Cartoon of the Day

Credit:  SonovaMin

Credit: SonovaMin

 


THANK YOU for being a subscriber. Because of you Whaleoil is going from strength to strength. It is a little known fact that Whaleoil subscribers are better in bed, good looking and highly intelligent. Sometimes all at once! Please Click Here Now to subscribe to an ad-free Whaleoil.

  • This price drop is likely to be politically motivated, to deprive ISS of oil revenue. None of the nations surrounding Iraq are particularly fond of ISIS and most of them are members of OPEC, so a co-ordinated financial strike is possible. As the cartoon suggests, this will hurt oil shale, oil sands & deep sea oil producers hardest and going to scrap the US’s goal of energy independance.

    • R&BAvenger
      • El Diablo

        Good links, thanks.

        It seems to mostly come down to the fact that the Saudis see the threat from fracking as very serious to their economy and have made the decision to not cut production. This creates excess supply and inevitably lowers the price. The benefits to the Saudis are that they maintain their market share while potentially putting the frackers out of business. Will be interesting to see how it plays out. It sure is great to see OPEC having to face some real competition.

    • John1234

      America has energy independence already – they just don’t choose to use it while cheaper energy is available.

      I don’t believe that politics matters. It is simply increased supply and reduced demand at play. Outside of a few despot states politicians can’t really control it.

      • Until they are using it, until the capital plant is in place to do so, they aren’t.
        And if you think the majority of oil exports aren’t politically controled, just look at OPEC membership, then tell me that the majority of oil exports aren’t politically controled

        • John1234

          Saudi are the only ones to a major degree. Did you not read my comment re ‘despots’?

          • I did read your comment, i just looked at the members of OPEC. 12 Members
            Algeria- Authoritarian Regime according to the Decocratic index
            Angola-Authoritarian Regime according to the Decocratic index
            Ecuador-Is considered a hybrid regime between authoritarian and democratic
            Iran-Authoritarian Regime according to the Decocratic index
            Iraq-Warzone against ISIS, with a potentially authoritarian leader in the non ISIS sections
            Kuwait-Authoritarian Regime according to the Decocratic index
            Libya-is considered a hybrid regime between authoritarian and democratic.
            Nigeria-Authoritarian Regime according to the Decocratic index
            Qatar-Authoritarian Regime according to the Decocratic index
            Saudi Arabia-Authoritarian Regime according to the Decocratic index
            UAE-Authoritarian Regime according to the Decocratic index
            Venezuella-is considered a hybrid regime between authoritarian and democratic.

            You might as well rename OPEC membership the Despotic Authoritarian Coalition

  • Andy

    The UK oil industry is being hit pretty hard. Chevron in Aberdeen is laying off 23% of its staff, other companies are doing similar. A friend who is a long-time subsea engineer just took a 10% pay cut to his day rate.

  • timemagazine

    Hard times for Putin, the crazy mullahs from Iran and the Marxist leadership in Venezuela.

  • Jimmie

    Am I going crazy or can’t Fairfax reporter Hamish McNicol can’t count?

    He says in his article that petrol prices have dropped 20 cents in the last two months surpassing the last record petrol drop of 50 cents in 2008.

    When since has 20 cents been a bigger drop than 50 cents?

    I watched Alice in Wonderland the other night – I’m sure Mr McNicol must have as well.

    http://www.stuff.co.nz/business/industries/64194343/Petrol-price-slide-continues

  • Never in the dark…..

    It seemed to me that for every dollar the oil barrel price went up, our petrol went up 2c/l. I noticed it hasn’t been coming down at quite the same rate. Or is it just me being a little confused?

33%