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January 7, 2015 2:00pm by David Farrar

Oil prices last five years

That’s such a dramatic drop in the last six months. Long may it continue.

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Comment59

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oil
petrol prices

Comments (59)

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Lindsay Addie

AFAIK the long suffering Kiwi motorist is still getting totally screwed by the oil companies re the current retail prices………
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January 7, 2015 2:05pm
Shawn Herles

Good for the West, bad for Russia. Putin’s failure to diversify the Russian economy will be bighting hard now.
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January 7, 2015 2:06pm
Redbaiter

AFAIK the long suffering Kiwi motorist is still getting totally screwed by the oil companies re the current retail prices………

Don’t forget the govt gets at least half of what you pay for every litre of petrol.

And this is the kiss of death for exploration in NZ where extraction is quite costly. Bill English can kiss goodbye to another few billion dollars in royalties.
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January 7, 2015 2:16pm
Lindsay Addie

RB,

Yeah I forgot to mention Key and friends, those noble guardians of free enterprise…..
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January 7, 2015 2:18pm
louie

The ‘peak oil’ types have gone quiet lately.
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January 7, 2015 2:21pm
Redbaiter

Hey Simon (Bridges) if you’re reading this- those new punishing regulations on oil explorers and the huge costs increases for drilling permits were really such a great idea weren’t they?
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January 7, 2015 2:27pm
srylands

I wonder whether Dr Russel Norman is experiencing cognitive dissonance.

This is a classic from July 2008.

https://home.greens.org.nz/press-releases/10-litre-petrol-prices-decade-wake-call

Predictions from prestigious Australian research institute CSIRO that petrol could cost up to AUS$8 – about NZ$10 – per litre within a decade means we need to rapidly change course to avoid serious economic disarray, Green Party Co-Leader Russel Norman says.

“Petrol at that price would make the Government’s entire motorway building project a white elephant – modern day Easter Island statues. Our new motorways would be monuments to short sightedness and profligate waste of resources.

“Governments even contemplating building motorways like the billion dollar-plus Transmission Gully project in Wellington or the $2 billion Waterview tunnel project in Auckland are seriously out of touch with reality,” Dr Norman says.

“We need to rapidly and urgently invest in decent public transport in our cities, towns and provinces. It is expensive but no more so than building useless new motorway projects.

“We need to work with sectors exposed to higher oil prices such as freight transport, fisheries and agriculture to develop plans and start making investments that enable us to cope with much higher oil prices.

“We also need to invest in high speed broadband that will allow us to work and communicate more easily without travelling so much.

“We have no choice but to move to a far less oil-dependent economy, because rising prices will give us no choice.

“The choice we do have is to make that transition in a measured way, using our brains to see that while we may not like what’s heading our way we have no choice but to prepare for it.

“Easter Island statues might look interesting but the society that produced them was wiped out in part because of the cost of making them. Let’s not follow the Easter Islanders.”

ha ha ha ha “Let’s not follow the Easter Islanders”

I say thank you New Zealand for not electing Dr Norman to power at the 2008, 2011, and the 2014 elections that followed this dire warning.
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January 7, 2015 2:42pm
TM

Such a sudden big drop isn’t welcome. Investment in exploration and developing new wells and fracking will dry up. And when the current oil producers finally reduce production, prices will go through the roof.
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January 7, 2015 3:00pm
srylands

The 2008 quote from R Norman could easily be picked up by a decent journalist during this quiet news time, and an interesting article written. Instead we get stories about ACC claims for lama attacks.

6.5 years on it is a fascinating reminder of how dangerous the man is. It also shows the folly of governments predicting trends 10 years out and investing serious money on the back of those trends.

Responses to energy price movements are best left to markets. There is little doubt that in decades to come our transport infrastructure will be very different. Markets should determine those changes. Not R Norman.
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January 7, 2015 3:04pm
Adolf Fiinkensein

TM

You’ve just summed up the Saudis’ predatory pricing policy. They are trying to break the American shale oil industry.
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January 7, 2015 3:05pm
Manolo

Where is comrade Norman who was predicting (and gloating) oil would be USD 200 in no time?
Where is the communist?
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January 7, 2015 3:06pm
2boyz

Let’s enjoy it while it lasts, 18 months to 2 years tops. Once the small time players (frackers & less stable oil producing tin pot nations) drop by the wayside due to low price per barrel we will see things return to an upward trend.

Don’t head out and buy that gas guzzling SUV or V8 anytime soon. But like me, please enjoy the price at the pump (hopefully down still further).
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January 7, 2015 3:07pm
Simon

In a capitalist countries oil owning shareholders get cleaned out because they made a wrong call. In centrally planned economies, such as Venezuela, Iran & Russia (maybe Norway) where planning of the economy is around high oil prices then living standards collapse.

Thats one of the differences between socialism and capitalism. Remember that next time when Wussel Norman and the Greens want to organise everyone’s energy needs.

Only colossal fools or utter frauds would presume to centrally plan an economy.
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January 7, 2015 3:09pm
hj

The ‘peak oil’ types have gone quiet lately.
…..
It could be a signal that high oil extraction costs are dampening the world economy?
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January 7, 2015 3:20pm
slijmbal

@2boyz

“Once the small time players (frackers & less stable oil producing tin pot nations) drop by the wayside due to low price per barrel we will see things return to an upward trend.”

Fracking is used by the big players as it requires a greater level of expertise.

I’m with Adolf – last time I looked US became a net exporter of energy for the 1st time in ages courtesy of shale oil. This isn’t economical for many producers below ~ $60 a barrel (or its energy equivalent in gas).

Though it’s compounded by simple laws of supply and demand in that demand isn’t keeping pace with supply due to poorer economic performance. As the US *might* be in a recovery – if it is then I would expect price to increase despite Opec.

@hj
“It could be a signal that high oil extraction costs are dampening the world economy?”

what??!!! where did you get that bit of logic from? Shale oil extraction costs are in real terms on a par with oil extraction costs from the 80s (inflation adjusted)

and even if greater that would increase price due to scarcity
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January 7, 2015 3:27pm
hj

Americans are buying hybrid cars and electric vehicles, and manufacturers are engineering traditional gasoline engines to be more fuel-efficient. The average fuel efficiency of new cars in the US is at its highest level ever.

Fair enough. But that’s far from being a sufficient explanation for the demand destruction we’re witnessing, given that relatively few Americans are buying new cars these days. In fact, the biggest single component of contraction in US oil demand is drivers clocking fewer miles annually.
The past five years have seen the longest sustained period of non-growth of vehicle miles traveled (VMT) in US history. Why aren’t people driving more? Two words: gas prices. Incomes for most Americans haven’t improved in recent years, but gasoline prices are hovering near their highest level ever. Driving has gotten so expensive that attitudes toward automobiles are slowly changing, with many young people abandoning the very idea of car ownership.

However you look at the recent decline in petroleum demand, stratospheric oil prices are clearly implicated (it’s not just parsimony in miles driven; efforts to boost fuel efficiency are also largely motivated by gas pump sticker-shock).

But why are petroleum prices so high? Although some commentators are quick to blame oil companies or speculators, the main factor keeping the price of oil above $100 a barrel is supply. Yes, OPEC frequently reminds us that the oil market is “well supplied.” But that claim requires an addendum: the market is well supplied with $100 per barrel oil—which the economy can barely afford. If the oil price were to slip southward, back to historic levels (closer to $40 per barrel, adjusting for inflation), the number of barrels of petroleum available worldwide would quickly dwindle. That’s because the amount of oil that can be produced profitably at a low price (typically from onshore, conventional, vertical wells) has fallen in recent years. All new demand has been met with oil from marginal, expensive sources—tar sands, horizontally drilled and fracked tight oil wells, or deepwater wells. Producers need prices of $100 a barrel to justify investing in these operations. The oil industry has doubled its level of investment in production in recent years, and doubled the number of wells it drills annually, while taking on far more debt—just to grow total oil supply at an anemic rate.

So the correct framing of our situation is this: Falling production of conventional oil is pushing prices higher, and high prices are driving demand down. “Peak demand” is peak oil by another name—de-fanged and de-clawed.

http://www.resilience.org/stories/2013-09-19/peak-oil-demand-peak-oil
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January 7, 2015 3:31pm
hj

Shale oil extraction costs are in real terms on a par with oil extraction costs from the 80s (inflation adjusted)
….
🙄
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January 7, 2015 3:36pm
G152

Ever notice how when the barrel of oil goes up in price
overseas just how quickly the price of petrol here rises.
Even before a tanker full of the costlier oil can leave the port…

And how slowly the price of petrol tracks down with the present low oil prices..
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January 7, 2015 3:53pm
Hugh Pavletich

THE REAL POWER … THE POWER OF HUMAN INGENUITY … NOT PUFFED-UP PARASITIC POLITICIANS …

THANK YOU GEORGE P MITCHELL … CREATOR OF THE FRACKING INDUSTRY …

https://www.youtube.com/watch?v=pe9qAQZ1pp8
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January 7, 2015 3:56pm
All_on_Red

hj
In the 2014 year, roughly 54,973 plug-in electric and battery-electric vehicles have been sold in the United States.
Thats about 0.67 percent of the 8.1 million vehicles sold in 2014.
To be fair, the number if sales has increased.

Hugh, I did notice that clip the last five times you posted it…
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January 7, 2015 4:02pm
All_on_Red

Shawn Herles (6,848 comments) says:
January 7th, 2015 at 2:06 pm
Good for the West, bad for Russia.”

And Mexico, Venezuela , Canada, Norway, UK , the US shale industry.
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January 7, 2015 4:07pm
JMS

It’s especially good for those areas of NZ where there is competition.

Gull is not present in Wellington or the South Island.

The BP-Caltex-Z-Mobil cartel uses its profits from those areas to subsidise its business in the areas where the more efficient Gull operates.
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January 7, 2015 4:08pm
burt

I haven’t heard much about peak oil recently, apparently that was the only thing that was historically driving the price up ?
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January 7, 2015 4:09pm
EAD

@ Lindsay Addie 2.18pm

7 downticks for saying “Yeah I forgot to mention Key and friends, those noble guardians of free enterprise…..”

Either National Party Central has got it’s workers on overtime, or people on this blog don’t take any criticism of the Gnats at all well even if it is tongue in cheek or deadly accurate as your post is.

Back to the oil price – if you read just the NZ MSM, you will be reduced to talking points on oil such as “the oil price is great for consumers” without really getting the bigger picture. For a better perspective, turn to sites such as Zerohedge. Oil aside, how much of the NZ MSM has been covering the dramatic fall in the Baltic Dry Index which when combined with dropping crude, is the harbinger of a global downturn:

http://www.zerohedge.com/news/2015-01-05/jeff-gundlach-if-oil-drops-40-geopolitical-consequences-could-be-terrifying

http://www.zerohedge.com/news/2015-01-02/guest-post-oil-looming-canadian-housing-bubble-crash
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January 7, 2015 4:16pm
Shawn Herles

Russia has just lost the economic war with the west

The interest rate hike’s failure to halt a freefalling rouble means Russia is facing a perfect storm, only part of which is a full-blown currency crisis.

Russia is in even worse shape than Britain was in 1992. With a clapped-out manufacturing sector, it is too dependent on its massive stocks of oil and gas at a time when the price of oil is falling through the floor.

A barrel of Brent crude was trading at below $60(£38) a barrel at one point on Tuesday, compared with a recent peak of $115 in the summer.

The west knows all about the vulnerability of Russia’s economy, its creaking factories and its over-reliance on the energy sector. When the introduction of sanctions over Russia’s support for the separatists in Ukraine failed to bring Vladimir Putin to heel, the US and Saudi Arabia decided to hurt Russia by driving down oil prices. Both countries will face some collateral damage as a result – and this could be considerable in the case of the US shale sector – but both were prepared to take the risk on the grounds that Russia would suffer much more pain. This has proved to be true.

http://www.theguardian.com/business/2014/dec/16/russia-has-lost-economic-war-with-west-rouble-currency
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January 7, 2015 4:35pm
Redbaiter

7 downticks for saying “Yeah I forgot to mention Key and friends, those noble guardians of free enterprise…..”

This blog is almost as deeply infested with commies as The Standard.

Here’s another example-

The state has no moral superiority over the private sector. Far less in my humble opinion.
Vote: Thumb up 4 Thumb down 8

NZ sure is a long way down the commie shitter. Or maybe its just Kiwiblog. I hope so.
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January 7, 2015 4:43pm
big bruv

Toad….are you there?

Remember when you told me that oil would soon be $200 a barrel?
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January 7, 2015 5:15pm
All_on_Red

Shawn
The flawed narrative of critics claims that Russia is a renter state living exclusively out of windfall profits from oil & gas extraction. This claim is being backed up by the much trumpeted reference to the oil & gas exports figure, but the critics are hard‐pressed to come up with any other arguments to sustain their claim. Contrary to the widespread legend, the share of oil & gas and other natural resources (natural resources rents) in the Russian economy has actually dramacally decreased over the years from 2000 to 2012. According to World Bank data the share of natural resources rents in GDP (the sum of oil rents, natural gas rents, coal rents, mineralrents,andforestrents)morethanhalvedbetween2000to2012from44.5%to18.7%. Theactual share of oil & gas (net of other natural resources rents) was 16%.
We are told that oil & gas make up 70% of Russia’s exports. We are then fed the conclusion that Russia has not done anything to diversify its exports. But at the same time total exports have risen fivefold from 2000 to 2013, from $103 billion to $526 billion. Analysts have failed to notice that beneath the surface of “70% of oil & gas” there hides a staggering 250% growth of exports of goods other than oil & gas. In 2000, non‐oil & gas exports were worth $50.4 billion but as of 2013 they had grown to $176 billion.
Russia has almost doubled automotive ve production (private cars, trucks and buses) from 2003 when it produced 1,279,000 cars, to 2013 with production of 2,175,000 cars. In addition, some 900,000 cars were imported into Russia.
This represents not only a quantative growth of cars produced but a total revamp of the sector. Gone are all the classic Soviet models as Russian producers have also updated their models and producon processes to meet the high international standards. Russia has been successful in renewing its automotive industry by attracting major international car producers to manufacture in Russia. Over half of the domestically produced cars in Russia are foreign brands manufactured by Russian‐ and foreign‐owned plants. The number of domestically assembled foreign cars sold in Russia increased from 290,000 (vs. 750,000 imported cars) in 2007 to 1,220,000 (970,000 imported) in 2012 (source: Association of European Businesses).

Shawn, I could go on-basically The Guardian doesn’t know shit about Russia.
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January 7, 2015 5:22pm
HC

So has anyone here ever heard of global climate change, CO2 emissions playing a role in it, same as other greenhouse gases? Compared to many other places, except perhaps in the US, some gulf states and subsidising developing countries, petrol and diesel are still comparatively cheap here, and are getting cheaper now.

That may please the petrol headed drivers, and of course truckies and so having a more justified reasons to use their vehicles, but the loss in incomes for petroleum exporting countries will have damaging economic effects not that beneficial to NZ and other countries. Also will it not “help” our climate and the needed change to renewables and other alternative energy sources.

Get ready for the economic crisis in Russia and the Middle East to lead to some serious consequences, more tensions and unrest, and wars, as they are already on the brink. Add Nigeria, and its volatile northern regions.
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January 7, 2015 5:31pm
HC

I think it is not a “coincidence” that we have this glut of oil and gas hit the market. There may be some strategies being used by the US, now heavily producing shale oil and gas, and Saudi Arabia, to deal to their arch enemies, Russia and Iran, and hit their economies at the heart.

Saudi Arabia can see this through, having ample reserves, and at present the US can also live with cheaper oil and gas, although it will harm their petroleum sector, as for the rest it helps their so fossil focused economy to get traction, with a price of course.

There are greater things at play than just some over supply happening.
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January 7, 2015 5:38pm
All_on_Red

HC
“So has anyone here ever heard of global climate change, CO2 emissions playing a role in it, same as other greenhouse gases? ”
No never, do tell us more.
I’d be interested to know what % of global CO2 emissions that mankind actually emits.
3%, 15%,25%,50%,65% or what?
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January 7, 2015 5:38pm
itstricky

Toad….are you there?
Remember when you told me that oil would soon be $200 a barrel?

Thank god your gloating has caused oil to suddenly become a renewable resource. Now we can all sleep easy, greenies and non greenies alike
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January 7, 2015 5:38pm
HC

‘All_on_Red’ – perhaps a bit of scientific reading and study tonight?

http://www.ipcc.ch/report/ar5/

http://www.ipcc.ch/

As for the rest of the story behind these developments, where is the “functioning market”? Should producers not halt production and cause the price to rise again? It will happen eventually, but should really already happen now, on a large scale, if this is all due to pure market mechanisms.
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January 7, 2015 5:51pm
All_on_Red

Thanks HC
A bit busy tonight. How about just giving me the %? Do you know?
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January 7, 2015 5:54pm
Hugh Pavletich

All – in – Red … You are correct in stating I have posted the George P Mitchell clip before.

However I think it important the massive contributions of this outstanding entrepreneur is more widely and better understood.

There are very big lessons here.

I hope Kiwiblog readers draw this important post by David Farrar … OIL PRICES LAST FIVE YEARS (with the comments of course) to others attention.

Note that Mitchell was the creator of the massive environmental development THE WOODLANDS, Houston, Texas ( which I have visited while studying housing in Houston back in 2008 ) as well …

http://en.wikipedia.org/wiki/The_Woodlands,_Texas

The Best Place to Live In Houston | The Woodlands Story – YouTube

https://www.youtube.com/watch?v=imqWdNQOWGw
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January 7, 2015 6:22pm
Scott1

I wonder if Putin is busy spending up all his not unlimited reserves trying to defend the rouble at about its current level.
Maybe he will need to adjust his target down a bit if the oil prices keep low…
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January 7, 2015 6:28pm
All_on_Red

Thanks Hugh,
I have always agreed with your views on how ludicrous the Smart Growth policies have been but would suggest that constant spamming by repeating the same thing over and over ( by hj too) has a negative effect on you getting the message across. I reckon most of us get it and agree with you. Release more land and feed the demand.
See, your post above just got down ticks ( not me)
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January 7, 2015 6:31pm
HC

All_on_Red, 05.54 pm: You cannot simply have one simple percentage figure to be set for sole human emissions, as the additional human caused emissions create an additional, significant emission amount causing natural imbalance. There is some kind of balance between oceans, forests and so, but the extra human emissions are the real worry. The matter is a complex one, and scientists have analysed it well. More on this may be more easily found here:
http://en.wikipedia.org/wiki/Global_warming
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January 7, 2015 6:56pm
Hugh Pavletich

All – in – Red … Bear in mind I have been involved with these broad issues (local government performance / housing ) as an advocate, since initiating the Demographia International Housing Affordability Survey in late 2004 … involving around 30,000 hours of voluntary time ( refer my archival website http://www.PerformanceUrbanPlanning.org ).

Getting progress in politics sure is a glacial process !

Bear in mind the current National led Government was supposed to get on to these local government / housing issues out of the starting blocks following the 2008 election (as promised) … refer article late 2012 … HOUSING: MR KEY – GET ON THE PROGRAMME …

http://www.scoop.co.nz/stories/HL1212/S00041/housing-mr-key-get-on-the-programme.htm

… and note too … the noble intentions of Prime Minister Key early 2009 as reported in the Wall Street Journal … YOU CANT SPEND YOUR WAY OUT OF A CRISIS …

http://www.wsj.com/articles/SB123638162497057661

Instead since the 08 election the housing market has bubbled out from a Total Value of about $500 billion … now some $700 billion … and we STILL have not seen any new affordable housing being built ! … refer Andrew Atkin THE REAL DEAL …

http://andrewatkin.blogspot.co.nz/2013/03/the-real-deal-housing-in-new-zealand.html

When do you expect the politicians to deliver ? That’s what we all want to know.
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January 7, 2015 7:00pm
HC

All_on_Red, a bit more to “study”, as I know you like to learn and be enlightened:

http://www.pnas.org/content/106/6/1704.short
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January 7, 2015 7:08pm
PaulL

I’d love to believe that the US were capable of co-ordinating a reduction in oil price so as to drive Venezuela, Russia and Iran to the wall. But I think a far more likely explanation is the usual one of incompetence.

Last time OPEC tried to hold up the oil price all the members other than the Saudis cheated on their quota. So the Saudis took a bit of a beating, and everyone else reaped the benefits. This time, they weren’t sure OPEC could do it on their own, and they weren’t prepared to do all the work on their own. The Russians said no, and the Venezuelans and Mexicans said not without the Russians. So the Saudis said “screw you,” and their top negotiator went on holiday.

The Saudis are sitting back and seeing how long the Russians will put up with it before them come back to the table, and discuss actually accepting some cuts themselves. I expect it won’t take all that long. Don’t get used to the low oil prices.
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January 7, 2015 7:14pm
All_on_Red

HC
It’s about 3.4%
The Solomon Paper is vague. Notably she has excluded a whole set of data from AR 5 WG1
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January 7, 2015 7:19pm
All_on_Red

And yes I realise she is the Chair of WG1 which makes the omission puzzling. Doesn’t suit her agenda maybe huh.
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January 7, 2015 7:27pm
HC

PaulL You may know that OPEC has nowadays only about 40 percent of the oil market under their control. Russia, Mexico and a few other nations tried to gain by not following OPEC for many years, sometimes successfully, sometimes less so. Yes, the loss of the Cartel to keep some control on pricing has led to more competitions. But in the end, once it is cut throat competition, nobody will win. I still believe there are some greater powers at work, such as increased self sufficiency by the US and the Saudis playing the market, also for strategic reasons. The Saudis are probably the most powerful oil producing nation, pulling some strings.
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January 7, 2015 7:33pm
HC

All_on_Red, so you read AR5 then?! That will tell you more.
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January 7, 2015 7:35pm
All_on_Red

The Residence Time for Anthropogenic CO2 is now estimated at 5- 16 years not 200 plus. The science moves on eh.
Yes, have read it all and other Papers too.
“In a paper recently published in the international peer-reviewed journal Energy & Fuels, Dr. Robert H. Essenhigh (2009), Professor of Energy Conversion at The Ohio State University, addresses the residence time (RT) of anthropogenic CO2 in the air. He finds that the RT for bulk atmospheric CO2, the molecule 12CO2, is ~5 years, in good agreement with other cited sources (Segalstad, 1998), while the RT for the trace molecule 14CO2 is ~16 years. Both of these residence times are much shorter than what is claimed by the IPCC. The rising concentration of atmospheric CO2 in the last century is not consistent with supply from anthropogenic sources. Such anthropogenic sources account for less than 5% of the present atmosphere, compared to the major input/output from natural sources (~95%). Hence, anthropogenic CO2 is too small to be a significant or relevant factor in the global warming process, particularly when comparing with the far more potent greenhouse gas water vapor. The rising atmospheric CO2 is the outcome of rising temperature rather than vice versa. Correspondingly, Dr. Essenhigh concludes that the politically driven target of capture and sequestration of carbon from combustion sources would be a major and pointless waste of physical and financial resources.”
http://www.co2science.org/articles/V12/N31/EDIT.php

It was rather odd of Solomon to ignore data on actual measurement of specific areas of our climate. Funnily enough Insects emit a huge amount- far more than us. There’s been a new Satellite launched which measures the source of CO2. Have to go out so don’t have time to link but it’s pretty much all coming from Equatorial forests
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January 7, 2015 7:38pm
HC

Differing views and reports there are, All_on_Red:

http://quantpalaeo.wordpress.com/2013/09/20/bad-paper-bingo-with-the-nipcc-carbon-cycle/

http://www.nature.com/nclimate/journal/v2/n1/abs/nclimate1332.html

There are the usual climate change deniers as Essenhigh

http://www.opr.ca.gov/s_commondenierarguments.php
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January 7, 2015 7:59pm
PaulL

@HC: exactly. OPEC can’t act on their own. Last time they acted to hold up oil prices, the result was (somewhat) the emergence of new forms of supply. My understanding is that the fracking practitioners have been making money hand over fist at $100. They’ve focused on drilling new wells, not reducing their costs. Now the prices have dropped, they will stop capital investment (drilling new wells). They’ll keep pumping from existing wells, because the marginal cost to run them once drilled is very low. But also, they have a lot of opportunity to reduce costs – they just haven’t had a need to. Give it a few months (maybe 18), it’ll turn out they can make money at the current price. That’ll annoy OPEC even more.
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January 7, 2015 8:05pm
hj

Oil price rises appear to be followed by recession. If the price rises are due to oil being expensive (and that is due to resources needed to extract it) then that is peak oil. Technology has it’s limits (as demonstrated so far).
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January 7, 2015 9:06pm
hj

I didn’t see no people of colour at Woodlands Hugh?
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January 7, 2015 9:16pm
Hugh Pavletich

Would you like a lower ( not reasonably ) priced palace on Moscow’s outskirts ?

Russian oligarch’s are getting more “flexible” … the UK Daily Mail reports …

Palaces owned by Russian oligarchs begin to appear for sale for £70m | Daily Mail Online

http://www.dailymail.co.uk/news/article-2897053/Has-collapse-Russian-economy-finally-hit-super-rich-Sumptuous-palaces-owned-oligarchs-begin-appear-Moscow-s-property-market-70million.html

Tougher for those further down the food chain in Russia … check the supermarket shelves photos at the bottom of the article.
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January 7, 2015 9:16pm
hj

THE REAL POWER … THE POWER OF HUMAN INGENUITY … NOT PUFFED-UP PARASITIC POLITICIANS …

THANK YOU GEORGE P MITCHELL … CREATOR OF THE FRACKING INDUSTRY
….
No points. The total available energy isn’t the issue it is the total of all the resources used inproduction (and fraking requires more). Therefore in real terms is more expensive. A lot of contributors to GDP will not be worth it at a higher production cost.
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January 7, 2015 9:26pm
Hugh Pavletich

hj @ 9.16 … Following the massive New Orleans Hurricane Katrina disaster, Houston took in some 150 – 250,000 New Orleans refugees. Houston was the major destination for them. It is not known how many stayed.

Some 6 years later CNN reported … KATRINA EVACUEES SHIFT HOUSTON’S IDENTITY …

http://www.cnn.com/2011/US/08/12/katrina.houston/

I was in Houston in 2008 … and wrote about the place sometime later for Interest Co NZ … HOUSTON: WE HAVE A (HOUSING AFFORDABILITY) PROBLEM …

http://www.interest.co.nz/news/49029/opinion-houston-we-have-housing-affordability-problem

I see the Greater Houston Area’s population is now about 6.6 million people. There are an estimated 90 languages spoken in the place. Talk about diversity !

What particularly struck me was the tolerance … and the genuine willingness to help others, particularly the less fortunate. The CNN article above provides an inkling of that as well.
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January 7, 2015 9:52pm
V

How much of the shale industry relies on junk bonds for funding?
How quickly do shale oil wells deplete thus requiring a new well to be drilled (capital intensive)?
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January 7, 2015 10:08pm
rangitoto

Shale oil is mined not drilled like an oil well. Usually open cast mines and processed in above ground retorts though it is possible to do the processing in situ. The green river formation in the US has vast reserves of the stuff.
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January 7, 2015 10:23pm
UrbanNeocolonialist

$53/barrel is about USD $0.30 per litre. So where are the other $1.60/litre in NZ going?
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January 8, 2015 12:01am
Hugh Pavletich

How $50 Oil Changes Almost Everything – Yahoo Finance

http://finance.yahoo.com/news/50-oil-changes-almost-everything-050023682.html

… extract …

The biggest collapse in energy prices since the 2008 global recession is shifting wealth and power from autocratic petro-states to industrialized consumers, which could make the world safer, according to a Berenberg Bank AG report. Surging U.S. shale supply, weakening Asian and European demand and a stronger dollar are pushing oil past threshold after threshold to a five-and-half-year low, with a dip below $40 a barrel “not out of the question,” said Rob Haworth, a Seattle-based senior investment strategist at U.S. Bank Wealth Management, which oversees about $120 billion.

“Oil prices are the big story for 2015,” said Kenneth Rogoff, a Harvard University economics professor. “They are a once-in-a-generation shock and will have huge reverberations.” … read more via hyperlink above …
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January 8, 2015 1:52am
ben

Is it possible the Greens oppose fracking and shale oil extraction precisely because those technologies cause peak oil to be refuted?
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January 8, 2015 12:42pm
ben

The BP-Caltex-Z-Mobil cartel uses its profits from those areas to subsidise its business in the areas where the more efficient Gull operates.

What’s the point? If you’re right then they can exit unprofitable areas and pocket the subsidy. Except you’re not right of course.
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January 8, 2015 12:48pm

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