end quote from:
To the best of my ability I write about my experience of the Universe Past, Present and Future
Top 10 Posts This Month
- A Tragic Loss | Tesla Motors
- These Are The Possible Future Leaders Of Britain
- HTTPS?
- For example, an IPhone is probably the most vulnerable security device you can get. Why would I choose to have one?
- Volkswagen Beetle by Wikipedia
- Ancien régime: (or the monarchy before Louis XVI was guillotined along with Marie Antoinette)
- Ray Kurzweil created the idea of the Singularity in regard to Artificial intelligence. He believes it will come by 2050
- Ford Model T (produced from 1908 until 1927)
- 'First to sue': Opposing Trump's desire to end birthright citizenship is personal for this AG
- Trump reverses course on 20% fee for Strait of Hormuz cargo, citing trade deals
Showing posts with label Oil. Show all posts
Showing posts with label Oil. Show all posts
Wednesday, October 28, 2015
Oil
I was just thinking why BP is having financial problems and thought about the big oil spill under the ocean in the Gulf of Mexico a few years ago. All the fines and cleanup and penalties they suffered likely dropped their bottom line now into the red. However, most oil companies likely learned to save for a rainy day, especially after Saudi Arabia dropped the prices the last time in 1989 or therabout which ended the Soviet Union through oil prices then. Even now, Russia only has 1 year left of it's emergency funds of built up oil revenues before they are in trouble too. So, other oil companies likely have emergency funds saved up so they might last longer than BP.
Monday, December 1, 2014
Oil
The price of oil is likely to continue going down at least for the time being. However, it also could go up without warning too.
But, the stock market does not like uncertainties beyond a certain point. So, the stock market might be strange as oil drops further and further the way hedge funds are predicting (to zero).
In the end who knows what will drive the price?
However, we know one thing for sure:
Middle Eastern Sunni and Shia governments don't want ISIL to over throw their governments. Lower oil prices is one way to prevent ISIL supporters to have the money to donate to ISIL. It is also a way to prevent Sunni and Shia governments from collapsing from ISIL. However, I'm not sure how this will work in Iran which is the primary Shia government in the Middle East and I'm not sure what this is going to do long term to Russia either when combined with other economic sanctions from the U.S. and Europe and many other countries around the world.
However, what this actually will do to both the middle east and the world is a complete unknown for the present either in the short run or the long run.
The biggest danger I see is oil going to zero within a year or two and then rising up to 20 or 30 dollars a gallon for some reason. This could easily set off a worldwide great depression when the price rises too high all of a sudden for whatever the reason worldwide all at once.
You might say to me, "What could cause this?"
That is actually easy. ISIL could cause this. Putin could cause this. Ebola could cause this. Other as of yet unknown factors like Global Climate change could cause this or even other things no one has thought of yet.
But, the stock market does not like uncertainties beyond a certain point. So, the stock market might be strange as oil drops further and further the way hedge funds are predicting (to zero).
In the end who knows what will drive the price?
However, we know one thing for sure:
Middle Eastern Sunni and Shia governments don't want ISIL to over throw their governments. Lower oil prices is one way to prevent ISIL supporters to have the money to donate to ISIL. It is also a way to prevent Sunni and Shia governments from collapsing from ISIL. However, I'm not sure how this will work in Iran which is the primary Shia government in the Middle East and I'm not sure what this is going to do long term to Russia either when combined with other economic sanctions from the U.S. and Europe and many other countries around the world.
However, what this actually will do to both the middle east and the world is a complete unknown for the present either in the short run or the long run.
The biggest danger I see is oil going to zero within a year or two and then rising up to 20 or 30 dollars a gallon for some reason. This could easily set off a worldwide great depression when the price rises too high all of a sudden for whatever the reason worldwide all at once.
You might say to me, "What could cause this?"
That is actually easy. ISIL could cause this. Putin could cause this. Ebola could cause this. Other as of yet unknown factors like Global Climate change could cause this or even other things no one has thought of yet.
Monday, April 28, 2014
US Slams Russia With More Sanctions Targeting Banking, Aviation, Oil
U.S. Slams Russia With More Sanctions Targeting Banking, Aviation, Oil
4/28/14 at 1:28 PM
Russia's President Vladimir Putin speaks during a televised meeting with regional media in St. Petersburg, April 24, 2014.
Michael Klimentyev/RIA Novosti/Kremlin/Reuters
Filed Under:
World
Calling Russia’s role in the latest rounds of
violence in eastern Ukraine “indisputable,” the White House unleashed
its toughest raft of sanctions yet on Monday, targeting the country's
banking, finance, aviation and oil and gas sectors—a move that brings it
much closer to hobbling large swaths of the Russian economy.
The new slate of sanctions named seven additional people to
the list—all seen as close to President Vladimir Putin—and 17 entities,
including Russian officials and companies representing critical sectors
of Russia’s economy, bringing the total number of individuals and
entities blacklisted as of Monday to 64.
[Related: How the West is Pushing Putin's Buttons]
The sanctions against Russia, which began in early March,
have been ratcheted up in recent weeks as conflicts continue to escalate
along Russia’s eastern border with Ukraine. Last week, President Barack
Obama threatened that sanctions would intensify if Russia did not
actively move to disarm combatants and defuse the tensions, in
compliance with the April 17 Geneva agreement.
“Russia’s involvement in the recent violence in eastern
Ukraine is indisputable,” the White House said in a statement on Monday,
announcing the new sanctions.
The latest blacklist, seen as the toughest on Russia yet, focuses on the business interests and finances of Russian billionaire Gennady Timchenko, who was already blacklisted in March.
The U.S. Department of the Treasury, in conjunction with the White
House, froze the assets of Volga Group, a privately held,
Luxembourg-based investment vehicle of Timchenko, and Stroytransgaz
Holding, an engineering and construction company to Russia’s oil and gas
industry—also controlled by Timchenko.
Russian businessman Gennady Timchenko
Grigory Dukor/Reuters
Volga Group, which holds Timchenko’s assets, calls itself
“one of the largest investment groups in Russia,” with “investments in
18 core companies, located mainly in Russia.” The investment firm had
consolidated revenue in 2012 of $116 billion, based on investments in
energy, logistics, infrastructure, financial services and consumer
goods.
Volga Group holds the proceeds from Timchenko’s sale of his stake in oil-trading firm Gunvor Group last month, Newsweek has
learned. The sale took place the day before his blacklisting on March
20. Timchenko is a co-founder of the firm—with headquarters in Geneva
and Nicosia, Cyprus—but no longer a shareholder.
“None of the companies mentioned by the U.S. has any
connection to events in Ukraine,” Stuart Leasor, a London-based
spokesman for Volga Group, told Newsweek.
In striking out at Timchenko through Stroytransgaz Holding
and its subsidiaries—including one in the offshore tax haven of
Cyprus—the U.S. also targeted a key component of Russia's gas exports,
as its clients include Gazprom, ConocoPhillips and Saudi Aramco,
according to Stroytransgaz’s website. Timchenko owns a controlling stake
in Stroytransgaz, according to Itar-Tass, Russia's state-owned news
agency.
The U.S. also sanctioned Igor Sechin, a long-standing
member of Putin's inner circle and the executive chairman of Rosneft,
the state-owned Russian oil company. He is a leader of the so-called
Siloviki group of nationalists and conservatives composed of senior
current and former security and intelligence officials in Russia. It is
not immediately clear what Sechin's stake in Rosneft might be or how any
stake might affect Rosneft's dealings with foreign oil companies and
banks. Rosneft has agreements with ExxonMobil to explore vast oil tracts
in the Arctic and Western Siberia, among other regions.
Also hit was Avia Group LLC, a company with close ties to
Moscow's Sheremetyevo International Airport, Russia's main international
airport, and a related Avia Group unit in St. Petersburg, Avia Group
Nord.
Avia Group has been working to build a business aviation
center in Moscow that would cater to Russian and foreign investors. It
also has subsidiaries and related entities in New York, London and
Dubai, among other major cities.
Of the 24 new individuals and entities named to the Russia
blacklist, around 10 of the sanctioned entities are connected to
Timchenko via Volga Group.
In a recent interview with Newsweek, David Cohen,
Undersecretary at the U.S. Department of the Treasury for Terrorism and
Financial Intelligence, which puts out the blacklist designating U.S.
sanctions, said that the U.S. was certain of Putin’s links to Timchenko,
although he would not elaborate in detail on what they were.
“I will say that in all of our designations, we take great care before we designate someone,” Cohen told Newsweek before
the latest round of sanctions. “We have to meet a legal standard, and
all of these designations are subject to challenges in court. We have
never lost a case where someone has challenged our evidence.”
The Office of Foreign Assets Control,
part of the Department of the Treasury, is responsible for blacklisting
people and entities hostile to American national-security interests
under presidential national emergency powers. In the recent past, it has
sanctioned heads of state such as Syrian President Bashar al-Assad.
At present, the blacklist includes nearly 6,000 people and
entities around the world, including the latest sanctions against
“specially designated nationals” from Russia and Ukraine.
Last week a Treasury representative said the possibility of adding Putin to the blacklist was not off the table.
Related
Subscribe to:
Posts (Atom)