• 3 minutes War for Taiwan?
  • 7 minutes How China Is Racing To Expand Its Global Energy Influence
  • 10 minutes Is it time to talk about Hydrogen?
  • 42 mins U.S. Presidential Elections Status - Electoral Votes
  • 1 hour Mail IN Ballot Fraud
  • 5 hours “Cushing Oil Inventories Are Soaring Again” By Tsvetana Paraskova
  • 1 day Michael Moore Cranking Up Planet of the Humans Again
  • 2 days Locked Thread on the election
  • 13 hours Censorship in USA
  • 2 days British PM Eyes Banning Gasoline and Diesel Car Sales
Has Asia Lost Interest In North Sea Oil?

Has Asia Lost Interest In North Sea Oil?

North Sea oil producers say…

COVID Forces Exxon To Slash Oil Price Forecast

COVID Forces Exxon To Slash Oil Price Forecast

Exxon, which does not publicly…

Canada’s Oil And Gas Sector Sees Record Job Losses

Canada’s Oil And Gas Sector Sees Record Job Losses

The pandemic-driven oil demand crash…

Editorial Dept

Editorial Dept

More Info

Premium Content

The Oil Nations On The Brink Of Collapse

Global upheaval is likely to result from the oil price crash, upending the current fragile balance of power because key oil-producing countries, including Iraq and Nigeria, can’t buy their way out of this crisis with near-zero-interest loans like the Saudis and Americans can.

Even with Brent at $25 (indeed, even when it fell below $20), the Saudis were throwing around cash at all kinds of investments, including COVID-sinking cruise lines. The American shale patch can bail itself out if it wishes to, even amid desperate talk of looming bankruptcies. But in Nigeria, where oil comprises about 9% of GDP and 90% of exports, and with a break-even price of around $57 a barrel (with a fiscal breakeven of around $100), the economy is in serious trouble. If the economy is in trouble, the government is in even bigger trouble. Roughly 20 million people are unemployed, and that is now expected to climb another 25%. It’s enough to bring down a government, with the only lifeline now a $3.4-billion IMF emergency loan just approved. But making matters worse is the fact that no one even wants to touch Nigerian oil right now because there isn’t enough demand for it--even at $10 a barrel. And it’s competing with overproduced U.S. crude (light and low in sulfur).

In Iraq, the fragility will translate into a boon for the Islamic State first and foremost, while Iran and the United States grapple for control in this proxy war setting. Massive political and social…





Leave a comment
  • Shyam Mohan on May 03 2020 said:
    Time has come to say goodbye for the oil-industry, which has jeopardized the very survival of human race. More importantly, Saudi Arabia, which has radicalized people all over the world with supplying petrodollars, will no longer be able to do so. And most importantly, the likelihood of survival of civilizatios has grown manifold.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News