THOSE MOTHERFRACKERS! Major Topics

•Analysis of crude oil prices in 2014 & 2015•OPEC analysis• ISIS infiltration in Syria & Iraq•The Syrian conflict•Boko Haram’s Reign of Terror in Nigeria

THOSE MOTHERFRACKERS! Major Topics

•THOSE MOTHERFRACKERS! financing, business model, and outlook•The myth of U.S. energy independence•Impacts of low oil prices•Global oil demand•U.S. imports analysis

The Organization Of Petroleum Exporting Countries (OPEC)

• OPEC’s decision to maintain crude oil production levels, on November 27, 2014, resulted in crude oil prices falling precipitously. Both WTI & Brent prices fell below $50 per barrel, and are still struggling to climb above $50 per barrel. • OPEC’s aim is to maintain its market share, increase global crude

oil demand, and hurt higher cost producers.• Several Non-OPEC producers have been greatly impacted from

lower oil prices, including: Brazil, Canada, and THOSE MOTHERFRACKERS! • By 2020, OPEC expects Brent oil prices to rise to $80 per barrel.

Boko Haram’s Reign Of Terror In Nigeria

• Since 2009, Boko Haram has killed thousands of Nigerian civilians.• The United Nations estimates that more than 2.3 million

people have fled Nigeria, due to the violence.• More than 250,000 people have fled to neighboring

countries, including: Cameroon, Chad, and Niger.• Nigeria’s armed forces in late October 2015,

successfully rescued 300 people, mostly women and children, who were captured by Boko Haram.

The Syrian Conflict• Syria has been embroiled in a brutal civil war for more than 4

years.• Syria’s President, Bassar Al Assad has used government forces to

halt protests, and to murder innocent civilians.• Barrel bombs are being used against opposition forces and

civilians, which have caused many deaths, and scarred people for life.• Food and medical supplies have been cut off to the Syrian

population by Syrian government forces, in order to stifle the opposition.• More than 4 million Syrian civilians have been displaced into

Jordan, Lebanon, Iraq, and Turkey.

ISIS Terror in Iraq, Syria, & Libya• The Islamic State, (ISIS), aims to unite the world’s Sunni Muslims,

under a single political and religious entity.• ISIS is killing anyone who opposes them, including, Christians and

fellow Muslims.• ISIS is financed through a variety of criminal activities.• Examples of barbaric executions carried out by ISIS, include:

beheadings, mass shootings, crucifixions, and drownings in cages.• Jordan and France have also joined the U.S. in conducting air strikes

against ISIS.

Venezuela• In 2014 Venezuela’s GDP exceeded $538 billion.• Venezuela is experiencing a severe recession, and

citizens are struggling due to massive food shortages, and severe inflation.• Since 2007, China has loaned Venezuela $50 billion.• Venezuela possesses the highest oil reserves, globally,

which are estimated at 300 billion barrels.• Venezuelan citizens enjoy the lowest gasoline prices in

the world, due to massive government petroleum subsidies.

The Origin of THOSE MOTHERFRACKERS!• George Mitchell is credited for being the pioneer of the shale

drilling revolution, in the U.S.• The Shale Gas Revolution emerged as newer technologies

were developed, including hydraulic fracturing, (fracking), and horizontal drilling.• Fracking is the process, which uses highly pressurized water,

which is then mixed with sand and chemicals, to penetrate source rock underground, which releases crude oil and natural gas to the surface.• The Shale Gas Revolution has led to the rise of

THOSE MOTHERFRACKERS!

Some of the largest MOTHERFRACKERS!, include:

•Apache•Chesapeake Energy•Continental Resources•EOG Resources•Pioneer Natural Resources

In 2015, Prolonged Oil Price Weakness Has Forced THOSE MOTHERFRACKERS! To:• Issue additional equity• Issue bonds to raise capital or extend maturities•Drastically cut capital expenditures to conserve capital•Divest assets including shale acreage• Slash dividends•Have credit lines contracted• Enact robust hedging programs

Shale Oil Production Has Been Enhanced Due To Several Factors, Some Of Which Include:

• Seismic imaging improvements• Better fracking materials• Increased efficiency• Better spacing between wells (downspacing)• Improved drilling techniques

Global Oil Demand• Global oil demand exceeds 94 million barrels per day, (bpd), in

2015, as low oil prices has increased oil demand globally.• In 2016, the International Energy Agency, (IEA), expects global

crude oil demand to rise by 1.4 million barrels per day, (bpd), to nearly 96 million barrels per day, (bpd).• The global oversupply of crude oil will abate, in 2016, as global

oil demand continues to increase, and as Non-OPEC supply, continues to contract. • Global oversupply reached between 2 million barrels per day,

(bpd), to 2.5 million barrels per day, (bpd), at the end of 2014.

Vehicle Sales In The U.S.• U.S. vehicle sales are on pace to purchase more than 17

million vehicles, in 2015.• Low gasoline prices and very low interest rates are

driving vehicle sales.• General Motors, Ford, and Nissan are all reporting

record Sport Utility Vehicle sales.• Purchases of hybrid and electric vehicles are averaging

3 percent of total vehicle sales.

Positive Impacts Of THOSE MOTHERFRACKERS!

• Increases in U.S. domestic supply• Greater potential to achieve energy independence• Greater energy security• Reduced crude oil imports and reduced trade deficit• Increased U.S. employment• Greater ability to increase oil output expeditiously

Annual U.S. Crude Oil Production For Years 2009-2014

• 2009 5.35 Million• 2010 5.47 Million• 2011 5.63 Million• 2012 6.47 Million• 2013 7.45 Million• 2014 8.71 Million

Source: U.S. Energy Information Administration

THOSE MOTHERFRACKERS!• THOSE MOTHERFRACKERS! describes the ongoing crude war between OPEC and the U.S. shale oil producers, otherwise known as THOSE MOTHERFRACKERS!• THOSE MOTHERFRACKERS is available on Amazon & iTunes, for $2.99. •Developed by Vincent J. Lentini • Vincent J. Lentini is an energy analyst for BMI Research

Other eBook Titles, Include:

• The Global Crude Oil Addiction• Canada Will Emerge As An Energy Superpower• Renewable Energy’s Impact On Hydrocarbon Dominance• The Shale Gas Revolution• FRACK OFF!• LATINO HEAT• CHINA’S CATACLYSM

ALL eBooks are available on Amazon & iTunes