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Yes, the squandering of generations of oil revenue to pay for the dismantling of industries in Scotland without adequate replacement really is a winning argument against Scotland having control of her own resources.

ETA - it's strange how Norway seems to cope pretty well with the volatility of oil prices despite the absence of the broad shoulders of the UK.

Not sure folk in Stavanger would agree with you right now.

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Not sure folk in Stavanger would agree with you right now.

The industry will no doubt suffer a bit (Stavanger is Norway's 'Aberdeen' I think?), but I was referring more to the general state of the economy, as compared to the UK's.

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To me it seems there is something much larger at play here,,, people are going on about the Saudis going after the fraking but that doesn't add up as they are so much in deficit, even if they do get the rig count down on the fracking front it will only be temporary,,, when the price of oil rises then so will the rig count of the mobile fracking facilities...could it be the Americans are in fact going after the suadis? Maybe they have too much power for their liking!! And as a bonus it wrecks the Russian economy in the process

I think the Saudi's idea is to create a situation where nobody will invest in higher extraction cost projects (which fracking seems to be) because the investment could be undercut by SA boosting production and thus dropping the price. It does seem strange though that SA would prefer to maintain market share rather than get as much as possible for their resource. Surely getting half the market share at double the price would make more sense? That way their oil would last longer and the total income would eventually be double. Especially as they have about the lowest cost per barrel to produce the oil. not sure why they don't just cut production at which point oil prices will rise again fairly quickly.

It could be that SA wants to make it near-impossible for Iran to get their oil industry up and running again by keeping prices low. They seem to hate Iran with a passion and I wonder if it's religious considerations that are driving SA's apparent deathwish. That could explain their illogical approach - much like it's difficult to fight an enemy such as IS where they actually quite like getting killed.

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$29.46 dollars a barrel now. So down another 10% in a week.

I read that there is no storage space available and they are still producing more than is being used. Price will just keep falling until some people go bankrupt and stop producing oil.

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$29.46 dollars a barrel now. So down another 10% in a week.

I read that there is no storage space available and they are still producing more than is being used. Price will just keep falling until some people go bankrupt and stop producing oil.

I heard on channel 4 news this week that its the first time since 2004 that it's been less than 30 dollars a barrel. What was the response back then? Was there as much of a furore as there is now.

The reason I ask is that given what I have heard and the language used from different media outlets, I was under the impression that we were in uncharted territory here regarding the price of a barrel, when in fact we have been here before.

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I remember when i was serving my apprenticeship about 15 Years ago a senior member of staff told me that the yanks were using the low oil price to buy up millions on barrels of oil to then reinject it into their oil well for when the price rose again,,,, im guessing that was bull sh#t but it had always stayed in the back of my mind there may have been truth in it

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There was not the panic that there is at the moment, the panic is not only in the uk so we cant blame the media for any hidden agendas,,, the arse seems to have fallen out of the oil companies maybe theres more to it we dont see or maybe the oil campanies have invested and taken on debt with the the projection of higher oil prices

I heard on channel 4 news this week that its the first time since 2004 that it's been less than 30 dollars a barrel. What was the response back then? Was there as much of a furore as there is now.

The reason I ask is that given what I have heard and the language used from different media outlets, I was under the impression that we were in uncharted territory here regarding the price of a barrel, when in fact we have been here before.

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I read that it was under $30 a barrel for a couple of decades preceding 2004 , it's only recently it's went so high.

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I read that it was under $30 a barrel for a couple of decades preceding 2004 , it's only recently it's went so high.

Very true my old boss in the oil industry had a sign on his desk for years saying Please God let there be another oil boom and I promise to not piss it away this time" or something like that.

http://chartsbin.com/view/oau

That graph must be an average or something as it was down to $6 a barrel in the 80's I believe.

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That graph must be an average or something as it was down to $6 a barrel in the 80's I believe.

Is that an "adjusted for inflation" price?

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Oil had an adjusted for inflation price of $18 as recently as 1998. Historically the average is about $25-$30. We had a blip of high oil prices in the 70s oil crisis, and then another one from about 2005 -2014. I think it's interesting that in the 70s it was portrayed as a crisis because oil prices were high and now it's a "crisis" because oil prices are perceived to be "low".

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With Iranian crude sanctions lifted a day or two ago the price is now below $28.

For the Iranians this will seem like Christmas. :wink2: $28 a barrel compared to years of not being able to sell.

Whereas for the rest grown used to $100+ for years they have grown fat and costly.

Bad times ahead for Aberdeen for the foreseeable it looks like.

Edited by thplinth

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Yon Vanessa was standing in for Jeremy Vine today and was on the blower to folks from Aberdeen currently struggling with the downturn.

Pretty tough to listen to, a lot of people in a bad way, no job prospects, savings gone, facing eviction. Not nice at all...

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Yon Vanessa was standing in for Jeremy Vine today and was on the blower to folks from Aberdeen currently struggling with the downturn.

Pretty tough to listen to, a lot of people in a bad way, no job prospects, savings gone, facing eviction. Not nice at all...

Surley folk that work in oil make a decent amount and therefore should have had the sense to save some of it?

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You do realise that different people have different expenses, if you have been safe in your job for years and make a good loving then the chances are that you will be confident to borrow in line with your salery,so you cant just presume that people in good paying jobs have money saved,,,as someone who works in the industry it is horrible to sit and watch people lose their jobs with the worry which goes a long with it, i know a lad who bought a house in october for 300k + only for him to be told hes getting paid off at the start of the year,, im gutted for him

Surley folk that work in oil make a decent amount and therefore should have had the sense to save some of it?

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Anyone mind all the folk all over the web going on and on about "Peak Oil" a while ago. Gone a bit quiet now.

Is there any chance oil creation is (also) abiotic? Seems odd how they just keep finding more and more of it despite the fact we are consuming it like never before. We were supposed to have run out by now yet here we are in a glut.

Edited by thplinth

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Was it someone on here who raised the question how come we faced a world economic crisis when OPEC jacked up the price of oil but now again when it falls back down? Make your fecking minds up.

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You do realise that different people have different expenses, if you have been safe in your job for years and make a good loving then the chances are that you will be confident to borrow in line with your salery,so you cant just presume that people in good paying jobs have money saved,,,as someone who works in the industry it is horrible to sit and watch people lose their jobs with the worry which goes a long with it, i know a lad who bought a house in october for 300k + only for him to be told hes getting paid off at the start of the year,, im gutted for him

Are there really people working in that industry who didnt realise it was a volatile commodity? Being FINITE and all? Seriously? Does nobody wonder why they're getting paid over the odds for what they do?

I'm sorry for those people, it must be a horrible situation to be in, but it wasn't impossible to imagine.

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Anyone mind all the folk all over the web going on and on about "Peak Oil" a while ago. Gone a bit quiet now.

Is there any chance oil creation is (also) abiotic? Seems odd how they just keep finding more and more of it despite the fact we are consuming it like never before. We were supposed to have run out by now yet here we are in a glut.

Not that much of the new resources are unknown. They're now economically recoverable due to new technologies.

Abiotic oil is another pseudoscience argument pushed by creationists / neocons. Can you explain any rational mechanism by which it would work? Without being wishy washy.

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