Good news for Russia. Russia oil production hits post USSR record high amid sky high $ to ruble rate

[terranMarine]

I immigrated with my parents. Manchu are Han. There is no more Manchu.

What do you mean no more Manchu? lol

 

[Superboy]

What do you mean no more Manchu? lol

Manchus are Han these days.

 

[A.M.]

The higher the supply, the lower the price

 

[Superboy]

The higher the supply, the lower the price

The worse for US oil producers since they earn in dollars. Russian oil producers do not earn in dollars. They earn in rubles, so you have to multiply $ amount by $ to ruble exchange rate, and that thing grows when $ oil price falls. So, Russia increases oil supply to hurt US shale producers. Russia earns more. The US loses money.

 

[A.M.]

The worse for US oil producers since they earn in dollars. Russian oil producers do not earn in dollars. They earn in rubles, so you have to multiply $ amount by $ to ruble exchange rate, and that thing grows when $ oil price falls. So, Russia increases oil supply to hurt US shale producers. Russia earns more. The US loses money.

Normally i would agree but US and Saudis are in cohorts here. They'll make it work. Russians and Iranians are the ones who will suffer.

 

[Superboy]

Normally i would agree but US and Saudis are in cohorts here. They'll make it work. Russians and Iranians are the ones who will suffer.

Russia and Saudi Arabia try to kill US shale, but they won't succeed because shale oil is like thousands of times as much as conventional oil.

 

[C130]

Manchus are Han these days.

Manchu still exist
Manchu people - Wikipedia, the free encyclopedia
Manchu are pawns of the Han I believe. they use to do the dirty work for them.

Russia and Saudi Arabia try to kill US shale, but they won't succeed because shale oil is like thousands of times as much as conventional oil.

you can't kill Shale you can only delay the inevitable.
conventional oil is running out now it's unconventional oil that will matter

most oil shale in the U.S is still profitable in the $50 range, if it does continue to drop they'll have to shut down the operation, but who really thinks oil is going to stay below >$100 for good???

countries like Saudi Arabia,Iran,Russia,Nigeria,Venezuela, and Canada can't survive which such low prices.

the oil market will correct it's self no matter or these countries are in serious trouble.

 

[Superboy]

you can't kill Shale you can only delay the inevitable.
conventional oil is running out now it's unconventional oil that will matter

Pffft, you think humans can impact nature? Not a chance. Humans haven't even used up 0.0000001% of conventional oil. Humans don't even inhabit 0.01% of the world's land area.

 

[C130]

Pffft, you think humans can impact nature? Not a chance. Humans haven't even used up 0.0000001% of conventional oil.

we got maybe 2 decades max of conventional oil left.
might be even less.

 

[Superboy]

we got maybe 2 decades max of conventional oil left.
might be even less.

Nature makes oil way faster than humans can burn oil. In other words, practically infinite. CO2 level is now 401 point something.

ESRL Global Monitoring Division - Global Greenhouse Gas Reference Network

 

[C130]

Nature makes oil way faster than humans can burn oil. In other words, practically infinite.

yeah and the pope can piss petrol.

 

[Chinese-Dragon]

Nature makes oil way faster than humans can burn oil.

Now you are just trolling deliberately.

 

[nvKyleBrown]

The worse for US oil producers since they earn in dollars. Russian oil producers do not earn in dollars. They earn in rubles, so you have to multiply $ amount by $ to ruble exchange rate, and that thing grows when $ oil price falls. So, Russia increases oil supply to hurt US shale producers. Russia earns more. The US loses money.

Um, no. Your math skills are lacking. Russia sells internationally - in dollars (mostly). But, it doesn't matter ultimately what the currency is, it's TRADE. You give something, you get something in return. What low oil prices mean is that you get less back in return. Whatever it is you are buying from the West, you will have to give more oil to get the same stuff, if you are an oil producer. The currency it's denominated in is not relevant, other than if you use a volatile currency, you make gain or lose money while the transaction is in progress due to currency rate changes. In this case, it would be good to denominate the trade in rubles for the buyer, since when payment is actually provided, you could buy the rubles for less due to the ruble depreciating in value.

E.g. You (say China) sign an agreement with Russia for say, 3000 rubles/barrel for some number of barrels, payment to be made in installments as deliveries are made over 6mo. If you had signed this agreement in June (30rubles/1dollar) it would cost you around $100/barrel to buy the rubles to make the payments in June. Today the payments on the same contract would only cost $60/barrel (whoa, what a coincidence, that's about the price of oil!) (math 3000 rubles @ 50 rubles/ 1 dollar).

You can use Renminbi if you like, but the math is going to come out very similarly - the ruble is effectively tied to the price of oil. Falling oil means falling ruble, means Russia gets less foreign stuff, no matter who they trade with or what currency they use.

Repeat till your blue in the face: there is no way for Russia to come out ahead on falling oil prices. Shipping more oil only makes the price drops more severe, but there isn't much Russia can do about it, given the Gulf States collective unwillingness to slow production.

 

[C130]

a simple solution could be trade oil for gold.
but I think the last person to suggest that was Muamarr Gaddafi and you saw what happened to him.

 

[OTTOMAN]

If these kind of situation continues then "Oil deficient" Chinese would overtake America economically sooner than expected.

So basically, you are suggesting to American, of a accelerated Armageddon due to current dip in oil prices !