Trump and and confident Putin at their Helsinki summit in July 2018, via Reuters.
Sputniknews reports (source):
The Russian president and members of the cabinet and oil industry officials met via videoconference on Friday to discuss the situation on the global energy markets. Oil prices suffered their worst decline in decades in March after Russia and Saudi Arabia failed to reach a deal on output cuts amid the ongoing COVID-19 crisis.
The current slump in demand for oil could lead to shortages in the future when the global economy enters a period of economic recovery, Russian President Vladimir Putin has said.
“Demand will inevitably begin to recover, and a situation of an acute shortage of oil may arise, with all the negative consequences for the world economy [that go with it], because prices may skyrocket,” Putin said, speaking to officials and oil industry representatives on Friday. Putin added that it was the world’s common interest to avoid such a scenario.
Today, the situation on energy markets remains difficult, with demand continuing to fall, Putin noted. This undermines investments and threatens the workforce, and Russia would prefer long-term stability on the oil market, he added.
“I want to emphasize that our country has always advocated and is advocating for the long-term stability of the oil market, taking into account the positions of both producers and consumers,” Putin said.
According to the Russian president, the current situation poses not only economic risks, but technogenic and ecological ones as well. Putin noted that he spoke to US President Donald Trump about the energy markets situation earlier this week, and that both sides expressed concerns.
Fracking will die. Its a debt fuelled boondoggle anyway.
Its about market. I am sure most of the world prefare 20 dollar russian oil:) Next step is already there. A lot of that cant be sold and Russia might be in big trouble.
I hope people will invest in windturbine, solar electricity and make machines, heeanting and cooling more effective in energy use.
We now know the sand oil can be taken up. I would say americans will feel more safe but also as poluters for no reasons.
Sand oil is mostly a Canadian thing. And the US has greatly reduced its real pollution over the past 25 years and has seen almost no increase in total CO2 levels over the same period. The overwhelming problem with the increasing real deadly pollution and CO2 is NOT the US and the EU but China and increasingly India.
I know where sand oil is. USA use a lot of it.
“…unlike the oil sands deposits in Canada, oil is not currently produced from tar sands on a significant commercial level in the United States…” We mostly frack for our natural gas. And that great, cheap increase in gas has cut coal use greatly. That is a major reason the US has had hardly any increase in CO2 in 25 years and a very great reduction in real deadly pollution. If the US and EU stopped emitting all CO2, just the increase in China and India would replace it in a decade. And they would still be far below our living standards. And the deaths from their real pollution would make the deaths from this Pandemic look like child’s play. Anything that we do without China and India doing at least ten times as much, is meaningless feel-goodism.
Your electricity cost is three times that in the US. And your expensive wind power is hurting your economy. If you put all that money into developing natural gas with CCS you would do better and contribute a great deal to energy research for the whole world. But your energy conservation and building efficiency is really worth it. If we had put all the money that has gone into wind and solar into that we’d be far better off I think. I’m also for planting billions of fast growing really big Coastal Redwood trees here in California and the only other place they grow, China. But since I don’t think we have a chance of stopping China and India from their rapid increase in fossil fuel use, we better start building those dikes and learning to live with a new climate and weather conditions.
Nahhhhhhhhh…if the Saudis and Putz Putin reduce production to save their economies, oil fracking will be up and running just fine again with the increased price. And natural gas fracking is doing really well with its ability to produce at ever lower costs. This will undermine the Russian natural gas industry which has a much higher cost basis. Besides the stupid deals the Putz made with China giving away the vast Siberian gas reserves at prices below cost and tied to the price of oil.
If you’re right and gas fracking is so lower cost why then USA natural gas price is higher than Quatar’s?
They are the same in the US as in Qatar, $1.62 per MMbtu. Try to keep up.
Fracking is a huge US scam. https://www.nakedcapitalism.com/2020/03/is-the-u-s-fracking-boom-based-on-fraud.html
Trumps will back it with unlimited FED $ printing to distort world mkt as geopolitical tool.
And it causes earthquakes too I heard
Yes, and ground water contamination etc.
again amerikans beg–when oil prices increase they will resume further polluting their potable water w fracking…possessing no talent, manufacturing nill, they like the 3rd world nations they plunder must rely on extravagant ugliness to extend the life of their empire a few more years
Thats right There is price.
The unproductive Russia is not able to plundre anything. Thank You Russia. We love You small and the correct seize.
LMFAO…that’s the kind of lying, sour grapes crap you and yours spewed just before the collapse of your late Great and Glorious Russian Soviet Empire. Good timing, Igor. Now down another bottle of your Vodka ration while you still can. Enjoy.
Hahahaha so true their empire is almost done
LOL…where are all the great Russia is the greatest commenters around here who were saying Putz Putin’s oil price war was a great winner for the Great and Glorious Russian Federation? The Putz is again begging to be saved as he started begging at the G20 just a few days ago. Come on Russian he-men and aficionados, tell me how the Great and Glorious hypersonic weapons will make the Great and Glorious Russia the Ruler of the Universe along with your junior partner, China. Come on. Keep entertaining us.
Yes you are right – Russia is great! Live with it!
LOL…the dustbin of history is filled with greats like the past Great Russian Empires. So when the current not so great RF heads down the tubes into the dustbin of history, it will have plenty of actually great company, including some great Russian ones. I think that is great.
At $25 oil price and 20M bpd demand drop, most drillings & oil rigs investment will stop. Refinery will down size.
Fracking scam will die without bankroll to erase 10M bpd from supply, price will improve. It needs $35~45 to break even currently. To sell at below $20, the more they produce, the more loses vs amortization of investment sunk cost at say $20, with drilling + high processing cost say $15~25. So at $15, there isn’t any profit to help pay off the $20 investment debt. https://www.nakedcapitalism.com/2020/03/is-the-u-s-fracking-boom-based-on-fraud.html
Storage shortage high cost is another trouble when demand drop 20%(20M bpd), with supply up(5M bpd). All oil tanks & supertanker ships are getting filled, this add extra cost.
US reserve pumping has only 100M empty capacity, with few millions barrel per day rate, is not able to influence supply.
Canadian dirty sand oil will sell at only $9 due to high processing cost, wih transportation cost more than the oil. It will shut down as this is unprofitable.
So once economy rebound, supply will lag demand quickly due to massive cut of drilling, storage & processing investment. It take time to catch up.
Price will spike but supply limited by nature law. So economy recovery will be slowed down. Oil producers will suffer lost in overall, as their investment get write off initially in down turn, then has to find new investment to increase capacity during rebound.
Total revenue & profit is hence much less than stable supply. This is what Putin try to explain, not that Russia is losing the battle.
China will continue to pump up strategic reserve, a huge bonus to influence global supply hence price in future.
Why did Saudi use sledgehammer to hurt itself with supply ramp up in hysteria?
It has the lowest production cost $10 with best quality oil fetching premium, and a well amortized matured investment. So every barrel increase sales selling above $25 will help generate extra profit to cover its debt (need $90 per barrel to sustain).
But a few millions extra pump i.e.30% more from its current 10M bpd while seeing 50% price drop is not so profitable.
Without US consent, Saudi will never dare to kill US fracking industry. So its most likely US order aiming specifically at killing Iran (mostly new investm hence high amortized cost) & Venezuela (high processing cost heavy crude with new investment).
Russia recent huge oil investments, revenue and investment in Venezuela will suffer much under low oil price. It will further constraint its war on USNato sponsored terrorism in Syria & Libya.
Its also will wreck chaos for China heavy investment in Iran, Venezula, Africa, etc., with huge expansion in refinery and down stream product capacity.
Kike of zUS is playing very shrewd multi dimensional geopolitical game to wreck havoc with bioterrorism to reset global financial & economy order, after they get convince China will win the competition.
Kike $5T/funds like Black stone will now set up wholly owned outlet in China to wreck havoc. They are abundant sinking US ship like rat to find new host in China. Thousands of China’s kike are revived and penetrating CPC.