The Brent crude oil price has fallen from $115 in June to under $54 per barrel.
A lower oil price is where production costs make all the difference.  For a long time, analysts have suggested that US production is substantially more expensive and therefore sensitive to oil prices.
This is where the rubber meets the road, as the coming months may reveal the extent of fragility, waste, or mismanagement within the oil industry — in the US and globally.

What is the reason for this prolonged and unforeseen event?
Who wins and who loses as it shakes out?

Today, we don’t have cheap oil to pull us out of the huge mess we are facing as the Global Financial System is loaded with Debt, Derivatives and Fraud as far as they eye can see.
When the highly leveraged Global Financial System finally crashes, it will pull down the energy industry with it.  Thus, a great deal of the supposed forecasted growth of oil and gas will no longer be commercially viable.
This will also destroy a great deal of the PAPER CLAIMS such as futures, options, derivatives and etc, leaving a mad dash for physical assets.   Some think we will see Deflation… we may.  However, I believe it will be DEFLATION in the value of paper claims with a huge RISE in the value of the physical asset.
It will be the disintegration of the 100 paper claims on gold and silver that will implode to zero, while the actual physical bullion will hit levels thought unimaginable.
When this occurs… remember my favorite line:
GOD HATH A SENSE OF HUMOR.

crack srsrocco collapseThe notion of future U.S. Energy Independence will seriously disappoint the market and American public.
This strategy of energy independence put forth by the energy industry and U.S. Govt may buy some time for our anemic economy and the U.S. Dollar, but will back-fire in a big way when overall oil and gas production declines much sooner than expected.