Diversification! Oil prices falling!

[Dizzy28]

Even if we have more oil to refine, the demand will be dismissed.

Demand for what?

The output from the refinery is used locally/sold Internationally
about 70% of the output of transportation fuels is consumed locally. which has increased by 16% for in 2014(Jan-October)

Since 2008 to now we have added 200k vehicles (based on the License plates)

How do we dismiss demand?...

The reality is that the GORTT
Loses Taxes

Gains
on the subsidy
on Lower import cost
Lower cost of Equity and local produced crude.

in the normal world lower prices does not 'dismiss demand'

Why do we increase production NOW in a commodity that has
been devalued ? Subsidy is not a revenue earner !

Remove the subsidy and sell the commodity on the international markets ?

Not going to happen in an election year. But AFTER people have to watch out.

"Loses Taxes" ? Not really. Lower yes. Hence cutback in spending by GORTT.

Read Gillette comments very closely. It is pure politics.

There is an answer

Dizzy8 may have the answer

Me?? I am flattered.
TBH I don't believe Trinidad has the mentality needed for diversification. We always have that buffer of oil money so we just don't care to ensure the business environment/doing business factors are of a quality to attract FDI in the amounts we need to replace GDP generated by energy. We also operate in highly bureaucratic and corrupt regimes.

Customs for example is so inefficient when compared to high performing countries it would make any foreign entity cringe. Ya'll can google how long it takes to clear a container in Singapore and then compare it to us.

Ports - PPOS and Plipdeco average around 12-16 moves per hour. Jamaica is double that, Port Everglades in Ft Lauderdale somewhere around 32-35 and Singapore averages 50+moves per hour. Why aren't we efficient in Port Operations? Up to two years ago and off the large ports in the region only Venezuela had lower performing ports.

Worker Mentality is an issue by itself as the outside world has a perception we are a party loving ppl almost to the point that it is detrimental to performance at work.

I can go on however to be competitive in the world today especially when it comes to FDI a country needs all the help it can and simply saying Trinidad has cheap energy just simply isn't enough.

[orangefox]

^^ Yep Dizzy28 .. On track.

Ok, just came back from a Xmas party and flying
Best time to think for me

Think about this. It is controversial .

Recall that real GDP can be decomposed into four component parts: aggregate expenditures on consumption, investment, government, and net exports.

Somehow we seem to always "fake" GDP with spending by Gov't. However in TT it works.
PNM had it correct. They spent $$ building infrastructure and investments followed. PNM are
similar to Republicans and sadly PP is similar to Democrats - Too much social spending

[Numb3r4]

The naivety and ignorance in this thread are nothing short of astounding.

1.On the one hand there is the US,Europe,UK and their allies.On the other China,Russia,N.Korea,Cuba and their allies.Bells ringing yet?

2.The price of oil is not tied to some string that when news emerges it automatically draws the price up or down.It is not tied to supply or demand,shale,OPEC,Saudi or anything else.
When news emerges,or in general, people or programs have to press the buy or sell buttons and whichever side is stronger determines the price of oil.America has the largest traders in the world so it seems price is determined by market forces but it isn't.CNN,BBC,Bloomberg and other 'unbiased' news outlets are from the US,UK and their allies so they tell you what to believe as can be seen from the previous responses in this thread.
Just based on how the price of oil is affecting the world recently you really think the US being the superpower it is would allow itself to be at the mercy of some middle eastern?

3.The attack on the Ruble has been orchestrated by the US seeking to drive the Russian economy to its knees along with the other sanctions.China does not allow it's currency to be freely traded because they know the same could happen to them.China is instead seeking to help their ally by swapping Yuan for Ruble thus trying to stabilize the Russian economy slightly.

4.Cuba longtime allies of Russia and China have now had thawing relations with the US in the US attempting to isolate Russia further.Starting to piece together the puzzle yet?

5.Most likely N.Korea did not hack Sony as disclosed by the honourable and always accurate FBI or CIA.It probably was carried out by the US itself and now the US and N.Korea(possessor of Nuclear weaponry and Russian ally) could attempt to foster some relations by seeking to find the people who hacked Sony and blamed N.Korea.Attempts to isolate Russia again.This is the reason China and NKorea relations have become lukewarm as of recent.

6.Do you think it was coincidence the Chinese VP visit to Trinidad recently was followed by Biden's visit soon after?China is attempting to buy US allies/oil and gas producers from all over the world with gifts of donations such as Trinidad received recently.

Let's hope Trinidad chooses the correct ally and you people finally understand what is going on in the world today wrt oil prices.

Sounds more sensible.

Good points however I am more inclined to believe that the North Korean cyber attack was China flexing its might in the region, offering indirect help to carry out the attack.

Again the Chinese have bought out oil countries before as in Africa where they have traded oil rights for help with civil engineering projects. That coupled with the Chinese manufacturing industry looking to expand their base and export to new markets the oil and gas sector is a great market. Their are many new Chinese manufacturers that are now making oil and gas equipment for sale much cheaper than the American and International counterparts (standadds and quality aside). A good example would be right here in Trinidad where we have Chinese companies that can build everything from rig, pumping and well control equipment to pipeline and tubulars.

We make the assumption that the US is dependant on oil but what if they are content to let a Middle Eastern run the show? What if they don't care? What if they feel secure in their ability to supply their energy needs? What if they use this opportunity namely the oil price crisis and the new shale finds to usher in a new era in energy and possibly diversify their energy portfolio?

[Numb3r4]

Merry Christmas

[bluesclues]

Merry Christmas. watching 'The Interview' now

[sMASH]

I think rasc's assessment is correct. This whole thing is meant to squeeze Russia. The shale gas initiatives would be on pause and overall petroleum industries would not be so badly off, customers in the US would benefit from low prices. Saudi has long been a friend of the US so it explains why they would do that so easily without US retaliation.

[orangefox]

^^ Not really. That is a different issue.

USA is "angry" at Russia due to annexation of Crimea or rather the Crimea Peninsula.

[Dizzy28]

I think rasc's assessment is correct. This whole thing is meant to squeeze Russia. The shale gas initiatives would be on pause and overall petroleum industries would not be so badly off, customers in the US would benefit from low prices. Saudi has long been a friend of the US so it explains why they would do that so easily without US retaliation.

There is no friendship in Business. The Saudis killing three birds with one stone by keeping prices low for now
1. Hurting American Shale Oil business
2. Punishing Russia for the overt support of Al Assad and the Syrian Regime
3. Punishing Iran for:
a. Support of Al Assad and the Syrian Regime
b. Being Shia
c. Development of their Nuclear Programme

The Ruskies and the Persians depend on oil monies the US not really. The Saudis aren't doing anyone but themselves any favours.

[orangefox]

I think rasc's assessment is correct. This whole thing is meant to squeeze Russia. The shale gas initiatives would be on pause and overall petroleum industries would not be so badly off, customers in the US would benefit from low prices. Saudi has long been a friend of the US so it explains why they would do that so easily without US retaliation.

There is no friendship in Business. The Saudis killing three birds with one stone by keeping prices low for now
1. Hurting American Shale Oil business
2. Punishing Russia for the overt support of Al Assad and the Syrian Regime
3. Punishing Iran for:
a. Support of Al Assad and the Syrian Regime
b. Being Shia
c. Development of their Nuclear Programme

The Ruskies and the Persians depend on oil monies the US not really. The Saudis aren't doing anyone but themselves any favours.

Actually the majority of business is done out of friendship

[sMASH]

Saudi Arabia is in America backpocket. I don't like it, but that's why America is not taking action against this price drop.
From how ksa was founded to their activity (or lack there of Israel wise) shows ties to America .

America is not dependant on shale gas, so it can afford to keep in on the shelf a bit more to let Russia squirm.


Only good big thing is that China /Russia economic links may develop a greater unification.

[The_Honourable]

Saw this... thought i would put it here. Some excerpts...

Russian economy attacked through oil prices – Obama

Pushing down global oil prices was part of Washington’s rationale to destabilize the Russian economy, US President Barack Obama said in an interview to National Public Radio, a non-profit media organization.

Oil price key to Russian economy crumbling

Answering a direct question whether it was the US that collapsed oil prices globally to create problems for Russia, Obama said that Russian economy “was already contracting and capital was fleeing even before oil collapsed.”

Obama revealed that it was a “part of our rationale” that the “only thing” keeping Russian economy “afloat” was the price of oil.

Sanctions only made Russian economy more vulnerable to the “inevitable” oil price disruptions. “They'd have enormous difficulty managing it,” Obama said.

The US should be “firm with the Russians” when it comes to issues like Ukraine, but also America must build its manufacturing base to make sure its economy is better than Russia’s.

“Ultimately, the big advantage we have with Russia is we've got a dynamic, vital economy, and they don't. They rely on oil; we rely on oil and iPads and movies and you name it,” Obama said, adding that “making sure that prosperity is broadly shared” is also important for American people to feel confident about the future.

Putin ‘not so smart’ after all – Obama

“You'll recall that three or four months ago, everybody in Washington was convinced that President Putin was a genius... And he had outmaneuvered all of us and he had, you know, bullied and, you know, strategized his way into expanding Russian power,” Obama said.

“We don't want war with Russia,” Obama recalled telling himself at the time. So instead he concentrated on applying “steady pressure” on Moscow.

An international coalition with European partners was formed “to oppose Russia's violation of another country's sovereignty,” Obama said, after the interviewer mentioned the Crimean Peninsula.

After the citizens of Crimea voted overwhelmingly in favor of reuniting with Russia in spring, Moscow quickly organized the region’s reentry into the Russian Federation.

“Over time, this would be a strategic mistake by Russia,” Obama said.

“And today, you know, I'd sense that at least outside of Russia, maybe some people are thinking what Putin did wasn't so smart,” Obama said.

Source: http://rt.com/usa/218731-obama-npr-interview-russia/

[orangefox]

Saw this... thought i would put it here. Some excerpts...

Russian economy attacked through oil prices – Obama

Pushing down global oil prices was part of Washington’s rationale to destabilize the Russian economy, US President Barack Obama said in an interview to National Public Radio, a non-profit media organization.

Oil price key to Russian economy crumbling

Answering a direct question whether it was the US that collapsed oil prices globally to create problems for Russia, Obama said that Russian economy “was already contracting and capital was fleeing even before oil collapsed.”

Obama revealed that it was a “part of our rationale” that the “only thing” keeping Russian economy “afloat” was the price of oil.

Sanctions only made Russian economy more vulnerable to the “inevitable” oil price disruptions. “They'd have enormous difficulty managing it,” Obama said.

The US should be “firm with the Russians” when it comes to issues like Ukraine, but also America must build its manufacturing base to make sure its economy is better than Russia’s.

“Ultimately, the big advantage we have with Russia is we've got a dynamic, vital economy, and they don't. They rely on oil; we rely on oil and iPads and movies and you name it,” Obama said, adding that “making sure that prosperity is broadly shared” is also important for American people to feel confident about the future.

Putin ‘not so smart’ after all – Obama

“You'll recall that three or four months ago, everybody in Washington was convinced that President Putin was a genius... And he had outmaneuvered all of us and he had, you know, bullied and, you know, strategized his way into expanding Russian power,” Obama said.

“We don't want war with Russia,” Obama recalled telling himself at the time. So instead he concentrated on applying “steady pressure” on Moscow.

An international coalition with European partners was formed “to oppose Russia's violation of another country's sovereignty,” Obama said, after the interviewer mentioned the Crimean Peninsula.

After the citizens of Crimea voted overwhelmingly in favor of reuniting with Russia in spring, Moscow quickly organized the region’s reentry into the Russian Federation.

“Over time, this would be a strategic mistake by Russia,” Obama said.

“And today, you know, I'd sense that at least outside of Russia, maybe some people are thinking what Putin did wasn't so smart,” Obama said.

Source: http://rt.com/usa/218731-obama-npr-interview-russia/

Lol ... Read some of the comments if you subscribe to RT ..

Example:

American aggresion once again hiding behind lies & slander. This is America's great defensive Strength, twisting facts and and backing it up with the controlled Mainstream Media. Feeding the world hogwash and dressing it up like a a sunday picnic. Obama's mouth is an open grave full of corpses, although he appears like a polished memorial to courage.

[orangefox]

Americans have used their " oil reserves" to flood the market but will pull back soon since it will
be cheaper to buy on the open market. Saudi Arabia knows this very well so will not reduce
supply to push prices up. They will just sit back and smile. They rule.

The above is game played for years. Oil business is a love & hate situation. It is business.

Trinidad cannot play games. We are not" big boys" as we think.
God is not a Trini

GORTT have already cut back spending $$ in keys areas of development.

At the end of it all the poor man will suffer.

The rich will not.

[Skanky]

Believe what you will about the cause of low oil prices but ponder this;we know how the world functions with the US as the superpower.
How will the world look if China becomes the new superpower with Russia its closest ally?
Are we willing to chance a strong Russia and China and their quest for power and dominance or can we look at the big picture and realize that though the US induced oil crash will hurt world economies and ours it is actually for the greater good of the free world?

Better the devil you know than the devil you don't.

[Dizzy28]

Trinidad cannot play games. We are not" big boys" as we think.
God is not a Trini

GORTT have already cut back spending $$ in keys areas of development.

At the end of it all the poor man will suffer.

The rich will not.

Where exactly has money been cut in key areas of development??

So far I have seen them cut the Constituency Fund (thankfully so). That was far from being key.
Haven't seen announcements to cuts in education, health, or nat sec.!!

[Allergic2BunnyEars]

Trinidad cannot play games. We are not" big boys" as we think.
God is not a Trini

GORTT have already cut back spending $$ in keys areas of development.

At the end of it all the poor man will suffer.

The rich will not.

Where exactly has money been cut in key areas of development??

So far I have seen them cut the Constituency Fund (thankfully so). That was far from being key.
Haven't seen announcements to cuts in education, health, or nat sec.!!

You actually expect a well thought out response from orangefox?

[orangefox]

Trinidad cannot play games. We are not" big boys" as we think.
God is not a Trini

GORTT have already cut back spending $$ in keys areas of development.

At the end of it all the poor man will suffer.

The rich will not.

Where exactly has money been cut in key areas of development??

So far I have seen them cut the Constituency Fund (thankfully so). That was far from being key.
Haven't seen announcements to cuts in education, health, or nat sec.!!

Decrease in PSIP

2015 will be a very interesting year

Dizzy have a fantastic Old Years Celebration buddy !!

[bluesclues]

selling oil at $150 a barrel atm. cost $30 a barrel approx. LEL. these expert economists in this country yes. i at this time in my life pity ppl with degrees.

[ModMania]

me too ^

[nervewrecker]

selling oil at $150 a barrel atm. cost $30 a barrel approx. LEL. these expert economists in this country yes. i at this time in my life pity ppl with degrees.

where you get this figure?

[bluesclues]

selling oil at $150 a barrel atm. cost $30 a barrel approx. LEL. these expert economists in this country yes. i at this time in my life pity ppl with degrees.

where you get this figure?

simple math. a 500% return on every $30 spent means im selling oil for $150 a barrel imv. but then i have a very warped sense of business, economy and mathematics lol

[toyolink]

....And the price continues to hit another low.

[DVSTT]

....And the price continues to hit another low.

DBU God is a trini

[Redman]

selling oil at $150 a barrel atm. cost $30 a barrel approx. LEL. these expert economists in this country yes. i at this time in my life pity ppl with degrees.

where you get this figure?

simple math. a 500% return on every $30 spent means im selling oil for $150 a barrel imv. but then i have a very warped sense of business, economy and mathematics lol

smh.

[nervewrecker]

selling oil at $150 a barrel atm. cost $30 a barrel approx. LEL. these expert economists in this country yes. i at this time in my life pity ppl with degrees.

where you get this figure?

simple math. a 500% return on every $30 spent means im selling oil for $150 a barrel imv. but then i have a very warped sense of business, economy and mathematics lol

smh.

X2, I just didn't worry anymore

[Allergic2BunnyEars]

selling oil at $150 a barrel atm. cost $30 a barrel approx. LEL. these expert economists in this country yes. i at this time in my life pity ppl with degrees.

where you get this figure?

simple math. a 500% return on every $30 spent means im selling oil for $150 a barrel imv. but then i have a very warped sense of business, economy and mathematics lol

smh.

LOL

[EFFECTIC DESIGNS]

Putin ‘not so smart’ after all – Obama

“You'll recall that three or four months ago, everybody in Washington was convinced that President Putin was a genius... And he had outmaneuvered all of us and he had, you know, bullied and, you know, strategized his way into expanding Russian power,” Obama said.

who the fack he fooling?

Putin did outsmart him and still is, Putin is a chess player he has all this covered already.

Just look at every move played out, always 3 steps ahead of Obama.
Obama needs to stop kidding himself into thinking a liberal moron like himself could understand the tactics of the former soviet KGB spy. Putin already knew this was going to happen it don't take a genius to know Obama is pretending to be Ronald Reagen.

The difference is Reagen was a boss and the Russians had respect for him. Putin sees Obama like Martin Joseph, he can't help but laugh when he sees his face and see him making threats.

[bluesclues]

selling oil at $150 a barrel atm. cost $30 a barrel approx. LEL. these expert economists in this country yes. i at this time in my life pity ppl with degrees.

where you get this figure?

simple math. a 500% return on every $30 spent means im selling oil for $150 a barrel imv. but then i have a very warped sense of business, economy and mathematics lol

smh.

X2, I just didn't worry anymore

lawwwwl

[Allergic2BunnyEars]

Putin ‘not so smart’ after all – Obama

“You'll recall that three or four months ago, everybody in Washington was convinced that President Putin was a genius... And he had outmaneuvered all of us and he had, you know, bullied and, you know, strategized his way into expanding Russian power,” Obama said.

who the fack he fooling?

Putin did outsmart him and still is, Putin is a chess player he has all this covered already.

Just look at every move played out, always 3 steps ahead of Obama.
Obama needs to stop kidding himself into thinking a liberal moron like himself could understand the tactics of the former soviet KGB spy. Putin already knew this was going to happen it don't take a genius to know Obama is pretending to be Ronald Reagen.

The difference is Reagen was a boss and the Russians had respect for him. Putin sees Obama like Martin Joseph, he can't help but laugh when he sees his face and see him making threats.

LOL

[mero]

*cringe*