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PeakOil is You

PeakOil is You

How The Petrodollar Quietly Died, And Nobody Noticed

Discussions about the economic and financial ramifications of PEAK OIL

Re: How The Petrodollar Quietly Died, And Nobody Noticed

Unread postby Outcast_Searcher » Fri 21 Dec 2018, 14:16:25

Tanada wrote:Somebody noticed.

Goodbye Petrodollar: Russia Accepts Yuan, Is Now China’s Biggest Oil Partner

Russia reaps the rewards of dumping the dollar.

...

The dollar is slowly losing its privileged place in international transactions. What this means for the United States is anyone’s guess.

http://thenewsdoctors.com/goodbye-petro ... l-partner/

Is it too difficult for anyone to look at a DXY chart, and look for any evidence the dollar is doomed with all this "significant" change going on re petrodollar doom?

If logic weren't a thing, the perma-doomer / collapse crowd just might have a point. As it is, NOT SO MUCH.

https://www.tradingview.com/symbols/TVC-DXY/

Go ahead. Pick your timeframe, from 1 day to all. Clearly business as usual for the dollar, IN THE REAL WORLD.

...

(For the umpteenth time, with mature FX markets trading all major currencies to the tune of several $trillion a day, the idea that any competent entity of means can't hold ANY basket of currencies they want any time they want, regardless of whatever petrodollar account balance is required to trade oil is completely nonsensical.)

Not that I'd expect the perma-doomer fast crash crowd to consider logical points or data that detract from their religion.
Given the track record of the perma-doomer blogs, I wouldn't bet a fast crash doomer's money on their predictions.
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Re: How The Petrodollar Quietly Died, And Nobody Noticed

Unread postby onlooker » Fri 21 Dec 2018, 14:32:00

You'd think the "people can't afford oil based products, even at low prices" nonsense spreading ETP zealotry crowd would at LEAST recognize the internal lack of logic in claiming that low oil prices are bad for consumers who are supposedly getting financially badly hurt by higher oil prices. 

Whether Short is right or not, you are completely missing the point. The oil price lowering is a symptom of the ongoing demise of the Oil Industry. It is the signal that the Oil Industry has going down the drain. Being that the Oil industry and the Economy together will be succumbing to lack of Net energy to maintain this industrial civlilization. Consumers, economic activity will be all suffering in an environment of Stagflation, a depressed Economy with the currency becoming worthless. That is all the product of reaching the dead state, whereby Oil becomes a liability to the Economy rather than a benefit.
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Re: How The Petrodollar Quietly Died, And Nobody Noticed

Unread postby ROCKMAN » Sat 22 Dec 2018, 14:25:38

Looker – You and the Rockman often view the situation similarly. But allow me to modify you a bit: “The oil price lowering is a symptom of the ongoing demise of the Oil Industry.” The demise of a number of oil companies…not the entire industry. A theoretical: max global production - 60 million bopd. It’s quite possible the INDUSTRY could be experiencing record profits at that time. Obviously, many companies around today would no longer exist. Maybe ExxonMobil might have become ExxonMobilChevron and might be one of those very profitable companies at that time. Or any other combination you can imagine. Back in the bust of the mid 80’s there were less then half the companies that existed in the boom of the late 70’s. The oil price crash at time did not kill the industry…just a lot of companies.

Again, as pointed out many times, PO does not mean we’ll have no oil production. Short of a true technical miracle the world will still produce many BILLIONS bbls of oil long after we pass PO. Maybe a TRILLION+ bbls. And there will exist hundreds of companies producing that oil. And doing so very profitably at times.
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Re: How The Petrodollar Quietly Died, And Nobody Noticed

Unread postby onlooker » Sat 22 Dec 2018, 15:33:18

Rockman, as much as I respect your acumen on matters of Oil and your patience with our rather uninformed posts at times, I am not sure. To me even though I know, you and Rockdoc have repeated that EROEI does not factor into decisions made by the Oil Industry, ultimately it has to matter. Afterall, money is just a way to price a resource taking into account supply/demand cues. Energy is obviously also priced. So, I believe that at some point the expenses/energy to exploit Oil as a energy resource will be too much to bear, of course the question is when. Some simply say that point is definitely reached when the energy to attain energy is more than the energy derived or attained.
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Re: How The Petrodollar Quietly Died, And Nobody Noticed

Unread postby asg70 » Sun 23 Dec 2018, 11:04:42

onlooker wrote:The oil price lowering is a symptom of the ongoing demise of the Oil Industry.


Spoken like a true doomer NPC.

Remember not that long ago when the Saudis pumped full out to "destroy" fracking? What was the rhetoric here about that? I'm too lazy to look at the archives, but I'm pretty sure it was exactly what you're saying above. Maybe you yourself pounded out the same phrase. Guess what happened? The invisible hand of the market, that's what. The solution to high oil prices is high oil prices and the solution to low oil prices is low oil prices.

Either way, BAU continues apace.
"this is peak now. Wanna bet? The Real Pain starts . . . now." (11/21/18)" --pstarr
"$0/barrel soon as per etp." (12/30/18)" --pstarr
ATTN: SHORT LOST A BET AND WON'T EVEN ADMIT HE MADE ONE. HE SHOULD NOT BE WELCOME HERE!
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Re: How The Petrodollar Quietly Died, And Nobody Noticed

Unread postby Pops » Sun 23 Dec 2018, 14:02:40

ROCKMAN wrote:Again, as pointed out many times, PO does not mean we’ll have no oil production. Short of a true technical miracle the world will still produce many BILLIONS bbls of oil long after we pass PO. Maybe a TRILLION+ bbls. And there will exist hundreds of companies producing that oil. And doing so very profitably at times.

Therein is the appeal of the "oil becomes valueless overnight" fantasy. The logical, supply/demand theory of increasing scarcity and cost bringing grinding hardship into some austere future just doesn't titillate the EOTWAWKI bone like Overnight Armageddon.
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