Interpreting Middle East Economic News and Analyzing Market Trends

Category: Commentary & Analysis

Shale boom reaches stall speed, stage set for epic collapse

Bakken Shale Production vs Number of Wells

Source: Zerohedge (click on chart for larger image)

We’ve reported on the shale oil hype in the past (most recently here, here and here), but now there is clear evidence that this bubble has reached its peak and is set for disaster.  Here’s the story from Bloomberg:

 

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Is another real estate bubble forming in Dubai?

Rents are up as much as 40% in some areas of Dubai and the stock market is up over 50% so far this year… add this to the 100% rise in the stock market in 2013 and you can see how things seem to be getting out of hand again.

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What’s at stake for the Middle East in Ukraine

Ukraine Farmalnd

Photo Source: Modern Diplomacy

With the crisis in Ukraine going from bad to worse, all attention has been on the increasing tensions in the region and its effects on the Ukrainian and Russian economies.  There is a lot more at stake than these economies alone.  Take for example the Middle East; it has a lot at stake in the Ukraine than most realize.  Not much has been said about this, which needs some attention.

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The shale oil and gas boom continues to fall below expectations

Shale Well Site

Problems continue to mount for US shale oil and gas production.  Not only has production fallen below expectations, investors, including big oil companies, have been forced to write-down billions of dollars in shale investments recently.  The ‘shale revolution’ continues to be more hype than reality.

 

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National Bank of Abu Dhabi pays top dollar to hear Bernanke’s misguided views on the economy

 Why is anyone still listening to Bernanke?

Ben Bernanke along with other high-flying central bankers and politicians were stars in Abu Dhabi recently as they spoke at the annual Global Financial Markets Forum (GFMF).  The two-day event was hosted by the National Bank of Abu Dhabi (NBAD). Other stars included; Jean-Claude Trichet, the former president of the European Central Bank; Lawrence Summers, the former US treasury secretary; and James Baker, the former US secretary of state.  There was some controversy over the $250,000 fee NBAD paid to Bernanke since it was more than his annual salary at the Fed.  The real question that should be asked is why would anyone pay to hear from someone who has been wrong on so many counts?

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