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The Petrostate Hex: Visualizing How Plunging Oil Prices Affect Currencies
Every day, the world consumes 93 million barrels of oil, which is worth $4.2 billion.
Oil is one of the world’s most basic necessities. At least for now, all modern countries rely on oil and its derivatives as the backbone of their economies. However, the price of oil can have significant swings. These changes in price can have profound implications depending on whether an economy is a net importer or net exporter of crude.
Net exporters, countries that sell more oil abroad than they bring in, feel the sting when prices plunge. Less revenue gets generated, and this can impact everything from balancing the budget to the value of their currency in the world market.
Net importers, on the other hand, benefit from lower prices as it decreases input costs for production. For example, a country like Japan only meets 15% of its energy needs domestically, and must import 3.5 million barrels of oil each day. A lower oil price significantly decreases these costs.
For many major net exporters of oil, changes in oil prices are highly correlated with their currencies. With oil prices crashing over the last year, currencies such as the Canadian dollar and Russian ruble have been highly impacted in terms of USD. But the impact of oil on currency depends on how central banks approach to policy.
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Thank god for all those dead lizards and palm trees that made this possible, huh? /s
spot on haole. anyone using the term 'fossil fuel' may as well stamp dumbfck on his forehead
"Every day, the world consumes 93 million barrels of oil"
how many dinos have been pumped out of the ground over the last 100 yrs?
Correct Cheka. See "Abiotic Oil" .... Hydrocarbons (so called "fossil fuels") are naturally occuring through chemical synthesis in the earths mantle and are present in comets.
This has not been proven by any means. Pure speculation at this point. At this date, no known processes produce hydrocarbons whic have an organic base by definition. It has been proven that oil comes from plant and animal life. If you have proof otherwise, show it. Otherwise you are showing your ignorance.
Proof is subjective and interprative, the Earth used to be a ball of flaming butane called the sun, it was extunguished by water from a dying planet leaving the means for life once the elements calmed down. Then split apart so life could begin, so in theory, the hydrocarbons are limitless until they are not, and then the whole process starts again. They didn't teach you that in school? I wonder why, perhaps education is pure speculation today and nearly worthless.
I'm gonna go with Hank Hill's expertise on this subject..
to him, butane is 'bastard gas'....Nice try Poindexter..
Here is a NASA link that may help you understand that hydrocarbons are everywhere in great volumes. The price of oil is created to contrlo the masses. It always has. Thats why alternatine energy sources have been surpressed for decades. It s all controlled.
http://www.nasa.gov/mission_pages/cassini/media/cassini-20080213.html
Ask yourself why hasn't a thorium breeder reactor been developed? It because energy would become cheap and readily available to everyone and energy is the one thing we all need. Wake up man! We need to stop being so fucking controlled by inbred selfish sociopaths who believe they own the world and only they can control everything. They don't deserve and they certainly had their chance and have failed. IMHO.
Japan failed with those things and then went into full bore denial about it, that's why you don't hear about it, the spent rod issue never gets resolved because there is always another SUCKER to pick up the dream and run with it. Cold fusion and consequences bitches!!
"This has not been proven by any means."
This is summary bullshit and a blatant lie.
Tell that to the Russians who proved it in the 50s and have perfected deep drilling since.
Why are there vast oceans of petroleum within the Earth's mantle, quite a few miles deeper than ANY organic matter has ever been sourced? Fact.
Prove how this happens, otherwise you're not only showing your ignorance but outright hypocricy.
Plunging oil prices aren't the half of it. Could you imagine the price of oil or gold if the interest rate was 6 percent. Gold would be worthless. Oil would be ten dollars a barrel. Deflation. Learn it, live it, love it.
If abiotic oil is a fact, then why are oil fields around the world becoming depleted one after another?
The tooth-fairy produces oil, too, but she just never gives it out...same thing.
Even if oil was abiotic there sure isn't a huge bounty of it otherwise China wouldn't be sitting there taking in the bum being dependent on others for their supply. If you buy into the abiotic/abundant oil theory by necessity you almost have to believe that the entire planet, no countries excluded, are under control by a single group in agreement, we are getting pretty close but that hasn't happened yet.
I'm not saying that TPTB wont make things appear scarce if it benefits them and they can get away with it but to contain and hide oil on a global scale when nuclear powers with enormous land masses are in need seems highly unlikely, at least for now.
In my book abiotic oilers are right up there with the flat earthers.
There is a possible mechanism by which abiotic oil can be formed. It is the mechanism of gravitons with perfectly inelastic collisions with atoms of the earth as proposed by Le Sage gravitation theory; this in turn creates quantum changes in mass of atoms in the earth over time, with some atomic by-products, including hydrogen, oxygen and carbon. The carbon and hydrogen combine in various proportions to form what is called oil. This mechanism of Le Sage gravitons also can explain the formation of water.
And how did those dinos find their way miles below impervious rock?
Sedimentation, subduction, volcanism, glaciation, alluvial processes.
Geology iz hard
It's a good job 'God' put all that oil there...just to test our faith (...and to have us killing each other over it for years and years) He loves a good fuckin' fight does that 'God' fella, just as much as the next 'God'.
alot of it is actually algae beds that froze in last ice age
That and swamps too wasn't it. If you ever ever seen a swamp in the fall there is quite a bit of organic debris piling up, just imagine the turnover in the everglades.
I found what appeared to be a fossil of a seed pod or maybe even a turtle shell in a chunk of coal when I worked on an above ground coal mine and I still have it in a zip lock.
Petroleum as we know it cannot continue within the financial system as we know it.
Very soon it will take one barrel of oil to extract and refine one barrel from the ground. Then it will take 2 barrels, then 3, then 4.
It's not necessarily game over for petroleum, but it damn sure is game over for modern sociaety as we know it unless the financial chains are broken quick!
If you do the math, it comes down to 1 1/2 gallon of oil, per person on this planet per day.
I think that's a lot.
I use a lot more per day in py car, if I see the plastic in the garbage every week en all the energy we use, it mean there's a lot of people who have a lot less.
But allover the planet usage is growing.
This morning in the sunday papers, there was a article where people who are now starting to stock up on oil for the winter get to pay way higher premiums above legal maximum price because demand is way higher then supply.
Now... for over 1 year, investments are slowing and demand keeps growing.
Remember: demand NEVER went down. Only growth of demand stopped rising as fast as it did before.
I really don't buy that 15 dollar oil crap. Usage would explode like in then70's and we'd be out of oil in a decade.
And it's exactly what we're seeing now.
People only used to fill up half a tank for the winter, now they fill it up full because it's cheap and nobody discusses about a degree more or less in the house anymore.
159 x 93m / 7B = ~ 2.1 L or ~ 0.55 Gallon.
Modern societies (as we know and love them) need about a 9:1 production ratio to keep their heads above water...anything below that gets ugly really fast, as we shall see.
Well, lol... All I know, is that "go--go juice" is about 20% higher in the land of 'Fruits and Nuts".
I realize refiners take for-ever to reformulate the fracking. {sarc}
How oil affects currencies? I was a bit "off topic".
I'm stuck in this Biffeyport-o-potty without any toilet tissue in the middle of Caracas<>
If it's your day to shop, get in line.
I have a friend who has been in Caracas since about 1976. Things are just not the same any more.
You can actually see more clearly when you remove your head from Caracas.
Sustainable nuclear energy?
https://www.google.co.il/search?q=ghoul&rlz=1C1GGGE_enIL432IL433&espv=2&...
Build a Thorium reactor and change the world. If they don't kill you first and shut it down.
http://www.whatisnuclear.com/articles/thorium.html
20%?
I can buy a bag of cheese curls in Caracas for only 500Bs a bag. These are new bolivars, and equivalent to 500.000 old bolivars, after they erased 3 zeros of the currency.
The same snack was selling for 0.5 bolivars when i was a kid. The price went up by a factor of one million.
I don't believe the 93 million barrel figure. Like everything else I believe it to be vastly inflated from reality.
I do believe the financial system requires 93 million barrels to be transferred through its system to satisfy its version of reality.
The Chinese claim our economy is really 7 trillion dollars, not the near $18 trillion we claim. Funny how by my own estimation I came up with 5-6 trillion for our economy.
The world produces hundreds of billions of goods beyond what it needs, and even can possibly consume. These goods are never sold, never actually consumed. The overproduction is required by the stock market fantasy to keep the con game going. How much oil does this overproduction to satisfy the stock market require? Millions of barrels?
If a company trades at 30x earnings, or 16x sales, what does that say? It says the company must grow 30x its current size. An impossibility. Apple may claim they sell a few hundred million phones, reality is that most of them never reach consumer hands. A smartphone can last more than one year, nobody needs a new one every year especially since there is no advantage other than smug over the old device. I have had the same phone since 2012. It has a dual core processor, HD screen, 1gb of ram, and 16gb of storage. Amazingly it still works fine.
As the age of expanding credit ends, the need for foolishly wasting oil to satisfy the expansion ends as well. The future is drowning in commodities nobody cares to consume. The death of credit will make it impossible for people to consume more than they need because they won't be able to afford to.
eloquent stuff, good sir
If you calculate this out to each human being, the 93M traslate to roughly 2 liters of oil (just a bit more than have a gallon). Fact or fiction ? Could be close (+- 10%) to fact IMHO.
What the fuck is this?
A fucking ninth grade report on energy in the world economy?
I wanna see a fucking report on the net sales contribution of hookers, blow, guns, leather bustiers, porn, human trafficking, tatoos, heavy metal music, gambling, beastiality and L.A. psychoanalysts to the world GDP, correlated to the net annual growth rate of derivative sales from the venerable scum bags at Goldman Sachs, JP Morgan, BofA, Barclays, and Citigroup.
Give me lots of pretty graphs and more fucking Cowbells!
For fuck's sake, Bitchez.
Yeah. Just wait until the Sunday open.
Name calling only gets you so far, Broom Hilda/
He forgot pencil skirts and 6" red soled spiked pumps shown off by seamed stockings. And lipstick. Lots of blood red lipstick.
The modern woman in the kitchen look.
Make some up yourself, call it official, get a majority to believe, and you are good to go.
As if there were any "official" numbers on hookers & blow.
For a start I'd say there's a reason the service economy is still going strong, along with luxury good producers. The rich still need waiters and bartenders.
I humbly offer a pretty avatar.
so when and how do we engineer petrol OUT OF the transport, industrial and financial systems. what replaces it. who controls and profits. who consumes and pays
bitcoin ASIC mining. stuff to buy. stimulate the economy. https://www.youtube.com/watch?v=JqnbtFHlOsA
The Chinese are really desperate?
The simple fact is that the PBoC has increased the GDP by 1500% in roughly 20 years.
Pikers get called out eventually? The fed is going to soak those UST back in. QE~ bitchez
SARC/
That's their only choice; "The fed is going to soak those UST back in. QE~ bitchez" if they start selling enough.
Hah ha ha ha ha ha
Raise rates, my ass. And if they do, we'll see one of the greatest Bull Falteners (long bonds rallying) maybe ever!
Venezuela does not have a fixed exchange rate. It has at least 3 rates, 6 bolivars per dollar, if you have a permit to buy, 200 per dolar on the legal semi black market, approaching 1000 per dollar on the illegal black market. I think there might also be a second legal rate.
It would be easier for Venezuelas trade balance not to have to import even the products that used to be produced there and are now imported. Such as meat and milk. One third of Venezuela is grassland and raising cattle is far easier there than growing grains. The practice has now been banned in actual practice, through insane price controls and lawlessness.
If those socialist politicians in Caracas would remove their heads frm the crack of their ass then they'd be able to wipe some of their shit clean off the board with some of their printed Toilet Paper which they use as a currency.
But somehow the socialists seem to enjoy the odor of the shit which they excrete.
So yeah...I must agree...Getting rid of the shit regulations, price controls, and criminality would be a start. They need to flush that crap...right down the toilet.
Fucking socialists!!!
"Los Mexicanos, ni saben alejarse .... de su propria mierda !" .... uttered at Alfonso's sidewalk cafe and pizza parlor in Ensenada .... shortly after the sewers in Guadalajara exploded .... in the early nineties ?
There needs to be a ministry of lies somewhere coordinating all the points that the media and banks and governments try to make people believe. These situations require a complex management to avoid collapse. I don't think anyone can point to data and say they know without doubt it to be true anymore. Peak oil . 9/11. immigration the war on terror for fucks sake none of these are remotely as they are presented. Yet someone seems to think the destruction of the world's economy is somehow going to be a net benefit for themselves. The only way that will turn out to be true is if it results in a vastly lower population and drasticly reduced lifestyles for everyone but a select few. OK that is really going to happen so just figure on standing at the door defending the last few moments of your liife cause once it tips forget the world you know now.
Come down from your pandemic, academic ivory tower .... speak to me .... 93 million barrels .... how many olympic swimming pools is that ?
159 liters x 93 x 10^6 / (30 x 250 x500) = 3943.2 olympic swimming pools (50m x 25m x 3m)
Socialist stimulus accounts for millions of wasted barrels of oil .... Alfuckingore !
Indonesia is a net oil importer, not exporter. Has been for at least 15 years and getting worse every year.
93M barrels is ~4.2B U$ (@46$pB). Now if only 5% of oil producers were to exchange their proceeds into fizzical gold that would be 191k ounces per day (valued at 1120$ an ounce) or ~70M ounces a year (or 2170 metric tons of gold). At 10% precent... you get the drift. Will this play ever come to live, or is it already ???