Emerging Consequences for declining Oil Prices.

[Stargate]

I think earlier when the oil prices began to go down I mentioned that although it is good short term, it might not be so good long term and could turn out to be very dangerous. As we are now seeing production world wide is beging to feel the heat, especially the lower end of the oil companies. The world economies have not realistically recovered, they have mearly recovered some of the lost revenue s that was lost in 2007-2008 by way of the savings from the lower oil prices. If you look at the productive sector, it did not recover enough to raise wages, and people were enjoying the extra money they received from the savings from the low gas prices. Some people have spent the savings believing the economy was reviving which shows a short sightedness or a misunderstanding of the economic s of the day.

I personally do not think terrorism is what we need to be afraid of in the future but the world economy. Again we are led down a path dictated by the banks and cooperations that the masses believe what they are told and brings the Hageian principles again into focus. The Russian economic decline is in the end counter productive, especially for Europe and it is only a matter of time until we begin to see the fall out.

These are just my views, I would love to hear the views of others.

[Lenzabi]

Yeah, as America just became No-1 in Oil and fossil fuel production (Fracking, and tar sands), we see initially savings that seem great, but are a false thing as the world economy is dictated by the Corporate Monopolies

[Rockhopper]

The price of fuel is built into everything we buy from food to consumables.

There is a time lag from when it drops to when the effects filter through.

I agree Star that terrorism is not the bogey for us today or into the future. Instability is. As those countries which rely on oil for income struggle then the people become restive.

Tim.

[Kaere]

Here in Alberta, Suncor has terminated 1,000 jobs as a result. Also, Alberta itself (which counts royalties from oil production as part of it's revenue) is now looking at an exciting new budget deficit ranked into the billions.

[Rockhopper]

Venezuela is hurting too Ka. So is Russia. 

I see that many of the small wells are shutting down in the US too, uneconomic to pump them.

Tim.

[Stargate]

I think the decline of the rubel is having a significant impact on the new BRICS countries, I am not sure of the acronym. As you can imagine Russia is the most predominent member and the only oil and gas producer. I think there is an effort to bring the coalition down and that is why the crisis in the Ukraine was created. There is a desparate attempt from the EU to protect the export market in light of the economical accelaration of the BRICS coalition and the declining US dollar. Slowing down Russia will automatically slow down the others, however there is a price to pay long term, because oil prices cannot stay down forever, and Europe cannot ignor Russia forever. As I said before, there is great trouble ahead and we the masses are to believe there is a terrorist threat and we should fear Moslems. The truth is terrorism does not have the potential to disrupt nations as much as economical turmoil. Yes we have some finatics and people beheading people trying to draw attention to their cause, but that alone is not enough to cause global economic decline. If we pay attention to what is really happening we can see the US as Tim pointed out is the largest oil producers at the moment. This was not supposed to happen intil the gulf oil ran low. There will be masive layoffs no matter if oil prices continue to go up or down. Just my observayions I could be wrong.

[Lenzabi]

Of course I wonder if these will be addressed Tuesday on the State of the Union address. The Prez seems optimistic as far as I have seen so far.

[Stargate]

Yes Len, I notice he has become a little bolder, but I don't think bold enough to tell us the whole truth, we will see. Let's give him the benefit of the dought.

[Rockhopper]

The Frackists are feeling the pinch too. Fracking is only profitable when the oil price is high. The gas companies are looking at places like Finger Lake, New York State to store the excess gas to try to hold the prices up but the locals are not impressed!

Tim.

[Agartha]

But couldn't Russia, Venezuela and Iran cut their production if the low prices are affecting them?

[Rockhopper]

Russia and the others require high oil prices for an income Ags. Their economies rely on oil prices. So cutting production wouldn't help.

Tim.

[Lenzabi]

It is all price fixing when and where they feel they can get away with it.

[Stargate]

There is not much unity out there AGS, everyone is looking out for self. As Tim said they have to sell more at this point not less. Someone is dictating the oil market, not hard to guess who.

[Rogue]

Petrol prices drop below $1.00 litre here tomorrow. First time since 2009.

[Stargate]

Petrol prices drop below $1.00 litre here tomorrow. First time since 2009.

It's hard to start Rogue, and even harder to stop. There is always a price to pay.

[Mordae]

Agreed.

Most of the bigger oil companies will get through it OK, as they expanded into refining some time back (cheap source product). It's the smaller independent (if such a thing exist's) operators that'll be driven out of business...and possibly a couple of banks that financed them.

[Stargate]

Agreed.

Most of the bigger oil companies will get through it OK, as they expanded into refining some time back (cheap source product).  It's the smaller independent (if such a thing exist's) operators that'll be driven out of business...and possibly a couple of banks that financed them.

That's how I read it Mord.

[Lenzabi]

think of the carbon emissions now, cheap gas for Americans means more car travel, less Public Transit , so more cars will be out and about than before.

[Stargate]

think of the carbon emissions now, cheap gas for Americans means more car travel, less Public Transit , so more cars will be out and about than before.

Len, the more I follow the trend of low oil prices, the more I am realizing that if something does not change we are stairing another war in the near future. I cannot see the BRICS nations waiting for their countries to collapse before they retaliate. Russia, China, Iran, India, are being challenged as never before. It is getting to a point that reversing this trend is unrealistic. As I mentioned it does not matter anymore if the oil prices goes up or down. I do not want to sound as if we should give up, but things does not look as if it can change course, at leat not so easy. Maybe the time has come for us to be more specific about what we are going yo do for survival?

[Lenzabi]

think of the carbon emissions now, cheap gas for Americans means more car travel, less Public Transit , so more cars will be out and about than before.

Len, the more I follow the trend of low oil prices, the more I am realizing that if something does not change we are stairing another war in the near future. I cannot see the BRICS nations waiting for their countries to collapse before they retaliate. Russia, China, Iran, India, are being challenged as never before. It is getting to a point that reversing this trend is unrealistic. As I mentioned it does not matter anymore if the oil prices goes up or down. I do not want to sound as if we should give up, but things does not look as if it can change course, at leat not so easy. Maybe the time has come for us to be more specific about what we are going yo do for survival?

I expect that it will get uncomfortable on Planet Earth, I also think this shell will be kaput in that oh 10yr period, after that, the world if no reversal is gonna be Phooked after that.

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