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Russia is heavily dependent on revenues from oil exports, making its currency vulnerable to falling prices.
Russia is the world's second-largest oil exporter, with oil and gas accounting for 70% of its exports and half of government revenues.
Oil prices have fallen by more than a third since the summer, while the rouble is down nearly 40% against the dollar since January.
originally posted by: lonesomerimbaud
How is this going to play out?
OPEC Policy Ensures U.S. Shale Crash
The U.S. Federal Govermnemt (thru its "Offshore-Leasing") rakes in approx. 30%-Royalty-Fees from "U.S. Offshore Production".
I have the "OPINION" that Offshore-Producers need $95-ish-per-Barrel to Break-Even ... ( i.e. Cost-of-Production ).
My "OBSERVATION" (If my "OPINION is correct) is that U.S. "Offshore-Production" will also be affected ...
U.S. Federal-Revenue will also ... DROP!
(in case anyone's interested, I also believe the Onshore-(non-shale)-Cost-of-Production is 60+ish and the U.S. Federal Royalty-Tax on this Production is 15%)
The Saudis will be the BIG-WINNERS in this scenario where the U.S. will have to import/buy Saudi-Oil to make up for any shortage of U.S. total oil production.