Russian oil industry facing deep freeze

bbc.com ^ | 27 November 2014 | Olga Ivshina

[Berlin_Freeper]

Without visiting a well in Western Siberia, you would never realise just how hard it is to extract oil in Russia.

Two hours' drive from the nearest village of Salym, the snow banks are huge and the closest airport is over 300km (185 miles) away.

The temperature is down to -26C, but locals say winter temperatures normally drop to -40C, and Russia's oil industry has more serious challenges than the cold.

[nathanbedford]

The danger in this situation, of course, is that low oil prices will drive Russia into a military as well is an economic alliance with China. Certainly the two will form a much closer relationship and overcome much of their historic mistrust.

The real question for the West is, wither Germany? Will Germany seek to align itself with these two powers and form a very dangerous axis. First, there is a huge percentage of Germans who agree with Barack Obama, the influence of the United States should be severely undercut and they would not only welcome but agitate for such a realignment.

Germany is an anomaly, a country which prides itself on reason but indulges conspiracy theories, like the idea that the World Trade Center was blown up by the CIA entertained by a shocking percentage of Germans.

The vacuum in leadership from America only encourages our enemies and discourages our friends and makes this realignment more likely.

The good news, America has contrived to reduce the worldwide price of oil in the teeth of bitter opposition from the administration forcing Russia on a course for reckoning. The bad news, the slump in the price of oil might be reflective of more than sanctions and increased supply due to fracking, it might well reflect a worldwide slowdown in the economy.

[wetphoenix]

~The danger in this situation, of course, is that low oil prices will drive Russia into a military as well is an economic alliance with China. Certainly the two will form a much closer relationship and overcome much of their historic mistrust.~

It happens as we speak. Not a good deal for Russia at all. Smells like Molotov-Ribbentrop all over again. But we have to admit there are few choices for Russia, just like the first time.

[SeeSharp]

The good news, America has contrived to reduce the worldwide price of oil

What do you mean by "America". The American government, Barack Obama, contrived to raise the price of oil. It was the free market that drove the price down despite the government's efforts.

[nathanbedford]

You take me to task as follows:

What do you mean by "America". The American government, Barack Obama, contrived to raise the price of oil. It was the free market that drove the price down despite the government's efforts.

Come on, fair comment requires that you at least quote the whole sense and preserve the context. Here is the whole quote and the context:

The good news, America has contrived to reduce the worldwide price of oil in the teeth of bitter opposition from the administration forcing Russia on a course for reckoning.

[SeeSharp]

...in the teeth of bitter opposition from the administration

Mea culpa. It's early.

[nathanbedford]

NO prob.

By the way, it is noon here in Germany.

Happy Black Friday.

[armydawg505]

American oil independence is the way to destroy Putin without firing a shot. Obama knows that and it is the basis of his resistance to energy independence. Anything that puts America in a strong position on the world stage is not something he will do.

[shove_it]

There was discussion on CNBC’s Sqawk on the Street this AM about Russia joining joining OPEC and what to name the new cartel. Somebody suggested ROPEC. Becky Quick said: “That’s better than OPRCR” (pronounced ‘Opecker’). Cracked me up, everybody on set amazinly stifled it.

[Moltke]

the idea that the World Trade Center was blown up by the CIA entertained by a shocking percentage of Germans.

I'd consider even 1% shocking. At what level does shock set in for you?