OPEC to decrease oil production by 1 million barrels per day

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-- OPEC to decrease oil production by 1 million barrels per day

Posted by Magnetonium on Oct-19-2006 16:52:

OPEC to decrease oil production by 1 million barrels per day

In an attempt to prevent what happened to oil prices in 1985 AND 1997, OPEC will most likely decide to lower the oil production in their meeting today to make sure the oil prices do not continue dropping because these greedy fucks dont want to decrease their profits.

The article is on the Russian website, so there's little point in posting it, but I will anyway:

http://www.radiomayak.ru/plot.html?id=1783

Basically it states that OIL prices have went down about 20 percent from their peak a bit ago, and OPEC is worried this might affect their profits, and they have their meeting today.

What do you guys think about this shit?

Posted by metalgearsolid on Oct-19-2006 20:35:

You do know that the Saudis are making a profit anyways because it costs them $2dollars a barrel to make? But seeing as to how there are 30,000 members in the house of Saud. They need a lot of money to keep their lifestyle. Each one gets over $28,000 for doing nothing.

And if oil prices fell they would have to do other activities to make that type of money.

Anyways isn't this good for Russia too? Those SOB's are making a shitload of money and I don't expect them to bitch about oil price hikes.

Posted by star-traveller on Oct-19-2006 21:15:

Unfortunately in the resent time it doesn't make any good for Russia at all.

They gain the profit but all they do with this money is just saving them on the bank account. They cannot invest them anywhere, because it will bolster an inflation.

Currently they are working on a strategy to divide this funds into a separate categories and possible make money work.

But for now, it's just a ballast making Russian economy to be visible healthy.

Posted by Magnetonium on Oct-19-2006 21:36:

If I was looking at this situation through Russian eyes, I'd be like "THANK YOU OPEC!", but I am here in Canada (where we have lots of our own oil, yet the Canadian government prices it to us by global prices, those greedy fucks).

By most estimates, if oil prices will go down to their lows of 1998-99, Russian economy would crash (remember the black thursday?).

Posted by Shakka on Oct-20-2006 00:20:

quote:
Originally posted by Magnetonium

If I was looking at this situation through Russian eyes, I'd be like "THANK YOU OPEC!", but I am here in Canada (where we have lots of our own oil, yet the Canadian government prices it to us by global prices, those greedy fucks).

It's not economically advantageous to extract the oil from the tar sands in Alberta when oil is below a certain price threshold (I think the magic number is somewhere between $40-60/bbl right now). That's just business, not so much a greedy government (and it's not very popular politically to subsidize energy companies for obvious reasons). Sucks, but that's just how it works. Also, the oil in the tar sands is predominately heavy-sour crude which is more difficult and costly to refine. I think that going forward you'll start to see more development up there though. Hopefully for the benefit of everyone, but I guess only time will tell.

Posted by Magnetonium on Oct-20-2006 00:44:

quote:
Originally posted by Shakka
It's not economically advantageous to extract the oil from the tar sands in Alberta when oil is below a certain price threshold (I think the magic number is somewhere between $40-60/bbl right now). That's just business, not so much a greedy government (and it's not very popular politically to subsidize energy companies for obvious reasons). Sucks, but that's just how it works. Also, the oil in the tar sands is predominately heavy-sour crude which is more difficult and costly to refine. I think that going forward you'll start to see more development up there though. Hopefully for the benefit of everyone, but I guess only time will tell.

Yes, I've read about the Alberta oil sands ;-) if technology will be developed to economically refine it to oil with least possible costs close to the Middle East oil, Canada will have the world's largest oil supplies ;-)

Posted by Krypton on Oct-20-2006 01:07:

With members like Venezuela, Iran, and Saudi Arabia, it doesn't surprise me. Guess what this means...

The 12,011.73 that the DOW Jones' got, won't last for long. In the meantime, i'm going to continue investing in ethanol, and alternative fuels.

That's my "FUCK YOU" to OPEC