Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Ernest_at_the_Beach; ckilmer
I'm sure a lot of us have given some thoughts on what direction
Russia would turn once the US really started to get back into
the oil and gas production business.


7 posted on 05/28/2013 1:02:52 PM PDT by Marine_Uncle (Galt level is not far away......)
[ Post Reply | Private Reply | To 3 | View Replies ]


To: Marine_Uncle; Ernest_at_the_Beach

US fracking techniques have basically given Russia an unlimited supply of oil. They have some shale oil deposits in Siberia that dwarf anything in the USA. (Same goes with the Chinese and shale gas. They have even larger deposits of shale gas than the USA.)

imho the world is going to go from tightly balanced supply and demand for oil/gas to a glut in 10 years or less. That will put downward pressure on hydrocarbons everywhere. Lower energy prices will be pure oxygen on the world economy. So even as the oil/gas patch loses profits from lower prices the rest of the world economy will grow like crazy — driving demand for energy UP and prices up again. Its about a 20 year cycle.

This is the way it has always worked since the dawn of the oil age.

The best way to be positioned for this kind of dynamic cycle is to have a very diverse economy so when energy prices decline the rest of the economy can improve.


8 posted on 05/28/2013 2:29:23 PM PDT by ckilmer
[ Post Reply | Private Reply | To 7 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson