Bill,
As i said in my first post, it may be possible that either a new alternative energy source would have invented or in the pipe line. It is also possible that new ways to decrease the cost of production of greener energy sources would be around the corner.
US oil market and industry are huge. Contrary to general perception, three biggest produces ot the oil, Russia, Saudi Arabia, and US are almost at the same level now. Each of them produces around 13% of the total would production. And, regarding the consumption, US alone consumes 20% of the world consumption. China is at the second position by a huge margin.
Even being there in the top three producers, because of its huge consumption, US is still a net importer of oil. All oil produced in US consumed by US itself. Thus, US market still has the appetite to stomach any new energy source.
But, on the other hand, US government would never allow to die down its domestic oil industry at once. Even if there is any such need, it would be done slowly and in a phased manner, otherwise it may affect the US economy adversely in a huge way, besides the whole of world economy, which is already not in a good shape.
Given that the most governments now are being influenced by the MNC's nowdays in one form or other, no country can overlook their interest, Including US. I am sure that if any breakthrough is coming, MNC's would have been informed about that already.
There exists an elite class in the present world order, which is constituted of top political and business brass. It is only that cartel that decides what is to be done and what is not to be done. Rest is all window dressing.
Remember that what we know today, is known to them at least 1-2 years in advance, excluding some completely unforeseen circumstances.
with love,
sanjay
The REAL Reason Oil Prices Are at Historic Lows -
Re: The REAL Reason Oil Prices Are at Historic Lows -
Bill,
As i said in my first post, it may be possible that either a new alternative energy source would have invented or in the pipe line. It is also possible that new ways to decrease the cost of production of greener energy sources would be around the corner.
US oil market and industry are huge. Contrary to general perception, three biggest produces ot the oil, Russia, Saudi Arabia, and US are almost at the same level now. Each of them produces around 13% of the total would production. And, regarding the consumption, US alone consumes 20% of the world consumption. China is at the second position by a huge margin.
Even being there in the top three producers, because of its huge consumption, US is still a net importer of oil. All oil produced in US consumed by US itself. Thus, US market still has the appetite to stomach any new energy source.
But, on the other hand, US government would never allow to die down its domestic oil industry at once. Even if there is any such need, it would be done slowly and in a phased manner, otherwise it may affect the US economy adversely in a huge way, besides the whole of world economy, which is already not in a good shape.
Given that the most governments now are being influenced by the MNC's nowdays in one form or other, no country can overlook their interest, Including US. I am sure that if any breakthrough is coming, MNC's would have been informed about that already.
There exists an elite class in the present world order, which is constituted of top political and business brass. It is only that cartel that decides what is to be done and what is not to be done. Rest is all window dressing.
Remember that what we know today, is known to them at least 1-2 years in advance, excluding some completely unforeseen circumstances.
with love,
sanjay
As i said in my first post, it may be possible that either a new alternative energy source would have invented or in the pipe line. It is also possible that new ways to decrease the cost of production of greener energy sources would be around the corner.
US oil market and industry are huge. Contrary to general perception, three biggest produces ot the oil, Russia, Saudi Arabia, and US are almost at the same level now. Each of them produces around 13% of the total would production. And, regarding the consumption, US alone consumes 20% of the world consumption. China is at the second position by a huge margin.
Even being there in the top three producers, because of its huge consumption, US is still a net importer of oil. All oil produced in US consumed by US itself. Thus, US market still has the appetite to stomach any new energy source.
But, on the other hand, US government would never allow to die down its domestic oil industry at once. Even if there is any such need, it would be done slowly and in a phased manner, otherwise it may affect the US economy adversely in a huge way, besides the whole of world economy, which is already not in a good shape.
Given that the most governments now are being influenced by the MNC's nowdays in one form or other, no country can overlook their interest, Including US. I am sure that if any breakthrough is coming, MNC's would have been informed about that already.
There exists an elite class in the present world order, which is constituted of top political and business brass. It is only that cartel that decides what is to be done and what is not to be done. Rest is all window dressing.
Remember that what we know today, is known to them at least 1-2 years in advance, excluding some completely unforeseen circumstances.
with love,
sanjay
Re: The REAL Reason Oil Prices Are at Historic Lows -
It's about politics, not profit.
The left was manhandling politics throughout the Western world before oil prices sunk.
Therefore, the right oiled the wheels because it knew when people see the free market working, they vote for the free market.
Since then, the right has taken over every single legislature in the Western world. There is literally not a single left-wing majority in Europe*, the U.S., Canada, or Australia.
*Some countries in Europe have left-wing legislative majorities, but the European Parliament is mostly right-wing.
The left was manhandling politics throughout the Western world before oil prices sunk.
Therefore, the right oiled the wheels because it knew when people see the free market working, they vote for the free market.
Since then, the right has taken over every single legislature in the Western world. There is literally not a single left-wing majority in Europe*, the U.S., Canada, or Australia.
*Some countries in Europe have left-wing legislative majorities, but the European Parliament is mostly right-wing.
Re: The REAL Reason Oil Prices Are at Historic Lows -
Indeed well said, that would definitely of happened under Hitler, although if I may make a point, to the honourable gentleman, I would disagree with the sentiment of all right wing in Europe being as mostly the left wing has had some commons sense to make social policies key, even in America. And will provide examples if needed for Europe.
His story is interesting but it's all just a little bit of history repeating...
His story is interesting but it's all just a little bit of history repeating...
Re: The REAL Reason Oil Prices Are at Historic Lows -
As i predicted in my post December last year, the oil has been stablized around 50 $, give and take few $ on both sides. It has been there for three months now. Both parties would have been watching closely.
No future cut in production is expected soon. On the contrary, there is some news that Russia is planning to increase its oil production to offset its losses due to falling price of its currency and some trade restriction imposed by western countries.
Besides open oil market, Russia has one more route to sell its oil. it has some kind of bartel arrangement with some countries (like India), according to which it can exchange oil in lieu of other goods. If that happens, it will be positive for both countries because that will keep US $ out of the equation. As a result, the currencies of both countries would rise against US $ and that will give more purchasing power to both.
But, that will again push the rate of oil further down in the international market. This factor would be played out in next few months.
with love,
sanjay
No future cut in production is expected soon. On the contrary, there is some news that Russia is planning to increase its oil production to offset its losses due to falling price of its currency and some trade restriction imposed by western countries.
Besides open oil market, Russia has one more route to sell its oil. it has some kind of bartel arrangement with some countries (like India), according to which it can exchange oil in lieu of other goods. If that happens, it will be positive for both countries because that will keep US $ out of the equation. As a result, the currencies of both countries would rise against US $ and that will give more purchasing power to both.
But, that will again push the rate of oil further down in the international market. This factor would be played out in next few months.
with love,
sanjay
-
Bill Wiltrack
- Posts: 5456
- Joined: Sat Nov 03, 2007 1:52 pm
- Location: Cleveland, Ohio, USA
- Contact:
Re: The REAL Reason Oil Prices Are at Historic Lows -
.
Thank you Sanjay.
Good post.
Please stay with this thread.
.
Thank you Sanjay.
Good post.
Please stay with this thread.
.