Oil Business in a Deflationary Spiral: Wall St. For Main St.Interview

Posted in Audio/Video & Articles on July 13, 2017

Art Berman: Oil Business in a Deflationary Spiral


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5 comments on this entry


  1. Another Art Berman classic. Thank you.


  2. Thank you for your analysis and clear voice.


  3. There’s some parts of the interview that are sober and accurate (e.g. saying the price is about right).

    There are some other parts that are bad. Failure to mention US oil growth (on a pace for 1 MM bpd increase per year before price dropped from the mid 50s). Or the comments about Saudis running out soon (Matt Simmons and Stuart Staniford look very silly for their comments from 10 years ago).


  4. Energy is the economy

    I wonder if there is a multiplier on energy to GDP ?

    If $50/b oil is $100/b refined fuel times 30 billion barrels equals $3T and produces $30T world GDP plus energy mix produces $80T world GDP, then $100/b oil plus energy mix would have to produce $160T world GDP to sustain $100/b oil ?

    When oil reached $150/b in 2008 we had a financial collapse since the GDP wasn’t there to support that price.

    The period of $100/b coincided with the QE program when trillions of dollars were printed. The debt expanded much faster than GDP and global debt now stands at $220T.

    After the end of QE in 2014 the oil price collapsed. In 2015 world GDP contracted by 5.7% in dollar terms and in 2016 it was stagnant.

    Lower for longer ?


  5. None