Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (4284)	4/25/2002 7:35:46 PM
From: frankw1900	Read Replies (1) \| Respond to of 24758

Hard to challenge you when I tend to agree. Bush should tell Abdullah to stick it in his ear and get on with doing down Hussein - that's where to start the "crusade." Iranians be of two minds about it, Russians be more likely to get paid money they're owed and who cares what the others think - they already say the US is their mortal enemy and act on it, so why not take them at their word? This week however, the countries around the Capian basin failed to agree on how to divvy up the oil. They apparently won't be meeting again for a year. Complicated political scene there now the USSR doesn't exist. But that's more years out than applicable to the next few months, I think. It's the Russian end you have to look at. Can they pump enough to make up for the Saudi production? These guys seem to think so and they think the Russian have a big advantage in a price war. foreignaffairs.org The cost structure of the Russian energy industry is a significant factor in the equation. As long as costs are largely ruble-denominated and the ruble is stable, Russian industry is protected from low oil prices, while capital investment flows are sheltered from price volatility. For the Russian government, the situation is more complex, but Russia is also more sheltered from low oil prices than are other exporting countries. Like OPEC exporters, it depends on revenues from export taxes. But unlike OPEC countries, it also takes in significant revenue from domestic sales and from taxes on huge natural gas exports to Europe. Thus the major question is whether Saudi Arabia can afford a sustained price war to block Russian and cis oil development. That feat might require oil at $10 a barrel for two years or more -- a situation as frightening for Riyadh as it is for other OPEC countries.