Posted on 03/15/2016 5:32:46 PM PDT by bananaman22
According to a March 11 Bloomberg article, the Russian government is considering changes in the tax regime for the Russian oil and gas industry in order to bolster government revenues.
Should Vladimir Putin consider nationalizing this industry as one of the alternatives?
Possiblyif the U.S. shale revolution represents a paradigm shift that will result in sub-$50-$60 crude prices and substantially lower natural gas prices well into the future. Should this be the case, without significant changes in its approach to generating revenue from this industrywhich historically has funded ~50 percent of the governments budgetit seems the Russian government could consign itself to perpetual budget revenue penury and Mr. Putin to punishing pressure on military spending, his priority.
(Excerpt) Read more at oilprice.com ...
Why not do both? It’s been done before.
Sell, wait a while, and then renationalize.
That cow can be milked more than once.
That was my very first thought. That’s not a dilemma, that’s an opportunity.
Sell. Then renationalize. Lather rinse repeat.
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