Posted on 04/17/2014 7:34:50 AM PDT by kronos77
Opportunities for the West to hurt the Russian economy are limited, President Vladimir Putin said Thursday. Europe cannot stop buying Russian gas without inflicting pain on itself, and if the US tries to lower oil prices, the dollar will suffer.
If the West tries to damage Russia’s influence in the world energy market, efforts will likely backfire, the Russian President said during his twelfth annual televised question and answer session.
To really influence the world oil market a country would need to increase production and cut prices, which currently only Saudi Arabia could afford, Putin said.
The president added he didn’t expect Saudi Arabia, which has “very kind relations” with Russia, will choose to cut prices, that could also damage its own economy.
If world oil production increases, the price could go down to about $85 per barrel. “For us the price fall from $90 to $85 per barrel isn’t critical,” Putin said, adding that for Saudi Arabia it would be more sensitive.
Also the President said that being an OPEC member, Saudi Arabia would need to coordinate its action with the organization, which “is very complicated.”
Meanwhile, Russia supplies about a third of Europe's energy needs, said Putin. Finland, for example, is close to Russia economically, as it receives 70 percent of its gas from Russia.
“Can Europe stop buying Russian gas? I think it's impossible…Will they make themselves bleed? That's hard to imagine,” the Russian president said.
Since oil is sold internationally on global markets cutting the price would mean lower dollar circulation, diminishing its value in the global currency market.
"If prices decrease in the global market, the emerging shale industry will die,” Putin said.
The US shale industry has boosted domestic production, helping the US become independent and situating it to overtake Russia as a producer.
Russia’s economy largely relies on energy. In 2013 more than 50 percent of the national budget was funded by gas and oil revenues. The main revenue comes from oil, as last year, oil revenues reached $191 billion, and gas $28 billion.
“Oil and gas revenues are a big contribution to the Russian budget, a big part for us when we decide on our government programs, and of course, meeting our social obligations,” the president said.
USA will bleed green form selling oil.
Germany’s in the process of (a) shutting down all their coal-fired generators, and (b) dismantling all their nuclear power plants.
No, Obama’s Anti-Energy, Anti-Industial, Anti-Capitalist, policies are what will cause “the West to Bleed”!!!
Joke’s on you, Vlad.
Janet Yellen is already destroying the dollar. Squashing your oil profits can’t hurt us there.
Russia has deliberately structured it’s economy to resist foreign pressure staring about 15 years ago.
Putin is feeling his oats.
Mr. Putin is whistling past the graveyard. Oil prices are now disconnected from physical supply and demand and are entirely a function of bloated futures trading on the NYMEX. Indeed, world crude stocks and supply are more than adequate for needs and the world is effectively awash in oil. A simple signal from Washington to the hedge funds and other unknown buyers who have propped up the NYMEX contract could tank oil quickly to $50 or less, as happened when the Russians invaded Georgia in 2008. Yes, US upstream companies would suffer. But the US would get a cold and Russia would get pneumonia. Oil-importing China would breathe desire — for a while.
Russia needs the money too much. They can supply China but Europe will just find other sources. Then Putin loses his customer base and he is reduced to dealing with China. And China plays hardball.
"And that's how we get rid of Moose and Squirrel."
Make that “breathe easier.” Darn spellcheck.
Since oil is sold internationally on global markets cutting the price would mean lower dollar circulation, diminishing its value in the global currency market. "If prices decrease in the global market, the emerging shale industry will die,” Putin said.IOW, like all Marxist thugs, Pooty-Poot doesn't know what he's talking about when it comes to the market economy, AKA the economy of the world.
Sarah et al were right, drill, drill, drill and we wouldn’t be in this mess.
We need to drill for oil, build refineries and frack for gas. Also, build some nuke plants and energy costs could go down significantly.
Meanwhile, Poland is increasing her Fracking capabilities.
Since Germany is shutting its nuclear power plants irrationally, one must conclude that being dependent on Russian natural gas imports is their desired goal.
Essentially, Germany is switching sides.
USA has biggest oil reserves in the world.
Especially the best kind for refining, light sweet crude.
USA will be the biggest producer of oil.
Uh, no. Fewer dollars in circulation means the dollar is higher against other currencies.
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