS. In 2008 when oil was pushing $120, GS was telling everyone it was headed to $200. Interestingly, when the price collapsed around $148, GS was back at the bar sipping whiskey while the latest-on-board miners were left out in the cold.
Good news ...
- U.S. factory output expanded in April as makers of machinery and cars posted solid increases in production.
- Wall Street opened lower on Tuesday as data showed U.S. consumer prices recorded their biggest increase in more than three years in April, raising the chances of an interest rate hike this year.
When will the market get off this train?