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Price Of Oil At Five Year Low


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When Scotland's failed independence day comes in March 2016 and new record high oil prices are being reported, we won't hear a peep out of the unionists. Not a peep. Well, except that we're lucky to have the protection of the 'best armed forces in the world' from the terrible Russians after the beating they took 'from us' in 2015.

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Its really strange its like some of them really would like to see Scotland hammered to ensure we don't get ideas above our station again.

The reality is if we had been a normal country we would have just had to deal with this. Norway has had to dip into its oil fund a bit more and no doubt other countries big and small will deal with it in their own way until the price goes back up. Scotland would of course have been unique and we would be needing food banks on the streets of Milltimber and UN helicopters dropping Red Cross food and clothing to the masses.

The UK is currently losing money with the oil price how are they coping ???

The oil is a bonus and if, as some clever people have said,Scotland had set up an oil fund and put money away for a rainy day the drop could have been cushioned until the price went back up.

Are you sure about that bit?

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Are you sure about that bit?

Norwegian banks have already ran liquidity tests at a price of $35 a barrel for a year and still sitting alright. Everyone will have to dip into something for this.

Instead of point scoring the politicians should be making sure it's reflected at the pump the price drop, it's all they're good for these days.

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Norwegian banks have already ran liquidity tests at a price of $35 a barrel for a year and still sitting alright. Everyone will have to dip into something for this.

Instead of point scoring the politicians should be making sure it's reflected at the pump the price drop, it's all they're good for these days.

The reason I ask, is that I read some stuff a few years ago about the Norwegian oil fund. They have very strict rules as to how the fund is used. I think that thy are only allowed to spend 4% of the interest inside Norway in any year or something like that. In order to "dip into" it further would need a vote in parliament, I think. As you say I don't think they are near the stage where they need to do that yet. Lower revenues from lower oil prices will mean that less new money will go into the oil fund but that's not the same as dipping into it.

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Oil Fund. Even Mr Salmond's own Scottish government civil servants stated Scotland could not afford an oil fund at the present spending. So an oil fund would be delivered either by cutting public funding, raising taxes or even as John Swinmey said, borrowing. But nationalists continue to raise the mythical oil fund. Norway started off as a fishing economy and was far different from Scotland's industrial past which had to deal with fall out of deindustrialisation some of which was caused by those nationalist traits of looking into the past and navel gazing.

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Oil Fund. Even Mr Salmond's own Scottish government civil servants stated Scotland could not afford an oil fund at the present spending. So an oil fund would be delivered either by cutting public funding, raising taxes or even as John Swinmey said, borrowing. But nationalists continue to raise the mythical oil fund. Norway started off as a fishing economy and was far different from Scotland's industrial past which had to deal with fall out of deindustrialisation some of which was caused by those nationalist traits of looking into the past and navel gazing.

Yeah yeah yeah our oil fund would be rubbish of course. Pity we never got to find out how rubbish it would have been. Just think if we had started one 20 or 30 years ago you could have had even more fun telling us hopeless we are.

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We should have had 40 years of a oil fund tucked away by now for a rainy day.

Somebody made that point on BBC Morning Call yesterday.

He worked in the oil industry in the mid 80s when the price of oil dropped to $6 a barrel, there were many redundancies and a property crash in the North East. Energy secretary Peter Walker was saying the government would not support "lame duck industries" like oil had become.

It was clear at the time than an oil fund was needed to smooth the tide during dips in the industry which historically appear to be inevitable...

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The reason I ask, is that I read some stuff a few years ago about the Norwegian oil fund. They have very strict rules as to how the fund is used. I think that thy are only allowed to spend 4% of the interest inside Norway in any year or something like that. In order to "dip into" it further would need a vote in parliament, I think. As you say I don't think they are near the stage where they need to do that yet. Lower revenues from lower oil prices will mean that less new money will go into the oil fund but that's not the same as dipping into it.

I should have said i have no idea lol. I just know their banks have tested this and know they can maintain liquidity for a year at a lower price.

We'll see next to nothing of the benefits to prices for such cheap energy sources atm though.

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Oil Fund. Even Mr Salmond's own Scottish government civil servants stated Scotland could not afford an oil fund at the present spending. So an oil fund would be delivered either by cutting public funding, raising taxes or even as John Swinmey said, borrowing. But nationalists continue to raise the mythical oil fund. Norway started off as a fishing economy and was far different from Scotland's industrial past which had to deal with fall out of deindustrialisation some of which was caused by those nationalist traits of looking into the past and navel gazing.

Jeez, you sound like a Labour politician briefed by a student research assistant. It's great having opinions, but when they're just blind soundbites there's no credibility. How many states can you list that don't run a deficit and borrow? Did you know that the Norwegian fund started when they were running a deficit? And can you explain how deindustrialisation was caused by "nationalist navel gazing"? Bizarre statement.

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We can't build an oil fund apparently but westminster with a huge debt can plan to replace trident, build that crazy railway, and spend billions on London infrastructure. Fact is - Scotland currently gets only a fraction of oil . With independence we will always win - the price will have to go down an awful lot to do away with the advantage of the revenues being divided by only 5.3 million Scots as opposed to 63 million Brits.

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  • 3 weeks later...

Yup, depressing stuff. Guessing around 15-20% of the industry about to be made redundant..... Hopefully pick up at end of year, but the industry is hugely knee-jerk (I think this stems from large US involvement). It spends millions on redundancy, then even more on re-hiring and training when things turn around. Some would say it's a bit myopic, some would say it's a necessary optic.

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Interesting angle from a Peston interview on PM last night. The Saudis power in the oil market has diminished since the US increased internal supply from fracking. This downward spiral in price could be a deliberate attempt by the Saudis to force a lot of fledgling businesses in the US out of business. Apologies if this has already been covered.

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