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Oil price: Brent crude hits 11-year low

bbc.co.uk

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Re: Oil price: Brent crude hits 11-year low

#41

Post by ambicapter »

norea-armozel wrote: post #28
simonh wrote: post #25

Earlier quoted context omitted.

What are they going to do? Reduce production? They'd have to slash it to the bone to materially affect oil prices right now and the benefits of any rise would be realized by the other producers. Their reduced sales would offset any price rise. OPEC just doesn't control enough production capacity to dictate to the market any more. All the producers have become so dependent on oil revenue their response to falling pric…

Do you think this is part of a larger plan to get as much cash before they switch over to some other industry? I know they've been working on solar and other renewables, but are they investing in any firms outside of Saudi Arabia in that regard? I mean building a few solar plants is not much compared to say owning a specific share of a solar panel producer or its equivalent.

How are they going to 'switch over to some other industry'? They can't just turn on the scientist brigade the way you turn on an oil well.

Re: Oil price: Brent crude hits 11-year low

#42

Post by AnimalMuppet »

codeshaman wrote: post #8
pmoriarty wrote: post #2

Where are the peak oil prophets?

Actually, this is partly the fruits of their work. It seems like we're experiencing peak oil demand, rather than peak supply. I'm not sure if the "peak oil prophets" considered this possibility - that their warnings will actually be heard, measures will be taken and we will avoid running out of oil. Now that we're here, is peak demand less scary than peak supply ?

> Now that we're here, is peak demand less scary than peak supply ?

Yes, much, because the world's economies don't grind to a halt. They become more efficient and keep running. That's a much better outcome.

Re: Oil price: Brent crude hits 11-year low

#43

Post by dragontamer »

mikeash wrote: post #37
jeromeflipo wrote: post #6

"The Stone Age didn't end for lack of stone, and the oil age will end long before the world runs out of oil." - Sheikh Zaki Yamani

That's such a bad comparison. Stone is way more common and was being used by far fewer people. I sincerely hope it's true, but it's one of those snide comments that attempts to make legitimate concerns look stupid.

> Stone is way more common

Stone is literally more expensive than oil. Note that at $2.00 / gallon, gasoline (refined oil) is twice as cheap as bottled water. At $35 / barrel (ie: $35 per 55-gallon drum), crude oil is literally cheaper than a huge number of commodities.

Crude Oil is roughly $0.65 per gallon. Definitely cheaper than stone by every measurement.

Re: Oil price: Brent crude hits 11-year low

#44

Post by gotchange »

dragontamer wrote: post #39
gotchange wrote: post #38

Earlier quoted context omitted.

> but I don't think we'll ever see $100+ per barrel oil again. It would just take a small scale war in the Persian Gulf (KSA vs Iran) for the crude oil barrel to pierce through the $100 dollar level and soar even further. Never say never.

Note that Iranian Oil Sanctions have only been recently lifted. The current oil prices is WITHOUT Iran in the market. Come next year, Iranian Oil will join the world market and drive prices lower.

The more, the merrier

If this is going to bankrupt the Wahabi and terrorism sponsoring House of Saud, I'm all for it

Re: Oil price: Brent crude hits 11-year low

#45

Post by narrowrail »

dragontamer wrote: post #43
mikeash wrote: post #37

Earlier quoted context omitted.

That's such a bad comparison. Stone is way more common and was being used by far fewer people. I sincerely hope it's true, but it's one of those snide comments that attempts to make legitimate concerns look stupid.

> Stone is way more common Stone is literally more expensive than oil. Note that at $2.00 / gallon, gasoline (refined oil) is twice as cheap as bottled water. At $35 / barrel (ie: $35 per 55-gallon drum), crude oil is literally cheaper than a huge number of commodities. Crude Oil is roughly $0.65 per gallon. Definitely cheaper than stone by every measurement.

Not to step on the general point you are making, but a barrel of oil is 42 gallons[0], so $0.83/gal. Also, I get spring water from a ~local spring for $0.85/gal.

[0]https://en.wikipedia.org/wiki/Barrel_%28unit%29#Oil_barrel

Re: Oil price: Brent crude hits 11-year low

#46

Post by unabridged »

at-fates-hands wrote: post #32
unabridged wrote: post #30

Earlier quoted context omitted.

I used to think this also, that they would eventually turn down production and raise prices. But now I believe the Saudis are in a race to cash out everything they can before either their regime is toppled or battery technology makes oil less desirable.

>> I believe the Saudis are in a race to cash out everything they can before either their regime is toppled or battery technology makes oil less desirable. They've been talking about the regime imploding for practically 30 years now. Robert Baer predicted the collapse of the regime over a decade ago: http://www.theatlantic.com/magazine/archive/2003/05/the-fall...

>They've been talking about the regime imploding for practically 30 years now.

With what's happened in Northern Africa in the last few years and real elections next door in Iraq (and probably Syria within the next couple years) the Saudi people have to be on the brink. Saudi Arabia already has a defense budget the size of Russia's just to keep the country peaceful.

Re: Oil price: Brent crude hits 11-year low

#47

Post by mikeash »

dragontamer wrote: post #43
mikeash wrote: post #37

Earlier quoted context omitted.

That's such a bad comparison. Stone is way more common and was being used by far fewer people. I sincerely hope it's true, but it's one of those snide comments that attempts to make legitimate concerns look stupid.

> Stone is way more common Stone is literally more expensive than oil. Note that at $2.00 / gallon, gasoline (refined oil) is twice as cheap as bottled water. At $35 / barrel (ie: $35 per 55-gallon drum), crude oil is literally cheaper than a huge number of commodities. Crude Oil is roughly $0.65 per gallon. Definitely cheaper than stone by every measurement.

Stones can be found just lying around on the ground all over the world. I don't care how cheap oil is, it's not cheaper than "you can bend down and pick some up."

Cheaper than bottled water? No it's not. You can find some bottled water that's more expensive, sure, but you can find bottled water that's cheaper too. I'm sure you can find some oil somewhere that's more expensive than good champagne, too.

Bottled water is a terrible comparison anyway, because most of what you're paying for is the "bottled." Oil is not cheaper than water in most places. Can you imagine paying 65 cents/gallon for your shower?

Re: Oil price: Brent crude hits 11-year low

#48

Post by lorenzhs »

narrowrail wrote: post #45
dragontamer wrote: post #43

Earlier quoted context omitted.

> Stone is way more common Stone is literally more expensive than oil. Note that at $2.00 / gallon, gasoline (refined oil) is twice as cheap as bottled water. At $35 / barrel (ie: $35 per 55-gallon drum), crude oil is literally cheaper than a huge number of commodities. Crude Oil is roughly $0.65 per gallon. Definitely cheaper than stone by every measurement.

Not to step on the general point you are making, but a barrel of oil is 42 gallons[0], so $0.83/gal. Also, I get spring water from a ~local spring for $0.85/gal. [0] https://en.wikipedia.org/wiki/Barrel_%28unit%29#Oil_barrel

The barrel is not included in the price, though, whereas it's included in the price of bottled water. The better comparison is tap water, which I get for $0.0089/gal.

Re: Oil price: Brent crude hits 11-year low

#49

Post by norea-armozel »

ambicapter wrote: post #41
norea-armozel wrote: post #28

Earlier quoted context omitted.

Do you think this is part of a larger plan to get as much cash before they switch over to some other industry? I know they've been working on solar and other renewables, but are they investing in any firms outside of Saudi Arabia in that regard? I mean building a few solar plants is not much compared to say owning a specific share of a solar panel producer or its equivalent.

How are they going to 'switch over to some other industry'? They can't just turn on the scientist brigade the way you turn on an oil well.

That's why I'm asking. Are they planning ahead or just playing financial chicken?

Re: Oil price: Brent crude hits 11-year low

#50

Post by dingaling »

mikeash wrote: post #47
dragontamer wrote: post #43

Earlier quoted context omitted.

> Stone is way more common Stone is literally more expensive than oil. Note that at $2.00 / gallon, gasoline (refined oil) is twice as cheap as bottled water. At $35 / barrel (ie: $35 per 55-gallon drum), crude oil is literally cheaper than a huge number of commodities. Crude Oil is roughly $0.65 per gallon. Definitely cheaper than stone by every measurement.

Stones can be found just lying around on the ground all over the world. I don't care how cheap oil is, it's not cheaper than "you can bend down and pick some up." Cheaper than bottled water? No it's not. You can find some bottled water that's more expensive, sure, but you can find bottled water that's cheaper too. I'm sure you can find some oil somewhere that's more expensive than good champagne, too. Bottled water i…

The stones you can pick-up from the ground aren't much use in construction other than for rubble-fill, which requires quantities vastly greater than available in free [position] material.

To gather them in kilotonnes you'll need to remove and sift the regolith layer. A lot more expensive than 'pick some up'.

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