Comments on: Russia Considering Establishing Oil Reserve to Influence Prices http://www.nakedcapitalism.com/2008/10/russia-considering-establishing-oil.html Sun, 22 Nov 2009 04:39:16 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: baychev http://www.nakedcapitalism.com/2008/10/russia-considering-establishing-oil.html#comment-22855 baychev Fri, 24 Oct 2008 06:48:00 +0000 http://www.nakedcapitalism.com/2008/10/russia-considering-establishing-oil-reserve-to-influence-prices/#comment-22855 indeed deep underground storage seems the cheapest and with highest ROI option (no investment).<br/>the gov't had recently slashed the exercise tax on oil and is giving subsidies to oil companies to explore new fields. before the gov't was pocketing 75% of all oil revenue, which i believe is the right thing given that underground reserves belong to the state rather than to the companies that simply pump it out.<br/>but the slump in oil prices is going to wipe out the budget surpluss and pull a handbrake on the currency reserves, so the politicians will play it more humble. asides from that the prospectives for further industrialization and growth are excellent and steps were taken already to diversify the economy. we'll see how fast this will develop. indeed deep underground storage seems the cheapest and with highest ROI option (no investment).
the gov’t had recently slashed the exercise tax on oil and is giving subsidies to oil companies to explore new fields. before the gov’t was pocketing 75% of all oil revenue, which i believe is the right thing given that underground reserves belong to the state rather than to the companies that simply pump it out.
but the slump in oil prices is going to wipe out the budget surpluss and pull a handbrake on the currency reserves, so the politicians will play it more humble. asides from that the prospectives for further industrialization and growth are excellent and steps were taken already to diversify the economy. we’ll see how fast this will develop.

]]> By: Anonymous http://www.nakedcapitalism.com/2008/10/russia-considering-establishing-oil.html#comment-22806 Anonymous Fri, 24 Oct 2008 01:11:00 +0000 http://www.nakedcapitalism.com/2008/10/russia-considering-establishing-oil-reserve-to-influence-prices/#comment-22806 No, it doesnt make much sense outside of some kind of weird bluff.<br/><br/>The other thing the head of Gazprom announced in the Spring, Russian production had peaked. So, its a weird time to be talking about creating reserves.<br/><br/>Obviously, all the oil producers got quite happy with money from run-up, no doubt they're a little concerned with the price drop and how to stop it. No, it doesnt make much sense outside of some kind of weird bluff.

The other thing the head of Gazprom announced in the Spring, Russian production had peaked. So, its a weird time to be talking about creating reserves.

Obviously, all the oil producers got quite happy with money from run-up, no doubt they’re a little concerned with the price drop and how to stop it.

]]> By: William Mitchell http://www.nakedcapitalism.com/2008/10/russia-considering-establishing-oil.html#comment-22795 William Mitchell Thu, 23 Oct 2008 23:14:00 +0000 http://www.nakedcapitalism.com/2008/10/russia-considering-establishing-oil-reserve-to-influence-prices/#comment-22795 This doesn't make sense. Russia already has the best kind of reserve: oil in the ground. It's free to just leave it there. Why spend to pump and store?<br/><br/>Maybe they plan to cheat the cartel. They can hide oil sales, but not production. A fictitious reserve would solve this problem.<br/><br/>Is there some other reason I'm missing? This doesn’t make sense. Russia already has the best kind of reserve: oil in the ground. It’s free to just leave it there. Why spend to pump and store?

Maybe they plan to cheat the cartel. They can hide oil sales, but not production. A fictitious reserve would solve this problem.

Is there some other reason I’m missing?

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