interestrateripoff Posted August 15, 2011 Share Posted August 15, 2011 Doesn't Russia have the same problem. All based spending on income from an asset which is extremely volatile. Trouble is the $85 price range is probably a bubble price which the global economy can't afford as it needs cheap energy. Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted August 15, 2011 Share Posted August 15, 2011 Doesn't Russia have the same problem. All based spending on income from an asset which is extremely volatile. Trouble is the $85 price range is probably a bubble price which the global economy can't afford as it needs cheap energy. $85 a barrel is very reasonable IMHO. I believe some of the harder to get stuff requires a price way in excess of $100 for the extraction of it to break even. All the easy oil is running out fast, the hard stuff is going to cost a lot more in the future. Like you say, the world needs cheap energy to survive (fake out the growth). Morale of the story is we're all FUBAR, sorry Quote Link to comment Share on other sites More sharing options...
Jason Posted August 15, 2011 Share Posted August 15, 2011 The way I see it... if the oil producing nations really want to maintain high oil prices slowing production by 5-10% would have a massive effect on oil prices as demand is very inelastic. However I get the impression the likes of Opec state one thing, but the oil companies just pump as much as they want because it's their revenue it's affecting. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted August 15, 2011 Share Posted August 15, 2011 On December 23, 2008, the spot price fell to $30.28 a barrel ahh, a world without banks. Cheap food, cheap fuel, no inflation tax. Pity it didnt last very long. Quote Link to comment Share on other sites More sharing options...
RufflesTheGuineaPig Posted August 15, 2011 Share Posted August 15, 2011 (edited) Like you say,the world America needs cheap energy to survive (fake out the growth). Morale of the story is we're all FUBAR, sorry Fixed that for you. Our petrol prices are 70% tax. We could easily move taxes from production/consumption to real estate, resulting in petrol prices dropping 60% overnight. Edited August 15, 2011 by RufflesTheGuineaPig Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted August 15, 2011 Share Posted August 15, 2011 $85 a barrel is very reasonable IMHO. I believe some of the harder to get stuff requires a price way in excess of $100 for the extraction of it to break even. All the easy oil is running out fast, the hard stuff is going to cost a lot more in the future. Like you say, the world needs cheap energy to survive (fake out the growth). Morale of the story is we're all FUBAR, sorry Yes, but Saudi isnt one of those places. It costs them about $2 a barrel. http://www.altprofits.com/ref/tukda/tag/oil_production_cost.html http://worldsavvy.org/monitor/index.php?option=com_content&view=article&id=488&Itemid=880 Only ten years ago, a barrel fell to what, $8? Its only because of the fact a barrel is traded by the banks, all making their speculative markup, about 50-60 times on average before reaching the consumer. There is no reason other than that we arent paying $25-30 a barrel. Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 15, 2011 Share Posted August 15, 2011 Doesn't Russia have the same problem. All based spending on income from an asset which is extremely volatile. Trouble is the $85 price range is probably a bubble price which the global economy can't afford as it needs cheap energy. The Saudi Government in 2008 budgeted for 2009-2012 on an oil price of $45. They have been getting over $100 sustained on Arabian Light (Heavy stuff trades at $20-$30 discount). Thats why this spring they were handing out money like it was going out of fashion. Even expats got a slice of the cake - I got two months base salary unexpectedly to celebrate the Kings healthy return to the Kingdom Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted August 15, 2011 Share Posted August 15, 2011 Oswald Clint, an analyst at Sanford C. Bernstein thinks Saudi Arabia may reduce its oil output sooner than it did after the financial crisis in 2008. He argues that the Saudi authorities need oil prices above $85 a barrel to meet their spending obligations. For example, the Arab nation plans to spend more than $100bn (£61.4bn) on power plants and electricity distribution networks by 2020, as domestic demand soars. Demand is expected to rise by about 8pc a year for the forseeable future. Why do we have to pay for their electricity infrastructure? It should be added to their electricity bills of the future. If their people have an increasing demand for electricity let them pay for it - like we do ours. Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted August 15, 2011 Share Posted August 15, 2011 (edited) Yes, but Saudi isnt one of those places. It costs them about $2 a barrel. http://www.altprofits.com/ref/tukda/tag/oil_production_cost.html http://worldsavvy.org/monitor/index.php?option=com_content&view=article&id=488&Itemid=880 Only ten years ago, a barrel fell to what, $8? Its only because of the fact a barrel is traded by the banks, all making their speculative markup, about 50-60 times on average before reaching the consumer. There is no reason other than that we arent paying $25-30 a barrel. Interesting links, cheers for sharing, it's those evil banksters again, we really must got shot of them once and for all Edited August 15, 2011 by MrFlibble Quote Link to comment Share on other sites More sharing options...
MrFlibble Posted August 15, 2011 Share Posted August 15, 2011 Fixed that for you. Our petrol prices are 70% tax. We could easily move taxes from production/consumption to real estate, resulting in petrol prices dropping 60% overnight. Don't say that, we've enough land whales wobbling around as it is without 2tn overcoats becoming even cheaper to run Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 15, 2011 Share Posted August 15, 2011 Why do we have to pay for their electricity infrastructure? It should be added to their electricity bills of the future. If their people have an increasing demand for electricity let them pay for it - like we do ours. You don't. Find an alternative source of energy / oil and problem solved. Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 15, 2011 Share Posted August 15, 2011 (edited) Fixed that for you. Our petrol prices are 70% tax. We could easily move taxes from production/consumption to real estate, resulting in petrol prices dropping 60% overnight. Removing that would shift demand up in the medium - long term and thus the oil price. It would simply involve more transfer of wealth from consumers to producers. Edited August 15, 2011 by Kurt Barlow Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 15, 2011 Share Posted August 15, 2011 Why do we have to pay for their electricity infrastructure? It should be added to their electricity bills of the future. If their people have an increasing demand for electricity let them pay for it - like we do ours. Saudi Arabia is going to build Wind farms. Perhaps they don't read the Torygraph / Dail Wail Recruitment of personnel already underway https://krb-sjobs.brassring.com/1033/ASP/TG/cim_jobdetail.asp?partnerid=25270&siteid=5398&AReq=4076BR&Codes=ASC-W-HomePage Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted August 15, 2011 Share Posted August 15, 2011 The Saudi Government in 2008 budgeted for 2009-2012 on an oil price of $45. They have been getting over $100 sustained on Arabian Light (Heavy stuff trades at $20-$30 discount). Thats why this spring they were handing out money like it was going out of fashion. Even expats got a slice of the cake - I got two months base salary unexpectedly to celebrate the Kings healthy return to the Kingdom That's very generous. The govt should have done this for the Royal Wedding. Quote Link to comment Share on other sites More sharing options...
AteMoose Posted August 15, 2011 Share Posted August 15, 2011 Yes, but Saudi isnt one of those places. It costs them about $2 a barrel. http://www.altprofit...ction_cost.html http://worldsavvy.or...=488&Itemid=880 Only ten years ago, a barrel fell to what, $8? Its only because of the fact a barrel is traded by the banks, all making their speculative markup, about 50-60 times on average before reaching the consumer. There is no reason other than that we arent paying $25-30 a barrel. Nahhh its nothing other than normal supply and demand, oil is traded more trades doesn't equal a higher price. Essentially there is a buyer and a seller trying to agree on a price, even on the trading floors. Arguably the more trades you have the closer you get to the real price, if something is a higher price people want more of it because they are running away from something else (currencies/anything that looks like it isnt bolted to the floor) Quote Link to comment Share on other sites More sharing options...
nohpc Posted August 15, 2011 Share Posted August 15, 2011 Surely this article needs to tell us the number of barrels they need to sell at 90 dollars. If they reduce production by 50% but sell at double the price they dont win. I dream of the day we can tell the middle east to take their oil and go fluck themselves Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted August 15, 2011 Share Posted August 15, 2011 Surely this article needs to tell us the number of barrels they need to sell at 90 dollars. If they reduce production by 50% but sell at double the price they dont win. I dream of the day we can tell the middle east to take their oil and go fluck themselves First we have to find something else on which to base our economy and way of life. Quote Link to comment Share on other sites More sharing options...
Georgia O'Keeffe Posted August 15, 2011 Share Posted August 15, 2011 First we have to find something else on which to base our economy and way of life. FONDUE the nectar of the gods Quote Link to comment Share on other sites More sharing options...
South Lorne Posted August 15, 2011 Share Posted August 15, 2011 First we have to find something else on which to base our economy and way of life. ...an oil substitute.... Quote Link to comment Share on other sites More sharing options...
MrPin Posted August 15, 2011 Share Posted August 15, 2011 Saudi Arabia is going to build Wind farms. Perhaps they don't read the Torygraph / Dail Wail They should build sun-farms! You can make solar cells from sand! Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 15, 2011 Share Posted August 15, 2011 They should build sun-farms! You can make solar cells from sand! Plenty of them too although the sand and dust is a ******* in terms of reducing output. Supposedly our car park is going to be covered in solar panel clad shelters. Quote Link to comment Share on other sites More sharing options...
MrPin Posted August 15, 2011 Share Posted August 15, 2011 Plenty of them too although the sand and dust is a ******* in terms of reducing output. Supposedly our car park is going to be covered in solar panel clad shelters. I was near where you are now, nearly 20 years ago. I couldn't believe they hadn't made the sun/sand/electricity connection! I guess they will employ Pakistanis to clean the panels! Quote Link to comment Share on other sites More sharing options...
Crashman Begins Posted August 15, 2011 Share Posted August 15, 2011 Nahhh its nothing other than normal supply and demand, oil is traded more trades doesn't equal a higher price. Essentially there is a buyer and a seller trying to agree on a price, even on the trading floors. Arguably the more trades you have the closer you get to the real price, if something is a higher price people want more of it because they are running away from something else (currencies/anything that looks like it isnt bolted to the floor) So you want something.... and the higher it traders, the more others want it... What do you DO ? Quote Link to comment Share on other sites More sharing options...
Crashman Begins Posted August 15, 2011 Share Posted August 15, 2011 Surely this article needs to tell us the number of barrels they need to sell at 90 dollars. If they reduce production by 50% but sell at double the price they dont win. I dream of the day we can tell the middle east to take their oil and go fluck themselves What if they reduce production but accept ... another form of payment ? Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 15, 2011 Share Posted August 15, 2011 I was near where you are now, nearly 20 years ago. I couldn't believe they hadn't made the sun/sand/electricity connection! I guess they will employ Pakistanis to clean the panels! The same guys I pay 15 riyals to clean my car no doubt! Quote Link to comment Share on other sites More sharing options...
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