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Page added on September 21, 2015
Russian Government Readies for $30 Oil
Russia’s government has been discussing ways to tackle the tough economic environment if oil falls to as low as $30 per barrel next year, RBC daily reported on Monday, citing government sources.
That scenario was discussed at a government meeting chaired by Prime Minister Dmitry Medvedev earlier this month, the newspaper cited two unnamed government sources as saying.
The price of oil is crucial for the Russian budget, which normally generates half of its revenues from oil and gas sales. The Russian Economy Ministry forecasts that oil prices will average $52 per barrel in 2015 and $55 in 2016.
On Friday, a deputy energy minister said if crude falls below $40 a barrel from around $50 currently, Russian oil production may drop.
Oil prices rose by around one percent on Monday as U.S. drilling slowed and analysts estimated that $1.5 trillion worth of planned American production investment was uneconomical at prices of $50 per barrel or lower.
31 Comments on "Russian Government Readies for $30 Oil"
rockman on Mon, 21st Sep 2015 7:35 am
I imagine Russia will cope with such a “low” price of oil as it did when the inflation adjusted prices averaged about the same between 2000 and 2004. And will probably cope even better then when it fell to less then $13/bbl at the beginning of 1999.
Makati1 on Mon, 21st Sep 2015 7:52 am
Russia is in better shape to cope with $30 oil than most oil producing countries. Not that you will see that in any Western news sources. Their cost to produce is in the single digits, if my sources are correct. And that cost to produce is priced in rubles, not dollars so it is not affected by currency rates as much as say, Saudi Arabia.
Makati1 on Mon, 21st Sep 2015 8:27 am
This is why America should fail…
http://journal-neo.org/2015/09/21/the-us-grand-strategy-is-taking-a-u-turn/
“While analyzing the ongoing processes and events of today, one can get a strong impression that Washington “puppeteers” have decided to abandon the existing model of international relations to build a completely new one. The concept of globalization that has been pivotal for decades is now finally left aside, instead we are being presented with the concept of global instability, that should allow the US to preserve its domination in the world by destroying the stable political formations, which will ultimately become the breeding ground for numerous conflicts. In the meantime, Washington will be manipulating opposing regional parties in different parts of the world to make them confront each other.”
…and the sooner the better.
Davy on Mon, 21st Sep 2015 9:05 am
Too bad for the anti-Americans the U.S. Is proving that it has a good shot at being the last man standing in the final crash. They can’t stand the thought of it. I love it. There is no guarantee any will make it longer than others because there are too many potential tipping points. I just find it hilarious the agendists on this board are so obsessed with winning and losing when all will fail eventually.
Kenz300 on Mon, 21st Sep 2015 9:48 am
It is time to diversify away from fossil fuels and oil for transportation fuels.
Russia had its chance to diversify its economy the last 20 years……. Common sense……. don’t put all your eggs in one basket…
diversify…diversify…diversify..
Solar Surges in the Middle East and North Africa – Renewable Energy World
http://www.renewableenergyworld.com/articles/2015/09/solar-surges-in-the-middle-east-and-north-africa.html
BobInget on Mon, 21st Sep 2015 10:01 am
Game playing.
Russia, like Canada, sells oil in USD’s but pays for materials, labor, in rubles (or loonies) .
The dollar is nearing all time highs. (see article posted here RE dollar/oil connection)
Swiss interest rates are negative. Some banks charge to ‘store’ your funds. Why? Because Swiss currency is PM backed.
IMO oil at these prices is a better deal then gold
for future gain.
Just so ya know. In ‘cold war’ situations as we now find ourselves, don’t believe a third of what you read concerning the Russian economy or LT oil prices. Those words top be taken seriously;
“and” “the” “at”.
By all means read these RT releases. That’s how we determine direction.
The wold economies aren’t falling off cliffs. Demand, both domestically and internationally is rising. Remilitarization in the name of oil proves as much.
Boat on Mon, 21st Sep 2015 10:01 am
Kenz.
Go read the DOE website. Lots of interesting work going on including SunShot.
GregT on Mon, 21st Sep 2015 10:57 am
This report from the DOE website should be of particular interest:
http://www.netl.doe.gov/publications/others/pdf/oil_peaking_netl.pdf
BobInget on Mon, 21st Sep 2015 1:14 pm
GregT
re: your 2010 DOE link. Has anything changed in five years?
Just in the last few weeks, we see dramatic changes.
The Syrian power struggle just grew exponentially, BOTH Russian and US drones are actively hunting in the same neighborhoods.
BOTH Russian and US boots (made in China)
are, as pundits like to say, ‘on the ground’.
For the last five years I always ended my Syrian reports by asking a trite question,
“what could go wrong?”
Now we know.
Peak Oil has everything to do with wars in Sudan, Libya, Iraq, Yemen, Mali of course Syria.
Not to but too sad a face on it but “we” are getting our collective asses kicked.
JuanP on Mon, 21st Sep 2015 3:31 pm
The Russians will get by better and last longer than most. They have more water, food, and energy than they need for their survival. I only care about things you can drink, eat, or burn. And, please don’t give me no crap about Swiss cheese, BMWs, smartphones, Facebook, and Twitter.
GregT on Mon, 21st Sep 2015 3:50 pm
Russian debt per citizen – 1,713 USD
Russian debt as % of GDP – 11.6%
US debt per citizen – 56,737 USD
US debt as % of GDP – 104.38%
http://www.nationaldebtclocks.org
Davy on Mon, 21st Sep 2015 3:52 pm
Maybe Juan but Russia’s Asian territory will likely be Chinese down the road. Russian population is declining and China’s expanding. China has 13 times the population. Who knows maybe all of Russia will be under Chinese control.
Davy on Mon, 21st Sep 2015 3:53 pm
Meaningless Greg
JuanP on Mon, 21st Sep 2015 8:35 pm
Davy, I agree that the Russians are likely to face a significant amount of Chinese immigrants in the future when the Chinese economy collapses.
Makati1 on Mon, 21st Sep 2015 9:18 pm
GregT, no American wants to hear the truth. It’s too painful….lol.
Makati1 on Mon, 21st Sep 2015 9:36 pm
JuanP, yes, they will and they are already moving into Russia to build the new Silk Road. No problems there. A population density about that of Tennessee or New Hampshire is what would result if ALL of the Chinese spread out into Russia and Mongolia.
But that is not likely. Odds are, more millions of Chinese will be living all over the world in a few years as the new Silk Road progresses and they get established in new places. After all, the Chinese population of North America is growing fast. lol.
apneaman on Mon, 21st Sep 2015 9:50 pm
Mak, that’s just not true. Much of what I have learned about overshoot, collapse, American empire, etc I learned from American thinkers and authors from many walks of life. The vast majority maybe, but that goes for most countries. Is the average P all schooled up on overshoot? My take on America is that it has the largest portion of morons and true believer useful idiots. This was intentional – the dumbing down and heavy use of propaganda was part of the plan to wrestle control. This is a common feature in the late stage of empire. Other western countries are experiencing decline as well, but it is another example of follow the money. After the US there is GB another major finical center. Don’t be fooled by the sophisticated educated british accents on the BBC news and Doc’s – the country is full of their own version of dumb downed rednecks. Our overall education standards have fallen much less in Canada in the last 40 years compared to America, but we are stupider as a whole and no one here wants to hear it either. There is a significant number of Canadians that have Ukrainian ancestry and playing on those inherent tribal ancestral loyalties with the 21st century propaganda machine has been more than enough to get enough sheep on board supporting the DC meme. It was just routed through the Ottawa propaganda machine. Fuck we even have our own branch of the CATO institute here – the Fraser institute. There is a whole lotta reality right around the corner that most people the world over do not want to hear.
apneaman on Tue, 22nd Sep 2015 12:17 am
Russia is constructing a military base in Syria
http://thesaker.is/russia-is-constructing-a-military-base-in-syria/
Makati1 on Tue, 22nd Sep 2015 1:38 am
Ap, the powers in China know what is happening and they are moving their people out to their far flung acquisitions by the thousands. How many million will be dispersed along the new silk road as support and construction? How many millions will be allowed to emigrate to North America? How many are already in the Chinatowns all over the world? And, what is the real population of China? I’m sure no one has any idea of any of those numbers except as rough guesses. Not even the Chinese.
And, yes, denial is rampant in most developed countries. They know something is wrong and that it is getting worse. They fear the loss of their ability to live off of the rest of the world, nothing more. That demands that they never look in the mirror or behind the curtain least their fantasy will be blasted to bits.
The less developed, like the Ps, are still caught up in the Western propaganda for the most part, but they will weather the storm better then the developed world. They have less or noting to lose.
The Chinese may or may not migrate north as things progress. I suspect that that is part of Putin’s plans for the future. Population will be needed to open that region and the Chinese will be more than willing to fill the gap. There are not enough Russians to do it.
It is a fantastic circus with a predictable ending. I’m out of it as much as currently possible and working to get even more independent as days go by. Otherwise, I’m enjoying the show. Are you?
apneaman on Tue, 22nd Sep 2015 1:55 am
Yes I am. There has not been a show like this for about 65 million years. The apex predators were dinosaurs then not apes, but I bet it was one hell of a show when they went at each other over the dwindling resources. And of course they had a major environmental problems to deal with too and it wasn’t just from the asteroid.
New Dates Tie Volcanic Flood to Dinosaur Extinction
http://www.livescience.com/49097-lava-flows-led-dinosaur-extinction.html
So what did-in the dinosaurs? A murder mystery…
Scientists have assembled a slew of new forensic evidence – from high-resolution dates to microscopic fossils – to prosecute the dino-killer. Their indictment has worrying implications for us.
Everyone knows that the dinosaurs were wiped out – along with about 70% of all species – by a massive asteroid slamming into Mexico, right? Well, not so fast. Like a good murder-mystery, a steady drip of evidence and some major new revelations have implicated another suspect – were they in it together or is one innocent?
http://www.skepticalscience.com/So-what-did-
in-the-dinosaurs.html
Makati1 on Tue, 22nd Sep 2015 2:08 am
Ap, As usual, all we can do is piece together what we think happened and may be wide of the mark. I suspect that the comet/meteor was the match or the last straw in a changing climate. Perhaps the impact was what set off the volcanoes?
We will never be sure, but some of us know what is happening in this extinction event. I’m only glad that I will be here to witness it. Odds are, no one will be left to ever guess at how it all happened or why. With luck, I have another 15-20+ years and will likely see the grand finale. I am only sorry for my grand kids. We are leaving them a hell of a world to try to survive in.
Davy on Tue, 22nd Sep 2015 2:18 am
Folks there is a hilarious account above of someone who has agenda irregularities with two beloved brics. Funny story.
JuanP on Tue, 22nd Sep 2015 5:39 am
Ap “Our overall education standards have fallen much less in Canada in the last 40 years compared to America, but we are stupider as a whole and no one here wants to hear it either.”
I think this declining common sense, general education, and intelligence phenomenon is global. I was aware of this being so in Uruguay, too, by the time I was ten years old. That was one of the reasons I left my country looking for a less backward place. I could see that in spite of a better academic education, the people of my generation back home where considerably more stupid, incoherent, and irrational than the previous generations. Not that the previous generations where anything great, they were the two generations that destroyed what must have been a beautiful place to live in to begin with. I realized very early in life that my country’s situation was hopeless and deteriorating rapidly, and that my generation completely lacked the capacity to make things better. What I didn’t understand back then was that the problem was universal.
JuanP on Tue, 22nd Sep 2015 5:48 am
Mak “And, what is the real population of China? I’m sure no one has any idea of any of those numbers except as rough guesses. Not even the Chinese.”
You have no idea how right you are, Mak. I have been studying population issues all my life, nothing interests me more than the overpopulation problem and human beings’ incapacity to control their reproduction and breed in a sustainable way. One of the most mind numbing facts I’ve learned in my life is that the official margin of error in China’s latest census is a frigging unbelievable +-150 million, or a total of 300 million people. And that is just one country!
Davy on Tue, 22nd Sep 2015 6:55 am
Ap “Our overall education standards have fallen much less in Canada in the last 40 years compared to America, but we are stupider as a whole and no one here wants to hear it either.”
Canada is the size of a large US state I would say that is a poor comparison. The US is full of successes and failures.
Makati1 on Tue, 22nd Sep 2015 7:56 am
JuanP, even the fabulous US has no idea within a few million or so. The border flux keeps the numbers variable. There may only be 6 billion of us in the world or 8 billion. Numbers like population are a joke, along with most other ‘statistics’ these days. Government propaganda mostly.
Davy on Tue, 22nd Sep 2015 8:43 am
What we do know is the majority of humanity is in Asia so that means Asia will take a huge hit relative to other locations especially since it can’t feed itself without outside help now. Asia’s difficulty with food and water will only get worse along with a continued steady population rise. That is common sense and Ugly.
Boat on Tue, 22nd Sep 2015 8:52 am
Davy,
Around the 50’s China lost around 38 million due to famine. Their population was around 500,000. Now their population is around 1,300,000.
white Bwana on Tue, 22nd Sep 2015 12:47 pm
As Russia is not part of OPEC< I would be selling oil cheaper, the[r lower price would create more revenue and OPEC would either have to suffer or adjust the price accordingly. If OPEC adjusted the price then I would lower production output.
Russia could also sign contracts with individual countries to buy and sell oil at a cheaper price than OPEC. I am sure even a $1 a brl less than the Cartels price Russia would have no problems selling. OPEC is dead and just clinging to the past, the OPEC cartel needs to be dissolved and a free market established.
Makati1 on Tue, 22nd Sep 2015 10:48 pm
But, but, White Bwana, that would mean the end of the Petro dollar and the end of the American way of life. You know, plunder, wars and even more poverty at home. No more bullying the rest of the world and killing the peasants of foreign countries. They would have to use their Trillion Dollar Military to control the 320+ million Americans who would riot and burn like in the 60s. Shades of Jade Helm 15! LMAO
makati1 on Wed, 23rd Sep 2015 10:26 am
BTW: I don’t remember there ever being a truly “free” market. It has always been controlled by the corporate elite and banksters.