Winners and Losers

**tractor** · 6 January 2015, 11:07

...

Originally posted by EternalOptimist View Post

UK Oil industry close to collapse

Well that didn't take long. An oil glut in the USA followed by Obama allowing crude exports for the first time in decades, and now the effects are rippling through.
Bad news for Scotland and the oil industry in the UK, but good news for the UK as a whole.

One thing is clear, if we get moving on frakking, the same thing will happen to gas. The conventional gas industry will suffer but the UK will benefit

look to your investments now folks

I hate to reopen the wound but Salmond had a lot of faith in his future oil revenues ISTR? I wonder what the current situation would have done to his spreadsheet?

**barrydidit** · 6 January 2015, 11:11

Originally posted by tractor View Post

I wonder what the current situation would have done to his spreadsheet?

Originally posted by Salmonds 'Scotland economy' spreadsheet

#VALUE!

Probably.

**eek** · 6 January 2015, 11:12

Originally posted by tractor View Post

I hate to reopen the wound but Salmond had a lot of faith in his future oil revenues ISTR? I wonder what the current situation would have done to his spreadsheet?

It's a real shame they didn't vote Yes so we could watch it play out..

**original PM** · 6 January 2015, 11:16

As I understand it there is an increase in oil available on the market - which is driving prices down.

But this is all to do with embargoing Russia so that they cannot sell their oil at a competitive price (mainly because it costs more to extract from Siberia apparently).

So OPEC are allowing the price to drop to price the Russians out of the market.

But it is all manipulation!

So generally until Russia withdraw from the Ukraine oil prices will remain low.....

So do we want Russia to withdraw from the Ukraine?

**sal** · 6 January 2015, 11:19

Robin Allan, chairman of the independent explorers' association Brindex, says it is "almost impossible to make money" with the oil price below $US60 a barrel and there will be no new investments.

Meaning that the oil execs will have to downgrade from 200ft to 120ft yachts...

**VectraMan** · 6 January 2015, 11:21

Originally posted by eek View Post

It's a real shame they didn't vote Yes so we could watch it play out..

I always thought if they did vote Yes the whole thing would unravel within 6 months once reality hit home and it would never happen. Obviously I was wrong: the whole thing would have unravelled in 3 months.

**EternalOptimist** · 6 January 2015, 11:23

Originally posted by original PM View Post

As I understand it there is an increase in oil available on the market - which is driving prices down.

But this is all to do with embargoing Russia so that they cannot sell their oil at a competitive price (mainly because it costs more to extract from Siberia apparently).

So OPEC are allowing the price to drop to price the Russians out of the market.

But it is all manipulation!

So generally until Russia withdraw from the Ukraine oil prices will remain low.....

So do we want Russia to withdraw from the Ukraine?

OPECs refusal to support the oil price might be an indirect attack on Russia by the Saudis on behalf of the USA
It might also be an indirect attack on the US shale oil industry which is not exactly fledgling, but is in its technological infancy

who knows. I dont

**NickFitz** · 6 January 2015, 12:37

I'm no expert on the international oil markets, but I understood that the Saudi's have been flooding the market too, to the annoyance of the Americans. One theory is that the Saudis would benefit long-term from US oil companies going under due to a collapse in the oil price. The Americans can't do a lot about it because they need the Saudis on their side against Russia.

But this is all based on something I half-read after coming in from the pub around New Year, so maybe I misunderstood. (Mind you, this is General, so that shouldn't matter.)

**EternalOptimist** · 6 January 2015, 12:46

Originally posted by NickFitz View Post

I'm no expert on the international oil markets, but I understood that the Saudi's have been flooding the market too, to the annoyance of the Americans. One theory is that the Saudis would benefit long-term from US oil companies going under due to a collapse in the oil price. The Americans can't do a lot about it because they need the Saudis on their side against Russia.

But this is all based on something I half-read after coming in from the pub around New Year, so maybe I misunderstood. (Mind you, this is General, so that shouldn't matter.)

The USA and the Saudis are 'sort-of' on the same side, in the same camp. There may be a bit of jostling, but they are mostly singing from the same hymn sheet.

Saudis reluctance to support the oil price might be due to one of the conspiracy theories ^^
but it might equally be simply keeping their OPEC buddies in line, showing them who is boss

who knows ? I dont

Winners and Losers