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| 27 Jan 2015 01:45 AM |
OPEC(Saudi Arabia, Iraq, Kuwait, Venezuela) is currently flooding the market with their oil. This causes the price per barrel of oil to drop. This drop makes it hard for many of the developing oil industries in several countries, such as the US and Canada, to make profit as the cost for drilling and refining oil usually leads to the companies going in debt. These companies had originally taken out these loans with the expectation that they could pay them back due to a high price per barrel. As the market is currently flooded and price per barrel has gone done, many offshore drills are forced to shutdown as they are no longer profitable.
Nations like USA and Canada are able to withstand these economic hits due to their diverse economy. They also have the power to pump more money into the oil industry and continue their growth in market share. One reason they haven't done this is due to the effect the drop of oil prices has on Russia. Russia is a nation whose economy is dependent on exporting raw materials and fixed prices. The price of gas lowers below the level of which Russia can make profit from selling their oil. As such their economy plummets. The lowering gas prices is a direct catalyst for the fall of the Russian Ruble.
Saudi Arabia also loses money from flooding the market. But in return, the action ensures that it maintains the largest portion of the market share(due to the decline of other oil producing nations outside OPEC such as USA, Russia, and Canada). While the US has the ability to forcefeed it's oil industry, it yields as Russia is hit much harder than the US. |
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| 27 Jan 2015 01:47 AM |
| few typos, on the last line of the first paragraph, I meant down, not done. |
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meldo
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| 27 Jan 2015 01:49 AM |
Thank you for educating me on the subject.
Unlike most of OT I actually took the time to read most of the thread, though I suspected it to have something to do with ruling people out. |
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| 27 Jan 2015 01:50 AM |
short version
Saudi Arabia tosses a bunch of oil to everyone
oil prices go down
everyone loses money
countries that have lots of variety in economy are alright
those who dont get rekt, bad
russia gets rekt bad
usa can stop saudi arabia but dont because russia is getting rekt
saudi arabia loses some money but wins in the end
usa loses some but wins in a bigger goal |
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operated
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| 27 Jan 2015 01:53 AM |
| soooo what do u guys think :b |
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operated
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| 27 Jan 2015 02:33 AM |
| Oil is a weapon by itself then? |
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operated
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| 27 Jan 2015 02:37 AM |
| More like the ability to control a nation's economy is. |
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| 27 Jan 2015 03:09 AM |
| Holy crap. Is OP being /serious/ for the first time? |
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operated
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| 29 Jul 2015 11:47 PM |
this was a while ago I posted this
yay
l |
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| 29 Jul 2015 11:49 PM |
i was having a similar conversation about this with my dad a few months ago and i didn't know venezuela was part of opec it seems kind of funny there all alone on the other side of the planet |
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| 29 Jul 2015 11:52 PM |
why did you even post this.
anyone curious could've looked it up.
also, this is an edited version of a post from haraatz.
gg |
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| 29 Jul 2015 11:57 PM |
'edited post by haraatz'
I wrote this all myself in january, which is when I posted this
l |
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| 29 Jul 2015 11:59 PM |
too much oil not enough swag
https://www.youtube.com/watch?v=15MqcNwkpq4&t=47s | skeleton of OT |
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| 30 Jul 2015 12:00 AM |
"too much oil not enough swag"
oil = black gold
gold = swag!!111 |
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| 30 Jul 2015 12:02 AM |
| must be coincidental, but har's was made in late of last year :^) |
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| 30 Jul 2015 12:09 AM |
show me the post, cause I wrote all of this myself
l |
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| 30 Jul 2015 12:09 AM |
| I'm glad she posted it. It's nice to see something actually useful on these forums. |
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| 30 Jul 2015 12:10 AM |
it's not a roblox post.
i'm not going to get banned for offsite links
:^) |
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| 30 Jul 2015 12:12 AM |
I just googled what 'haraatz' is and apperantly its an israeli news site. He thinks I an article off an israeli news site. And worst of all this has to be one of the worst news sources if all the information they could include was 3 short paragraphs.
l |
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| 30 Jul 2015 12:17 AM |
| yes it's obviously the first thing you see on the web |
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operated
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operated
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