Russia cuts it's own Oil Throat

originally posted by: Dimithae
a reply to: noeltrotsky

They can claim whatever they want now,but this story as it was happening says something else.

www.reuters.com...

I think they blocked calls from OPEC countries that were complaining AFTER the meeting to keep Oil production at high levels. Like they didn't want to listen to the complaining about the policy.

Good find thou! I think there is more to OPEC's decision to pump lots of Oil than simply a disagreement with Russia and Mexico. I think the US gov sold out it's Shale industry to pressure Russia. I don't have an Obama quote to prove that however.

a reply to: noeltrotsky

You'll never find it either,there is no way obama is going to admit that no matter how deep he was in it.
second line

I remember when they used to sell gas for really cheap, before it was traded and the rich started profiting off of it. Sure, oil execs invest in the speculation and their shareholders in their company think the execs are just making money and loosing money like they are. The money made from their salary is just a small part of their income.

That is how it works, the same with the big farmers, they learn to invest in comodities and their big farms do not make them that much but they get rich trading.

The name traitor originated from the trading practices of the Jews long time ago. They would sell out their own people if they sensed they could gain from it. Since then lots of people have learned how to do that while the Jewish people try to make sure to look after their own now but not the people they trade with. Oh well

a reply to: noeltrotsky


Not long ago there was a guy named Jim Prentice who got elected to the Harper Govt. and who became Minster of Indian Affairs .He was a likable guy but during his time as minster not muched changed for the Natives . He left politics and like most revolving doors from Govt. wound up at CIBC where he could now concentrate on his family .When the pipeline to go west came up in back rooms they needed someone the Natives would talk with ..Out from the bank came Jim Prentice to be a lobbyist for the oil companies and get a deal with the Natives ..."Too little too late and the waist of a good man " was the Native cry in response to Jim ...Now what ? well Jim needing to get this thing through and seeing the only venue sought the Alberta's Primer position .He is there now but I suspect he will be doing some legal moves to try and force it through .

He is caught between a rock and a hard place because of the low prices and the Natives who hold some very important cards .It can only go through with their blessings and they dont seem to care to be bought out and fooled again ....time will tell though .

a reply to: the2ofusr1

I think the NEB has the power to push the Canadian Oil pipelines through. They did have their powers conveniently boosted just prior to the start of the pipeline reviews.

originally posted by: noeltrotsky
The Saudis have claimed Russia cuts it's own Oil throat.

www.businessinsider.com...

A Saudi Oil ministry adviser has claimed in a recent speech that Russia and Mexico refused to reduce production and OPEC decided to also maintain production.

fingfx.thomsonreuters.com...

Specifically in the speech he mentions a meeting with Russia and Mexico only days before OPEC's announcement to not cut production where Russia refused to reduce production. In the meeting they refused to cut oil production in conjunction with OPEC.

This theory fits the Occam's Razor theory. Non-OPEC producers have often refused to cut production leaving the pain of selling less up to OPEC who does so to keep prices high. In this situation the Saudis felt sending a message to non-OPEC members was a good idea.

Being a conspiracy site, I still feel the US had a hand in OPEC's decision to flood the market with Oil. The sanctions against Russia haven't produced anything painful to Russia beyond some different vacation destinations for a few rich people. The price of Oil tanking has crippled Russia and several other Oil producers, including US companies.

www.businessinsider.com...

US Oil is hanging on barely as bankruptcies and high cost financing show an industry on the verge of disaster.

So if you want to know who to thank for those low prices at the Gas pump, thank Vladimir Putin. I thank him for sticking it to the rich Oil men...even if he stuck it to himself!

* here Putin seems to realize he messed up

S+F

This is a great OP, noel.

I only challenge 2 aspects:

1 - Pump prices here in Canada have not changed a bit due to low barrel. Here in Vancouver we are paying $1.20 - 1.35/litre. It hit $1.15 for a week. At peak barrel prices we were paying $1.35 -1.45/litre. There has been a %100 spread on barrel prices and less than %10 spread on pump prices. The only thing I am enjoying is vindication that I we are all being robbed and this is Russia fiasco is not effecting western oil producers as much as it should.

Couldn't dare throw big oil lobby and contribution money under the bus... threw the constituents under it instead. Great leaders we have.

2 - That look on Putin's face looks more like "20 years ago I would rip your balls off." Obviously that is just opinion.

a reply to: MALBOSIA

Agreed on the Gas pump prices not being dropped as much as they should. Clearly our elected politicians should be screaming bloody murder. If people elect me I'll nationalize Canada's Oil and Gas industry on my first day in office. My middle name isn't Hugo for nothing!!!

Vancouver Gas Taxes
www.gvrd.com...

Well, from the "for what its worth" department, here is the REAL deal on oil:

There are over 1000 drilled and capped wells in the Gulf of Mexico alone, plus over 1000 drilled and capped in the U.S. Northwest.

The drop in oil price means the oil companies discontinue expensive exploration and drilling and start connecting and pumping already drilled wells.

I KNOW that the following is planned: By mid 2016 oil at $35 a barrel. U.S. will be a net exporter. This is oil company driven, not by any plan by the blithering idiot U.S. bureaucracy.

Why? My guess is that the oil companies know that high $$ oil enables alternative energy research and development. They also know that the lifetime of fossil fuel usage is drawing to an end due to ongoing research and development. So they plan to sell all they can while they can. As a side effect it will be a disaster to both OPEC and Russia.

originally posted by: SubSea
Why? My guess is that the oil companies know that high $$ oil enables alternative energy research and development. They also know that the lifetime of fossil fuel usage is drawing to an end due to ongoing research and development. So they plan to sell all they can while they can. As a side effect it will be a disaster to both OPEC and Russia.

Interesting. It is natural for established market players to lower prices to kill off competition. Could it be Oil Companies doing it...or Saudi Arabia doing it? I always thought US Oil was just trying to get in on the Gold Rush as another poster aptly mentioned. Could OPEC led by the Saudi's be trying to crush Alternative Energy? I didn't see Alt Energy as such a big threat to Oil right now to justify that move...but it could be.

Good point!

There's simply too much oil supply and not enough demand. I believe companies in countries like Russia, Canada, Saudi Arabia and the US can't stop producing because if they do they wont be able to pay their debts back to their lenders. The drop in oil prices and rise in inventories is putting immense pressure on the economy.

This article is a bit older but it describes how the drop in oil could cause another credit crunch on the scale of the one in 2008. When this article was written oil had only dropped 34% since last summer now it's more than 50%. Could Oil Collpase Cause Next Credit Crisis?

originally posted by: rickymouse
The name traitor originated from the trading practices of the Jews long time ago. They would sell out their own people if they sensed they could gain from it. Since then lots of people have learned how to do that while the Jewish people try to make sure to look after their own now but not the people they trade with. Oh well

Dear Lord. In denying ignorance we must look to the facts. The word traitor has nothing to do with the Jews. The word’s origins are well documented and traced Middle English through Old French to Latin. Sorry to disappoint, but you should look it up from a reliable etymology source.

To the OP. The low oil prices are due to over-supply. No one wants to cut production due to the financial impact, so there’s a surplus. Basic economics. The counties being harmed are those who have high production costs and no economic diversification, or depth, like Russia. In maximising revenues in a time of over-supply, no one wants to be the first to cut production.

originally posted by: rickymouse

The name traitor originated from the trading practices of the Jews long time ago. They would sell out their own people if they sensed they could gain from it. Since then lots of people have learned how to do that while the Jewish people try to make sure to look after their own now but not the people they trade with. Oh well

I like how ATS is consistent. Never let facts get in the way of a good jew bashing.

traitor (n.) Look up traitor at Dictionary.com
c.1200, "one who betrays a trust or duty," from Old French traitor, traitre "traitor, villain, deceiver" (11c., Modern French traître), from Latin traditor "betrayer," literally "one who delivers," agent noun from stem of tradere "deliver, surrender" (see tradition). Originally usually with a suggestion of Judas Iscariot; especially of one false to his allegiance to a sovereign, government, or cause from late 15c.

www.etymonline.com...

originally posted by: noeltrotsky

originally posted by: SubSea
Why? My guess is that the oil companies know that high $$ oil enables alternative energy research and development. They also know that the lifetime of fossil fuel usage is drawing to an end due to ongoing research and development. So they plan to sell all they can while they can. As a side effect it will be a disaster to both OPEC and Russia.

Interesting. It is natural for established market players to lower prices to kill off competition. Could it be Oil Companies doing it...or Saudi Arabia doing it? I always thought US Oil was just trying to get in on the Gold Rush as another poster aptly mentioned. Could OPEC led by the Saudi's be trying to crush Alternative Energy? I didn't see Alt Energy as such a big threat to Oil right now to justify that move...but it could be.

Good point!

I'd list a few motives here for Saudis:
-killing US competition (shale oil is expensive)
-killing their local rivals ISIS/Iran
-hitting Russia for supporting Assad,

and one possible
-US might asked them for a favour, which last time worked against the Soviet Union... (this one is doubtful, because I suspect that the US wants it shale business more, than speeding up Russian collapse)