Oil Price Drop Signals Global Depression and WW3!

by bluesbaby5050 on December 23rd, 2014

Oil Price Drop Signals Global Depression and WW3! Christopher Greene of AMTV explains why oil prices are falling.

Alexandra Bruce
December 14, 2014

AMTV host, Christopher Greene explains how since 2008, the US has increased oil production by an astounding 50%, made possible by hydraulic, horizontal drilling known as "fracking," making the US the world's number one producer of natural gas and
doubling oil production in the States of Texas and Oklahoma, in just six years.

Back in 2008-2009, the price of oil was $200 per barrel. Lately, it's been trading at barely $70 per barrel and forecasted to go as low as $30-$40, before stabilizing at $60. This is disastrous for the Russian and Iranian economies, which are almost exclusively
dependent on petroleum sales to run their economies.

The Russian Ruble has lost 60% of its value compared to the US dollar over the past year, due to the slide in the price of oil, compounded by the US-NATO economic sanctions. A similar currency crash has occurred with the Iranian Rial.

As a result of these economic sanctions and depressed oil prices, industrial output in Russia is down, inflations is edging into the double-digits, which amounts to economic warfare - which is commonly seen before physical war...and there's more...


Video Copyright ©2015 AMTV. All rights reserved. - http://www.forbiddenknowledgetv.com/videos/geopolitics/oil-price-drop-si...
More here- https://www.youtube.com/watch?v=tIbleTNhCjs

 Filed under: Events


HebrianDaniel: relying on oil only? that

relying on oil only? that really stupid to be honest

pasqualie: It really depends hebrian

middle eastern countries thats basically all they have. and for a long time its been the only thing they really needed. only a few countries like quatar and united arab emirates trying to diversify their economies.

its why iran wants a nuke, so americans or anyone else cannot invade them. its basically their insurance. because americans have been invading countries for their oil in recent history. iran sees from north korea, that if they get a nuke, they get insurance no one messes with them. and in light of what they saw in iraq, i dont think anyone would blame them for wanting one. its the great equalizer.

russia didnt diversify their economy because they were making so much profit from gas and oil that they didnt need to. i dont think they imagined someone could drop the price of oiil so much and take losses like that just to destabilize russia. but russia didnt have really anything else to begin with. their manufacturing is very old and almost non existent. other than vodka and caviar, i dont think anyone can name anything else russia produces.

basically this happened because russia was trying to create a new reserve currency. so it was economic war when they were pulling out of europe and north america trying to set up their own system in asia. americans were not going to stand around and let russia do this.

granted they cant invade russia like they did iraq, so its gonna be an economic war. might lead to conflict if putin feels cornered and has no where else to go.

but if comes down to nuclear war, everyone loses. only the elite with their underground bunkers survive. 99.999 percent of the rest of humanity is dead.

only the stupid military leaders in russia, china and america are the only ones thinking they can win and survive a nuclear war. end of day those guys just get their invites to the bunkers so they wait it out.

also diversifying your economy takes massive investment. i think the russians after communism fell, it took them a while to get things together, they took out their loans from imf and built up what they could of the oil and gas. and they paid the debt back. so it really hasnt been alot of time since communism fell till now for them to develop anything else.

pasqualie: also fracking is bad

basically you trading your water for oil, since you need to use water to steam it out.

it causes massive pollution of ground water, and there is huge toxic waste ponds needed that regardless of how safe they say it is, it seeps into ground water.

in alberta the native reserves around these fracking projects have huge rates of miscarriages, and birth defects and malformations.

question remains water is the most precious thing on this planet, what is those states gonna do when they have polluted their water, especially since fresh water is already running low in the states. alot of the american deep water aquifers are already polluted with pesticides and other toxic chemicals.

its why they banned fracking in europe. destroys your underwater fresh water aquifers.

Tarheel: "No more $100/barrel oil" & "No conspiracies" says Saudi OM

1-"We'll NEVER cut oil production".
2-"If they want to cut production they are welcome, we are not going to cut, and certainly Saudi Arabia isn't going to cut," al-Naimi said. " [That] position we will hold forever, not [just] 2015."
3-"There is no effort against anyone in the international oil market, there are no conspiracies against other countries," he said.

Saudi Arabia has a tough message for oil producers hurting from the price crash: We'll never cut our output.

In an exclusive interview with CNN, Saudi oil minister Ali al-Naimi also said he wasn't conspiring to take out rival producers by driving down the price.

"These rumors or whoever generated them, is completely mistaken," he said.

U.S. crude prices have slumped by nearly 50% in six months, the sharpest fall for many years.

That has unsettled stock markets, accelerated a financial crisis in Russia, raised the risk that Venezuela will default and forced some U.S. producers to shed jobs and scale back investment.

Depending on which conspiracy theory you subscribe to, Saudi Arabia is waging an oil price war against fellow OPEC member Iran, Syria, Russia or even the U.S., its long-standing ally.

"We are going to continue to produce what we are producing, we are going to continue to welcome additional production if customers come and ask for it," al-Naimi said.

OPEC's most powerful official said he was one of the first to welcome the emergence of the U.S. shale oil industry five years ago.


pasqualie: But the reason remains

why would they not cut oil production when they have been for a while to keep prices high. why would they continue to pump oil at a loss?

it was the reason why the opec was set up in the first place so they could regulate costs.

Tarheel: Because they arent "losing" anything.

Your break even price of $70-$75 is fictitious.

pasqualie: there is a double edged sword as well in the drop in oil price

alot of those small and medium size fracking companies, they took out loans, issued bonds to set up the business based on a 80-100 dollar a barrel oil price.

at 65 dollars a barrel its means alot of those bills not getting paid. estimated 1 trillion in bonds and loans for fracking companies.

could lead to another subprime fiasco like we saw in 2008.

pasqualie: In hindsight

It seems there was nothing noble about russia standing up to the west. The situation was ukraine found some huge oil and gas reserves offshore. It was a threat to russias revenue and control of ukraine. Because if they developed it, they would not need russian oil and gas, as well europe would have probably bought from ukraine instead. So the russians did a resource grab. Grabbing the 200 mile radius of where it was found in the water. And reason why they trying to grab as much coastal areas as well.

The research and exploration was done by the american oil companies. So they are pissed off.

Right now whats on the table is to cut off russia from the swift banking system which means they cant transfer money or recieve them from financial markets. If it happens basically russian economy callapses, like irans when they were cut off from swift.

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