As we get ready to say goodbye and good riddance to 2012, we are also saying goodbye to oil's historic run. Unless oil makes a last minute run, it appears that West Texas Intermediate oil could have its first losing year since the meltdown in 2008, and only its fourth losing year since the historic low that I called way back in 1999.
In the past, every down year in oil was met with an up year the next year and usually dramatically so. Yet while oil looks strong as we get ready to start the year the prospects of another strong price rebound is less certain. I am not talking about the fiscal cliff but talking about the historic jump in US oil production. The shale gas revolution may write the final chapter in oils historic bull-run and it is not the first time in history that innovation in the oil industry inspired by high prices has done the impossible and crated supply when the naysayers said there were none. I mean come on, remember what they said! We have hit peak oil! What do you expect? Take a scepter and tap on a rock and you expect oil to come out! Well yes. Or I guess you can say trough the use of horizontal drilling combined with hydraulic fracturing .
Read More on International Business Times