Topic: Russian Ruble drops 12% in one day. (Read 6539 times)
If the general population in Russia knew they could move to bTC easily without repercussions from Russia they would have done it and we would all be rich by now
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If it costs $30 to produce a barrel of oil in country A, and $70 in country B, would oil price dropping to $60/barrel affect both countries equally?
Of course not. Country B would have to sell its oil at a loss
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In your example country B would need to stop mining oil until it's price rebounds for a somewhat long term before it would make sense to resume mining which would result in lost jobs and a slower economy
According to wikip:
"Break-even (or break even) is the point of balance between making either a profit or a loss."
I agree with the wikipedos: Breaking even has nothing to do with being able to pay the mortgage or balance a country's budget.
If Libya can charge more for a barrel of oil than it costs it to get that barrel out of the ground, Libya is doing better than breaking even. Its other expenses are neither here nor there
/aspie nerd mode
Have to agree with you here. Still, that doesn't change the fact that oil-producing countries suffer from falling oil prices "Break-even (or break even) is the point of balance between making either a profit or a loss."
I agree with the wikipedos: Breaking even has nothing to do with being able to pay the mortgage or balance a country's budget.
If Libya can charge more for a barrel of oil than it costs it to get that barrel out of the ground, Libya is doing better than breaking even. Its other expenses are neither here nor there
/aspie nerd mode
According to wikip:
"Break-even (or break even) is the point of balance between making either a profit or a loss."
I agree with the wikipedos: Breaking even has nothing to do with being able to pay the mortgage or balance a country's budget.
If Libya can charge more for a barrel of oil than it costs it to get that barrel out of the ground, Libya is doing better than breaking even. Its other expenses are neither here nor there
/aspie nerd mode
"Break-even (or break even) is the point of balance between making either a profit or a loss."
I agree with the wikipedos: Breaking even has nothing to do with being able to pay the mortgage or balance a country's budget.
If Libya can charge more for a barrel of oil than it costs it to get that barrel out of the ground, Libya is doing better than breaking even. Its other expenses are neither here nor there
/aspie nerd mode
There is less than handful of major oil-producing countries that can bear current prices, that's because their budgets are very dependent on oil taxes.
Even Saudi Arabia has a breakeven price of oil of about $100.
Even Saudi Arabia has a breakeven price of oil of about $100.
From your link:
"Based on Citi’s research, Libya looks as if it could be facing a serious fiscal hole, with its breakeven for 2015 at $315."
Unlikely oil will hit $315 anytime soon
Guess Libyans could try eating their young...*seriously tho, do you not see a problem with that definition of "breakeven" [sic]?
Anyways, this definition of "breakeven" means that these countries will have to cut their spending somehow. Saudi Arabia directly cuts its expenditures and digs in reserve funds, while in Russia currency devaluation helps cut budget indirectly in real terms.
There is less than handful of major oil-producing countries that can bear current prices, that's because their budgets are very dependent on oil taxes.
Even Saudi Arabia has a breakeven price of oil of about $100.
Even Saudi Arabia has a breakeven price of oil of about $100.
From your link:
"Based on Citi’s research, Libya looks as if it could be facing a serious fiscal hole, with its breakeven for 2015 at $315."
Unlikely oil will hit $315 anytime soon
Guess Libyans could try eating their young...*seriously tho, do you not see a problem with that definition of "breakeven" [sic]?
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Not necessarily. Again, don't know enough to call it, but here's a hypothetical:
If it costs $30 to produce a barrel of oil in country A, and $70 in country B, would oil price dropping to $60/barrel affect both countries equally?
Good point. But look at this from a different angle. There is less than handful of major oil-producing countries that can bear current prices, that's because their budgets are very dependent on oil taxes.If it costs $30 to produce a barrel of oil in country A, and $70 in country B, would oil price dropping to $60/barrel affect both countries equally?
Even Saudi Arabia has a breakeven price of oil of about $100.
Btw I admit that, thanks to shale oil and the possibility to quickly raise production, there won't be high prices in the coming years.
Losing trade with Russia does hurt Europe and other places, some worse then others but in the main Russia was and is about oil and gas and they can be replaced.
How do you replace 7 million barrels a day oil exports from Russia? That's like 8% of all world supply.By decreasing demand? By other countries producing more? By splitting coal & burning atoms?
Who knows, maybe them newfangled solar panels, windmills, and biodiesels have finally reached the tipping point?
I know next to nothing about oil, but:
Oil producers are not operating at max capacity. They're not sucking out oil out of the ground at any cost. Here's a (outdated) profitability chart:
If the supply is reduced by 8%, the price would go up enough to make some of the unprofitable wells profitable again. Outcome: oil a bit more expensive, but no shortage.
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As of renewables development, if it allows us to significantly lower oil demand, then the oil industry will suffer as a whole, not only Russia.
Not necessarily. Again, don't know enough to call it, but here's a hypothetical:
If it costs $30 to produce a barrel of oil in country A, and $70 in country B, would oil price dropping to $60/barrel affect both countries equally?
Of course not. Country B would have to sell its oil at a loss
But you're right about renewable energy thingies, I was just joking. Coal and nuclear - those are real, tho.
Losing trade with Russia does hurt Europe and other places, some worse then others but in the main Russia was and is about oil and gas and they can be replaced.
How do you replace 7 million barrels a day oil exports from Russia? That's like 8% of all world supply.By decreasing demand? By other countries producing more? By splitting coal & burning atoms?
Who knows, maybe them newfangled solar panels, windmills, and biodiesels have finally reached the tipping point?
As of renewables development, if it allows us to significantly lower oil demand, then the oil industry will suffer as a whole, not only Russia.
Losing trade with Russia does hurt Europe and other places, some worse then others but in the main Russia was and is about oil and gas and they can be replaced.
How do you replace 7 million barrels a day oil exports from Russia? That's like 8% of all world supply.By decreasing demand? By other countries producing more? By splitting coal & burning atoms?
Who knows, maybe them newfangled solar panels, windmills, and biodiesels have finally reached the tipping point?
Losing trade with Russia does hurt Europe and other places, some worse then others but in the main Russia was and is about oil and gas and they can be replaced.
How do you replace 7 million barrels a day oil exports from Russia? That's like 8% of all world supply.I do not think we can replace that amount of oil. However, the price of oil can be manipulated down.
Losing trade with Russia does hurt Europe and other places, some worse then others but in the main Russia was and is about oil and gas and they can be replaced.
How do you replace 7 million barrels a day oil exports from Russia? That's like 8% of all world supply. 
Running away from a bad environment would seem to be alot different to running away from oneself though its true wherever you go, there you are! Losing trade with Russia does hurt Europe and other places, some worse then others but in the main Russia was and is about oil and gas and they can be replaced.
The way Putin controls that country is not really to its benefit beyond keeping basic order which I presume they could do without him, Russia can be replaced in global trade which does make sanctions far harder for them then us. Im not sure they will be forced to change course as they do have China and if Cuba is any example it can take a very long time to change anything
Overall I rate Putin as a moderate, he is not the worse you could have. I fear situations like Libya where they seem to spiral downwards without forced unity, would sanctions have done better there
The way Putin controls that country is not really to its benefit beyond keeping basic order which I presume they could do without him, Russia can be replaced in global trade which does make sanctions far harder for them then us. Im not sure they will be forced to change course as they do have China and if Cuba is any example it can take a very long time to change anything
Overall I rate Putin as a moderate, he is not the worse you could have. I fear situations like Libya where they seem to spiral downwards without forced unity, would sanctions have done better there
worth watching:
https://www.youtube.com/watch?v=Un5rsKFo7Xo
https://www.youtube.com/watch?v=Un5rsKFo7Xo
Well, it's easy to understand. They are the successful Russians who have escaped to live a better life and who dislike Putin (actually, they don't talk much about it any longer), and there are the poor Russians who cannot escape, and who suffer everyday because of Putin's failure regarding economics growth and job creation. The amazing part is that all those poor Russians shall dislike Putin, but they still like him. They live poorly but something immaterial, unreal, a spiritual invention, their country (!), stays relevant a little while longer. I'm ashamed by my citizenship, and I would be much ashamed too if I were Russian.
As I got you are living not in Russia. So, how do you know what Russians feel, what they think, e.t.c.? Why do you believe that your point of view is the only one deserving to follow? Of course, you have the right to have your own opinion about Russia based on any sources of information you like, but don't speak for Russians because you have no idea.
P.S. You can run away from economic problems, regime, whatever. The only thing you can't run from - yourself.
Running from myself? I don't understand that. People need to run from oppressive regimes, and that's what I did, like my few Russian friends. Everything's nice since then.
You see, you can't understand the simple thing that every Russian knows!
Please explain, then.
I guess both of us are not native English speakers, and "running from oneself" is not something meaningful to me. Or do you think about people with psychological, or identity problems, like some immigrants trying to mix with locals in their new country, but who can't, because of their skin color, or whatever?
I'm not like that. I'm a simple guy, no identity or psycho problems.
Quote
1. No matter where you go, you can’t get away from yourself.
I expected that life would suddenly become magical — I would suddenly be filled with happiness and enlightenment. Running away, however, doesn’t solve anything. Even though moving to Ireland aided in my self-discovery, it didn't instantly solve my internal issues: my anger, sadness, self-criticism. Once I realized that life in Ireland was just as mundane, difficult, and real as it was in Chicago, I was able to ask myself why I had really moved halfway across the world from everyone I loved.
http://www.mindbodygreen.com/0-12721/no-matter-where-you-go-you-cant-get-away-from-yourself.htmlI expected that life would suddenly become magical — I would suddenly be filled with happiness and enlightenment. Running away, however, doesn’t solve anything. Even though moving to Ireland aided in my self-discovery, it didn't instantly solve my internal issues: my anger, sadness, self-criticism. Once I realized that life in Ireland was just as mundane, difficult, and real as it was in Chicago, I was able to ask myself why I had really moved halfway across the world from everyone I loved.
I don't like much to talk about me, and even less about my past, but leaving the country where I was born was the best thing I've ever done. Nobody liked me there.
Most people back there are just waiting for the government do help them, but I didn't want that, and I started my first business when I was 18. My friends from that time didn't like it, and they didn't help...
I'm now freer than I've ever been, living a more fulfilling life, making more money and going out with more interesting people. Just like the Russian people I've met in several places in Europe.
All that while Putin orders vodka price cap:
http://www.reuters.com/article/2014/12/24/russia-crisis-putin-vodka-idUSL6N0U81E920141224
The more the Russians drink, the less they'll understand. We'll have to agree that Putin was very smart with that move.
@RoadTrain
thank you. Exactly.
thank you. Exactly.
Well, it's easy to understand. They are the successful Russians who have escaped to live a better life and who dislike Putin (actually, they don't talk much about it any longer), and there are the poor Russians who cannot escape, and who suffer everyday because of Putin's failure regarding economics growth and job creation. The amazing part is that all those poor Russians shall dislike Putin, but they still like him. They live poorly but something immaterial, unreal, a spiritual invention, their country (!), stays relevant a little while longer. I'm ashamed by my citizenship, and I would be much ashamed too if I were Russian.
As I got you are living not in Russia. So, how do you know what Russians feel, what they think, e.t.c.? Why do you believe that your point of view is the only one deserving to follow? Of course, you have the right to have your own opinion about Russia based on any sources of information you like, but don't speak for Russians because you have no idea.
P.S. You can run away from economic problems, regime, whatever. The only thing you can't run from - yourself.
Running from myself? I don't understand that. People need to run from oppressive regimes, and that's what I did, like my few Russian friends. Everything's nice since then.
You see, you can't understand the simple thing that every Russian knows!
Please explain, then.
I guess both of us are not native English speakers, and "running from oneself" is not something meaningful to me. Or do you think about people with psychological, or identity problems, like some immigrants trying to mix with locals in their new country, but who can't, because of their skin color, or whatever?
I'm not like that. I'm a simple guy, no identity or psycho problems.
Quote
1. No matter where you go, you can’t get away from yourself.
I expected that life would suddenly become magical — I would suddenly be filled with happiness and enlightenment. Running away, however, doesn’t solve anything. Even though moving to Ireland aided in my self-discovery, it didn't instantly solve my internal issues: my anger, sadness, self-criticism. Once I realized that life in Ireland was just as mundane, difficult, and real as it was in Chicago, I was able to ask myself why I had really moved halfway across the world from everyone I loved.
http://www.mindbodygreen.com/0-12721/no-matter-where-you-go-you-cant-get-away-from-yourself.html I expected that life would suddenly become magical — I would suddenly be filled with happiness and enlightenment. Running away, however, doesn’t solve anything. Even though moving to Ireland aided in my self-discovery, it didn't instantly solve my internal issues: my anger, sadness, self-criticism. Once I realized that life in Ireland was just as mundane, difficult, and real as it was in Chicago, I was able to ask myself why I had really moved halfway across the world from everyone I loved.
The sanctions by EU have hit Russia harder than the sanctions by Europe.
Europe is one of the largest trading partners of Russia.
Plus the fact that Europe is able to trade within itself and trades with both China and the US (meaning that Russia is not as an important of a trading partner to europe)Europe is one of the largest trading partners of Russia.
http://money.cnn.com/2014/12/18/news/companies/russia-economy-brands-losers/
This is because of oil prices.
Maybe. Oil industries make up a substantial part of the Russian GDP (13.9% in 2012).
Oil prices have fallen by more then 50% in the past few months. This would translate to a more then 7% decline in the Russian GDP which is no small decline and is plenty of a reason for their currency to go into a free fall
The sanctions by EU have hit Russia harder than the sanctions by Europe.
Europe is one of the largest trading partners of Russia.
He is saying Russias problems lie with the nature and actions of its people, they allow Putin to be there not that 1 man is the cause.
Partly true I guess though Im sure you are your own person
Saudi talk Russian problems with producing oil at low cost - http://uk.businessinsider.com/saudi-oil-minister-hints-russia-doesnt-deserve-market-share-2014-12
Partly true I guess though Im sure you are your own person
Saudi talk Russian problems with producing oil at low cost - http://uk.businessinsider.com/saudi-oil-minister-hints-russia-doesnt-deserve-market-share-2014-12
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