Lesser of the evils

[Varche]

How times change.

Saudi Arabia, Iran and Venezuela " back in the fold". I wonder if any of them are oil producers to make up defecit from coming off Russian energy?

[TheBoy]

I think the Foreign Secretary pretty much said that this morning.  Not in so many words mind, as the silly bint never says anything useful at the best of times.

[biggriffin]

Mmm, as if by magic, two people get released from Iran, saying a debt was paid that had nothing to do with Iran, It was a debt with Persia.. Iranian oil via Turkey,, legally

[dave the builder]

We need to use UK oil and gas ,not buy it in 
it's not green to import when we are still burning oil and gas
we may as well use our own .
Russia ,China,Saudi Arabia , etc haven't said they will be carbon neutral any time soon 
Because they are making a mint selling stuff to the UK and Euroland

[Varche]

One lesson we have learnt from covid and Russia is that globalisation isn't such a great thing. Doing something about it is hard.

Had to smile as it is working in reverse for Russia. They have had to close 3 car factories due to component supply issues. One employs an astonishing 32,500 workers!

[LC0112G]

We need to use UK oil and gas ,not buy it in 
it's not green to import when we are still burning oil and gas
we may as well use our own .

But it's not 'our own'. It's Shell's, or BP's or ExonMobile's, or whoever extract's it from the ground/sea bed. Once extracted, those companies sell it on the world market at whatever the prevailing world market price is. If you attempted to tell them they could only sell it to the UK market, at below world prices, they'd tell you to eff-orf. And anyway, there isn't enough oil/gas in the North sea to materially affect world oil prices.

The only way the UK could insulate itself from this would be to setup (or nationalise) a state oil/gas company, which being government controlled would 'sell' to the UK market at  price below the market rate. That's proper communist thinking that I doubt even a Corbyn lead Labour party could support.

[dave the builder]

Even buying UK produced oil and gas at the going rate would be better than buying it off Putin surely 
also gives some UK jobs ,as opposed to paying Russian army wages 

[LC0112G]

Even buying UK produced oil and gas at the going rate would be better than buying it off Putin surely 
also gives some UK jobs ,as opposed to paying Russian army wages 

Of course, but Russia is currently second in the world oil producing nations list, (according to Wiki https://en.wikipedia.org/wiki/List_of_countries_by_oil_production) with around 15% of world supply, and more than 10 times what the UK does. If the world stops buying Russian oil (which it won't/can't) then the price of the remaining 85% of world production goes through the roof (supply and demand) until/unless the other nations increase production to make up the shortfall.

Some other nations might like the higher price, so won't want to increase production. So you're really looking at the USA and the OPEC countries to increase supply. The UK doesn't have enough to affect things.

[Doctor Gollum]

The Russian situation will be short lived in the grand scheme of things.

Eventually something will snap and I suspect a change of management will occur. The oligarchs, rightly or wrongly, will only suffer the sanctions for so long, and in spite of the size of Russia and its population, the vast majority cannot afford to support the few for very long.

The only question is who will snap first, the people or the few. Either way, Putin is fast approaching his end.

[Migv6 le Frog Fan]

I agree with that. He is a dead man walking.

[Sir Tigger KC]

I agree with that. He is a dead man walking.

Let's hope so.

[STEMO]

I wish someone would shoot Johnson, he really is a national embarrassment 

[Migv6 le Frog Fan]

We need to use UK oil and gas ,not buy it in 
it's not green to import when we are still burning oil and gas
we may as well use our own .

But it's not 'our own'. It's Shell's, or BP's or ExonMobile's, or whoever extract's it from the ground/sea bed. Once extracted, those companies sell it on the world market at whatever the prevailing world market price is. If you attempted to tell them they could only sell it to the UK market, at below world prices, they'd tell you to eff-orf. And anyway, there isn't enough oil/gas in the North sea to materially affect world oil prices.

The only way the UK could insulate itself from this would be to setup (or nationalise) a state oil/gas company, which being government controlled would 'sell' to the UK market at  price below the market rate. That's proper communist thinking that I doubt even a Corbyn lead Labour party could support.

That being the case, why then do consumers in the USA pay much lower prices than we do ?

[Doctor Gollum]

They don't particularly, once you take market size into account.

Put simply they buy more than we do and get a better price for it.

A can of beans costs more per can when purchased individually than a tray of cans. Likewise a tray vs a pallet. The more pallets you buy, the less you pay per can.

Currently they pay just over $5 a gallon, nearly $6 when adjusted for a full size gallon, and buy and large what costs a dollar there is a pound here regardless of the exchange rate.

That said, $6 a gallon is still a fair bit less than £7.50 a gallon, but for them it has almost doubled since Sippy Cup took office last year.

[STEMO]

They don't particularly, once you take market size into account.

Put simply they buy more than we do and get a better price for it.

A can of beans costs more per can when purchased individually than a tray of cans. Likewise a tray vs a pallet. The more pallets you buy, the less you pay per can.

Currently they pay just over $5 a gallon, nearly $6 when adjusted for a full size gallon, and buy and large what costs a dollar there is a pound here regardless of the exchange rate.

That said, $6 a gallon is still a fair bit less than £7.50 a gallon, but for them it has almost doubled since Sippy Cup took office last year.

Your knowledge of the international economics of commodities is almost equal to that of your understanding of company registrations and employment law. Amazing.