Panic in Ottawa after one drastic change in Canadian monetary policy
- Thread starter mentalfloss
- Start date
Explain to me how our currency at 85€ is damaging our oil exports.
So it's to our advantage.
Cons already admitted the balancing of the budget will be pushed back.
I imagine the lower interest rate can't help.
I imagine the lower interest rate can't help.
So let's rename the thread:
"America achieve's energy independence, pisses off Saudi's in the process, Saudi attaques back , budget balance pushed back as consequence "
Is a budget every penny you have or just what you wish to spend to meet obligations?
Well here is the kicker, by Saudi attacking back they are forcing us into a even better position, where our currency is low and good for manufacturing and we can still export oil. A win win for us
It's "industry" which includes oil.
The Saudis did that?
"The Breaking Point" - 8 Years Later — D. Ray Long
This is juicy: Saudi prince: $100-a-barrel oil 'never' again
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Saudi prince: $100-a-barrel oil 'never' again
Maria Bartiromo for USA TODAY 7:49 p.m. EST January 11, 2015
(Photo: AFP/Getty Images)
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Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.
Q: Can you explain Saudi Arabia's strategy in terms of not cutting oil production?
A: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.
Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.
Having said that, the decision to not reduce production was prudent, smart and shrewd. Because had Saudi Arabia cut its production by 1 or 2 million barrels, that 1 or 2 million would have been produced by others. Which means Saudi Arabia would have had two negatives, less oil produced, and lower prices. So, at least you got slammed and slapped on the face from one angle, which is the reduction of the price of oil, but not the reduction of production.
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Saudi prince: $100-a-barrel oil 'never' again
Maria Bartiromo for USA TODAY 7:49 p.m. EST January 11, 2015
(Photo: AFP/Getty Images)
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Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia's policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil "baloney" and said the sharp sell-off has put the Saudis "in bed" with the Russians. The interview has been edited for clarity and length.
Q: Can you explain Saudi Arabia's strategy in terms of not cutting oil production?
A: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.
Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.
Having said that, the decision to not reduce production was prudent, smart and shrewd. Because had Saudi Arabia cut its production by 1 or 2 million barrels, that 1 or 2 million would have been produced by others. Which means Saudi Arabia would have had two negatives, less oil produced, and lower prices. So, at least you got slammed and slapped on the face from one angle, which is the reduction of the price of oil, but not the reduction of production.
Actually the kicker is that there is less tax revenue and therefore it will take longer to balance the budget.
Joe Oliver postpones federal budget as oil price plummets
I'm not an economist, but here's what they say:
In his annual fall economic update on Nov. 12, Oliver forecast a budget surplus in 2015 of $1.9 billion. But that estimate was based on an oil price of $80 a barrel.
Since then, the price has plummeted below $50 a barrel and private sector economists are predicting the impact of low prices on Ottawa’s tax revenues will be very large. Many analysts say that, unless oil prices rise sharply, the federal government will be on the verge of running a budget deficit in 2015 even after Oliver’s $3 billion rainy day fund is taken into account.
In his annual fall economic update on Nov. 12, Oliver forecast a budget surplus in 2015 of $1.9 billion. But that estimate was based on an oil price of $80 a barrel.
Since then, the price has plummeted below $50 a barrel and private sector economists are predicting the impact of low prices on Ottawa’s tax revenues will be very large. Many analysts say that, unless oil prices rise sharply, the federal government will be on the verge of running a budget deficit in 2015 even after Oliver’s $3 billion rainy day fund is taken into account.
So now that Canada has achieved energy independence, what do you think Steven will do?
Bring back manufacturing.
A+!!!. You're getting picture on how $100+ overinflated oil built our oil industry up to triple output.
Well ya, the Saudi are in a race with us to the bottom, who could have predicted the Saudi reaction?
Steven's budget didn't take that into account. He's only a human.
We rely on selling our oil - our sh*tty, inefficient oil.
There is nothing independent about that.
There is nothing independent about that.
Apparently it's more efficient then you have been lead to believe. New Technology has changed the oil industry.