Implications of OPEC trading in Euros

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Well the prices are usually dependant on the Refining Plants. Simply if the US prices rise, The US starts purchasing abroad at cheaper prices, which of course increases demand, which decreases supply, which in turn increases prices.

Simply put it's all a giant mathematical vector that can very easily be avoided, however such companies like profit therefore they don't like to avoid such problems.

 

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"however such companies like profit therefore they don't like to avoid such problems."

But these problems include losing goodwill. The petroleum industry is becoming unpopular, because they are not perceived as taking good care of their customers. That's just fundamentally bad business, and doesn't make rational sense.

What makes rational sense is that there is an incipient crisis of supply that petroleum cartels fear and anticipate (but will not publicly discuss) and they are presently making a panicked grab for all they can while they can.

 

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"Oil and Gas market is a controlled market"

True, but without control of supply, there is no control. Supply is slipping out of the control of corporations like Exxon-Mobil, and potentially beyond the control of cartels like OPEC if there comes a sea change- For example, mideast and S. American alliance shifts, leading to Euro trading, Yuan trading.

 

Bro Can U Spare a Dime / See Change?

You should, because it is accelerating now.

 

But the singularity (high-noon) of destructive resonance is unknown- Just to make it interesting.

 

But like any disaster, at least we'll all see it in the instant that it first shockingly disrupts our personal and common plans, hopes, lives, etc. Somehow that's not such comforting thinking... which is what I increasingly find myself groping for when I think on the future of my country.

 

You are "blowing smoke" "slinging jargon" etc. I began to recognize this when you claimed to be advising the Chinese, had the solution to the controlled fusion problem, were negotiating with the oil majors, etc.

In this case you are recommending "neural networks" and they can do amazing things, BUT they are not programed. Instead they are provided with a large "training set" to learn on (and of course the "answers" to each of the training set problems.) The larger the parameter space (thousands you said) the larger your training set must be. I am not an expert on neural nets, but if the net is to cope with 1000 potentially different and independent parameters, then probably a minimum of 1,000,000 different examples of the parameter sets with the "out come" of each are required for training up the neural net to a reasonable performance level on a new input set of parameters (not one of the training sets) for the net to be reasonably good at predicting the "out come" for that set of parameter inputs it was not trained on.

The basic nonsense and ignorance in your suggestion, your "smoke blowing" in this case, is the fact that the Earth and humans living on it have never been thru this global energy crisis type of situation before. You do not have a 1,000,000 example cases of known input parameter sets with associated known out comes to train the neural network on. You do not even have one! Neural networks are totally impossible to apply to this unique problem - nothing to train them on.

Go back to saving the world by perfecting a next generation fusion reactor this weekend or jet off to India to help them with their nuclear reactor problems. I am not impressed by your many claims of expertise. I only see smoke.

 

"PetroEuro" is being uttered again (only by Iran and Venezuela, we are told) and I think it's increasingly in a context I tried to touch on earlier in this thread:

"Is the Dollar's hegemony not founded in international goodwill? Is the Dollar not a leading "brand" of money, facing new competition? And is monetary brand-loyalty not tied to geopolitics?"

Along these lines, I'm concerned that the most staunch OPEC defenders of PetroDollars (mot notably the Sa'ud dynasty) may be going further and further out on a perilous political limb over this. Kuwait and the Emirates are already slipping out of Dollar orbit. Maybe it's not just cold economics, but also political self-preservation, as identification with the USA is smelling more and more like old fish in Mideast perceptions.

Major US media desperately plays this issue down, but it stills seems one of the largest and wobblyest elephants in the room.

 

Don't the Sauds have a lot of investments in dollars? They won't do anything until they've covered their asses.

 

Whats the role of the Germans? I would have thought the Japanese to be a more likely candidate, Asians are more entrenched with notions of honor and revenge.

 

Sounds more like common business sense, the Germans are always pragmatic about financial matters and possibly saw no reason why they should not promote a currency that would give them something for nothing.

After all, their economy was in greater need of assistance, what with war debts and recompense, not to mention consolidation of East and West Germany.

 

Mideast Dollar divestment is on the agenda for discussion at the Doha Gulf Cooperation Council Summit next month. Saudi financiers seem to hold controlling shares in the US Dollar and economy. US leadership will have limited options in forestalling a collapse if they are double-crossed by them. The Saudi regime could be better off to make a break for it now, even while their public signals are saying the opposite.

 

I can't imagine the US would just sit back if they did revalue their currency.