SAUDI OIL MINISTER: I Don't Care If Prices Crash To $20 — We're Not Budging
120 replies, posted
Ever since fuel prices have dropped this is basically how I feel every time I go to the gas station
[img]https://38.media.tumblr.com/tumblr_lpyoo2rv5a1qis8jbo1_400.gif[/img]
From an environmental standpoint, it is important to remember that oil is a finite resource. With the Jevons paradox in mind, low prices = high consumption. I feel bad for the next few generations.
[QUOTE=~Kiwi~v2;46782320]$2.27 a liter
Fucking christ help.[/QUOTE]
Where the hell do you live man?
petrol's at $1.16AUD a Litre in Melbourne.
[QUOTE=aydin690;46782498]That'd be saudi arabia. Oil proceeds only represent about 20 percent of iran's GDP.[/QUOTE]
"Only"
I don't know about you, but in economics 20% of your gdp being composed of oil is entirely a bad thing. (It's still a massive proportion of your economy based on a single commodity).
Where is Irans diversified economy? What's causing the massive brain drain? Why is so much money being spent on the military there? Why is most of the economy centrally planned and/or managed by religious organizations? What about the high inflation and unemployment?
Sanctions only tend to be really powerful when other problems already exist in a countries economy.
Iran is badly governed.
1.117 euros per liter / 1.077 if you got a discount.
Oh my god yeah!
Only $3.00 a gallon here!, oh no wait that's $3.00 taxes for every gallon, the actual price is like 7-8USD a gallon.
Thanks Dutch government
Enjoy your cheap gas guys, while we soon will struggle to make ends meet because of irresponsible government.
[QUOTE=Deng;46784457]"Only"
I don't know about you, but in economics 20% of your gdp being composed of oil is entirely a bad thing. (It's still a massive proportion of your economy based on a single commodity).
Where is Irans diversified economy? What's causing the massive brain drain? Why is so much money being spent on the military there? Why is most of the economy centrally planned and/or managed by religious organizations? What about the high inflation and unemployment?
Sanctions only tend to be really powerful when other problems already exist in a countries economy.
Iran is badly governed.[/QUOTE]
Oil and gas make up 22% of Norway's GDP and 67% of their exports, is it a bad thing? It really depends on what the country does with it, if it's as competent as Norway, it's not a big problem.
Gas is back below $1/L now, the problem is our dollar is only worth $0.86USD, so while gas may fall, damn near everything else will rise.
[QUOTE=Firewarrior;46784722]Oil and gas make up 22% of Norway's GDP and 67% of their exports, is it a bad thing? It really depends on what the country does with it, if it's as competent as Norway, it's not a big problem.[/QUOTE]
To a degree even Norway suffers from oil:
[URL]http://www.reuters.com/article/2014/05/08/us-norway-economy-insight-idUSBREA4703Z20140508[/URL]
[URL]http://www.economist.com/news/special-report/21570842-oil-makes-norway-different-rest-region-only-up-point-rich[/URL]
Also because of such reliance on oil, it means that a drop in prices will have an impact on Norway. If the oil industry collapsed tomorrow, that's 67% of your exports gone and 22% of your GDP ruined.
Prices are higher (especially property), too many educated people are sucked up into the oil industry, the welfare system is bloated, public sector employment is perhaps unhealthfully large.
Of course Norway also had the foresight to use its oil money well. Countries like Iran and Venezuela regularly misuse government revenues on pointless shit.
I can fill up for $35. That means $35 is enough to take me just shy of 450 miles if I stick to the interstate and I ignore the fuel light
[QUOTE=JohnFisher89;46782391]So does this mean bad times for north western europe and russia?[/QUOTE]
North Western Europe? No, not really. Sure, Denmark is producing oil, but we're far from dependent on it. Our production is dropping as well, so we're becoming less and less dependent on that revenue, and even then I think it's only like 1/60 of our national budget. Sweden produces less oil than Denmark iirc, and Norway couldn't give a shit about money if it tried - I'm pretty sure most of their oil money is going towards funds, and not their actual budget anyway.
Still, I'd like the price to go up to at least the same level as before, because this is honestly like peeing in your pants for warmth. Sure, it feels good for a while, but this does nothing to alleviate our dependence on oil - it's pretty much the opposite.
It seems like the only thing that could get Americans to buy smaller cars would be higher gas prices, really.
Edit:
That's not to say that Scandinavian countries wouldn't suffer from this, but I don't think the effect will be big.
[QUOTE=Sleepy Head;46784241]From an environmental standpoint, it is important to remember that oil is a finite resource. With the Jevons paradox in mind, low prices = high consumption. I feel bad for the next few generations.[/QUOTE]
Pff, my grandchildren can suck my cheap-running, fat exhaust-pipe when I can get gas for 9.40kr per liter.
[sp]Which is still hellaspensive compared to American gas prices, even pre-gas-crash[/sp]
[QUOTE=ghghop;46782269]One of our pumps is at $1.93[/QUOTE]
That's ridiculous. Here, a US gallon is $6.65. That's still the cheapest we've had for a long time, at ~£1.13/L (1L is about 0.25 gal)
Primary target of this is crushing the US fracking boom
1.82$ per gallon at my local costco
I'm crying tears of joy right now
I never thought I'd see gas this low for a LONG time
[QUOTE=TripleR309;46783628]I do like this move, but I am curious as to what caused this sudden change of heart? What do they get out of it?[/QUOTE]
They know electric cars will take over and are selling all the oil they can as long as its worth something.
I never thought I'd see it for less than $2 ever, was $1.93 last I checked 3 days go. Almost wonder if I should get a big ole tank and stockpile.
Wow u greedy shits. $8 a gallon in uk.
[QUOTE=redBadger;46782159]Gas was $2.37 today. Filled a near empty tank for only $30 and had .50 cents of change because the tank almost overflowed on me.[/QUOTE]
Gas is $1.90 in my area.
[QUOTE=Sleepy Head;46784241]From an environmental standpoint, it is important to remember that oil is a finite resource. With the Jevons paradox in mind, low prices = high consumption. I feel bad for the next few generations.[/QUOTE]
Its important to note that the US already consumes an incredible amount of oil. And we don't (usually) do it out of frivolous pleasure, its out of necessity. While driving huge vehicles doesn't help, its only part of the problem.
Our entire transportation infrastructure needs an overhaul. We are just too car dependent. The fact that you need to own a car in most places is a problem in of itself. Public transport needs a boost. And that's something we can do now.
Stations on the highways around here are sometimes $1.99. The one closest to me was $2.38 last night. I'll report back later to see what they are today. I'm loving these prices. $10 gets me half a tank from damn near empty.
[QUOTE=Korro Bravin;46785773]I never thought I'd see it for less than $2 ever, was $1.93 last I checked 3 days go. Almost wonder if I should get a big ole tank and stockpile.[/QUOTE]
This is not a good idea. Even treated with chemical additives (commonly known as stabilizers) gas severely degrades over time. It's why crude is shipped long distances and refined into gas locally.
Cost me £55 to fill up yesterday :(
[QUOTE=joe588;46785814]Wow u greedy shits. $8 a gallon in uk.[/QUOTE]
Is that less than usual though? Also you still get Vanilla Coke so I think we're even.
[QUOTE=Kefirman;46784711]Enjoy your cheap gas guys, while we soon will struggle to make ends meet because of irresponsible government.[/QUOTE]
thanks for repeatedly voting a psycho into power who forced the hand on himself.
[QUOTE=LordCrypto;46782413]short answer: OPEC wants to control all oil
in their mind the easiest way to do that is to basically ride the prices down until north american producers aren't willing to produce for that price[/QUOTE]
Back in the day, whenever they'd try that, the US would open up an extra well or two and balance things out, forcing the situation back to normality. It seems this time, they've brought the price so far down, that even that isn't working.
[editline]25th December 2014[/editline]
[QUOTE=H8Entitlement;46786540]This is not a good idea. Even treated with chemical additives (commonly known as stabilizers) gas severely degrades over time. It's why crude is shipped long distances and refined into gas locally.[/QUOTE]
You could, though, stockpile on diesel, which has a much, much longer shelf life.
Anecdote:
Me and a mate of mine once found a barrel of diesel from 1975 - we let it settle, got rid of the water (it's heavier than diesel) and the used it to fuel our farm tractor - no problems what-so-ever.
My parents thinks this is a bad thing because "muh environment"
[QUOTE=Fatfatfatty;46789018]My parents thinks this is a bad thing because "muh environment"[/QUOTE]
It likely is though; not just because it disincentives exploration into alternatives to oil, but also because prices will likely go back up (perhaps even higher) once all of the competition has been crushed.
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