the truth about Low Oil Prices, Russia is less effected than Saudi Arabia & OPEC

[Gabriel92]

Can we guys keep talking about the low oil prices and its effect on the Russian economy etc...

 

[Superboy]

Electronic money is just that, nada. Bullets and bombs do the talking these days.

 

[Raphael]

This will cause short-term pain for all oil-producing states, Saudi Arabia included. But in the long term, if this quashes the US shale oil industry, maybe most states will look back at these times as a "worthy" investment.

 

[Superboy]

The break even price of oil is 1 dollar per barrel. Anything over that and people are paying too much for oil and oligarchs are making too much off oil.

 

[nvKyleBrown]

This will cause short-term pain for all oil-producing states, Saudi Arabia included. But in the long term, if this quashes the US shale oil industry, maybe most states will look back at these times as a "worthy" investment.

The shale isn't going away. If prices go up, the field open up again. The existence of those fields effectively creates a cap on how high oil prices can go. As the technology improves, the cap gets lower. If prices are low, they don't pump (and the US benefits from low prices). If prices go up, the US hurts a bit, but the US producers turn on the taps and start making money.

Overall, the US benefits from lower oil prices. Yes, there are individuals and companies that benefit from higher prices, but the overall impact of lower oil prices is positive for the US (because the country is still a net consumer).

 

[pher]

it is just US' evil plan, and it will past.

 

[pher]

the capacity of US manipulating the world will become weaker day by day.