This weeks cartoon offers an opportunity to remind everyone in America that the price of oil you see on TV, or hear on Bloomberg Radio, or read about on MSN, is NOT what unhedged oil producers in our country are actually getting paid at the well head. No "bottom" has been found in the oil market and there is no "recovery" underway. Marketing differentials deducted from TV prices because of oversupply and lack of storage are massive at the moment and everyone is affected, from Shale R Us, LLC down to the smallest stripper well operator you can imagine. Deduct $12-15 per BO from those TV prices and that is the real deal.
No unhedged oil producer in America is making money at $25 NYMEX WTI heard on CNBC. NONE. All those millions of barrels of oil still being produced, and the associated gas being flared along with it, is a waste. No politician nor regulator in the United States has the cojones to do anything about it. This lack of leadership is going to cause great harm to our country in the next 5-8 years; make no mistake about it.