In These New Times

A new paradigm for a post-imperial world

Posts Tagged ‘oil price war’

UK’s oil industry close to collapse

Posted by seumasach on December 18, 2014

PressTV

18th December, 2014

A senior British energy official says the UK’s oil industry is “close to collapse” due to a recent dramatic fall in crude prices.

“It’s close to collapse. In terms of new investments – there will be none, everyone is retreating, people are being laid off at most companies this week and in the coming weeks,” said Robin Allan, the chairman of the independent explorers’ association Brindex.

He added that the plunge in oil prices pushed the industry into “crisis” and oil companies are cutting staff and investment to save money.

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OPEC in price war with US oil producers

Posted by seumasach on November 30, 2014

“In essence, the OPEC (Saudi) has decided to let the price fall to a point that the newest high-cost drilling projects in the US will find it uneconomical to continue production and will be forced to shut down. “

We are seeing classic end of empire scenario in which the imperial centre struggles to control the periphery. It’s a struggle that is being lost as Saudi Arabia, a critical US ally and fulcrum of the petrodollar system breaks, loose and follows an independent policy. These are dramatic developments which can only heighten the present sense of drift and lack of political leadership in the USA and throughout the West. On the other hand there is no sign of the demonization of the Saudis which one might expect in these circumstances. Is that because they hold the whip hand or is the oil crisis the trigger for the next phase of the financial crisis whose imminence David Cameron has recently announced, a financial crisis that could be utterly transformative in terms of the relationship between the West with the rest?

M.K.Bhadrakumar

Indian Punchline

The meeting of the Organization of Petroleum Exporting Countries [OPEC] in Vienna on Thursday has been a watershed event in the ebb and flow of energy politics. It took a momentous decision at the bidding of Saudi Arabia that there shall be no cut in oil production to counter the steep drop in oil prices. There were dissenting voices but Saudis call the shots within the OPEC.

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