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The coming oil supply cuts (and the resultant rise in the oil price) is going up is going to create a global economic disaster. Just sayin'.

The coming oil supply cuts (and the resultant rise in the oil price) is going up is going to create a global economic disaster. Just sayin'.

The price of oil going up is going to create a global economic disaster.

The price of oil going up is going to create a global economic disaster.

The price of oil going up is going to be an economic disaster. I vote for raising global oil production to maintain and raise people's standard of living. You are selfish if you think the billions of poorer people don't deserve to live a nice cushy life like you do with a two houses, four cars, a helicopter, a yacht, and several jacuzzis dotted about your sprinkled lawn.

What I want to see is a rise in global oil production. It will lift the average global standard of living. It will lead to a bettering of billions of lives on this planet.

Also it could be UK companies were badly run and let costs get out of control. Either way I agree everyone made a lot of money except for the shareholders who lost hundreds of billions across the oil sector as a whole. Crazy policies and decisions by Central Banks caused the biggest transfer of money from law-abiding pensioners to spivs and charlatans in economic history. Now wonder the economy is fooked and everyone hates politicians and central bankers and perhaps even bankers in general (although not all are bad but some are definitely making financial decisions when they can not see the wider consequences on the economy as a whole which will come back to bite them in just a couple of years time).

Institutional investors must receive a lot of info that others don't (or at least get the info first), seems like they can destroy a lot of hardworking people's pensions and yet the directors still get paid millions.

All I can say is the City is a disgrace given the number of companies with great resources going bankrupt with little warning. Afren made the 3rd largest oil discovery in the world in 2014 and opened up a new play type / new basin offshore Nigeria towards the North. Yet by early 2016 the directors had walked away with $400 million, service companies had taken over $1,500,000,000 for easy shallow-water developments, and shareholders lost over $2 billion in equity in just over 9 months.

I highlight Afren as it was in the oil sector, but there has been a wholesale attack on private shareholders by the City of London/Bank of England since 2008. The number of companies where everyone involved (directors and other businesses providing b2b services) have taken huge chunks of money, and sharheolders have faced 100% losses, is truly economy warping.

Thank you, congratulations to the Bank of England, The City, The Fat Cats, The Directors ...you are a dishonest bunch of crooks who continually attack the ordinary shareholder and favour legalised money printing by everyone else (bondholders, directors, b2b services, and anyone else with their snout in the trough).

No wonder the National Debt is $1,500,000,000,000 and nobody trusts the value of money anymore - it has been hyperinflation for many as so many good financial assets have been pillaged by a few privileged spivs since 2008. It may not be entirely Central Bankers fault but they should try and sort the mess in the City out .... otherwise trust in the value of money will never return and that means the economy will just become slower and slower ... lowering interest rates will just make things worse not better as the root cause of the problem is too much corruption ...more cheap money is just going to temporarily mask/hide the underlying problems and when the ship is holed below the waterline that is the last thing the Captain should do.

The point is Hur and Pmo both produce oil. That's why there are comparable - it is like comparing two apple trees (which produces the most fruit for the least man hours needed to look after them). That's the main point.

(As an aside oil is what I need to maximise the global production of in order to minimise the personal cost of going on holiday - as I like to fly and then drive around Africa in a reliable modern diesel-engined truck).

Maybeayermaybenaw,

I will state it as simply as possible. The financial system is based utility. We understand what products/activities/relationships maximises individual utility (or personal happiness) and then we compute how to produce as much utility as possible for the lowest possible cost (in order to allow more people to go on more holidays which benefits their happiness someone has to do something they don't like doing for a while). Ergo to maximise happiness on Earth you always want to go ahead with the most economically attractive projects. For example if there is an oil field which holds 1 billion barrels, and there is one which holds 0.1 billion barrels. And if getting all the oil out of either would take 3 oil rigs and 16,000 man hours from the crews then clearly you would always choose to develop the 1 billion barrel oil field and leave the other one for later (maybe until technology lowers the number of man hours needed to extract the oil).

Actually Maybeayemybenaw - Oxo42 has one of the seats already reserved on our private jet. You people with vested interests in the green brainwashing project are pretty easy to spot. Ultimately you will fail because you only exist because your parents were economically rationally which enabled them to survive previous wars and other periods of social upheaval - if you don't provide everyone with the basics of a good life (a house, a car, holidays) then you will fail to attract much political support. Ergo the Greens got 1 seat because banning natural gas does not improve anyone's life really. I'm just frustrated that I can't understand how the lack of economic rationality has proliferated during the past decade to the point where it has severely slowed down the development of many new oil projects and the net result is global poverty has increased (something which the Greens never acknowledge to be their fault).

You are wrong Maybeayemaybenaw,

Money is infinitely comparable which is how the financial systems maximises both growth and happiness on planet Earth.

Everything needs to be constantly compared - oil sells for a single price the world over - it is worth as much to an Amazonian tribesman as to a tank driving General and his harem of beauties in Russia. Ergo financial trading (assuming everyone acts completely rationally) always forces companies to prioritise the best projects and the best options for growth. Ergo maximisation of your own happiness as well as mine. Yes, even though you have more to learn, I want you to be happy. It has taken me decades of tireless thinking to construct a completely rational and permanently ecstatic model of my own personal universe - come and join me please as I have done the hard work already!

You guys are a big help to me - thank you. Yes I agree. Totally predictable that High Speed Rail costs would spiral out of control before it had even begun. Also totally predictable that America would run up huge debts and then offer it's creditors a deal based around war (that way you only have to pay half your creditors back at most).

But can I just put in a good word for Sea Lion (the Rockhopper / Premier Oil oil development project in the Falklands). It is not the UK citizens who asked to be made poor by the stupid UK politicians who have let basic economics spiral out of control (it doesn't make sense for Wayne Rooney and Ronaldo to earn £15 million a year when the entire stock in my local Tescos probably costs less than £3 million). What if Wayne Rooney turned up with a few HGVs and emptied the whole store just to **** off someone who he knew was coming half an hour later to buy something just-in-time for tea?

So personally I feel the UK is happy to give everything away to anyone else in the name of doing good - well it doesn't do any good. Those people just use it to gain their freedom and then they press on with making themselves richer. Look at India and Australia doing a massive trade deal around coal - Australian coal to be exported on the largest scale in history to India and Australia will benefit from as much rich, spices, mangoes, takeaway/restaurant staff, and customer service agents as they can possible have need for over the next twenty five years.

So for cryin' out loud, for once, get the oil out, sell it on the global market, and divvy up the profits across the UK by investing the proceeds in resurfacing the roads and building a rail link direct to Ireland. With the money left over use it to improve agricultural productivity and shorten food supply chains so that restaurants actually have some decent ingredients to work with so that they can stop charging a fortune for some industrial mass-produced blancmange. But wait - with inflation, the UK debt out of control, and the clueless government, if there hadn't been a huge deterioration in the quality of textile goods, leather goods, and roads, then the consequences of their brainless economics would have shown up in these areas (in the prices or just the number of potholes) rather than only in all these other areas, the cost of private medical care, the out-of-control cost of housing (why should a small apartment in the suburbs cost £320,000 - I mean if Wayne Rooney wasn't earning £15 million per year who else would spend £320,000 on a two-bedroom 3rd floor apartment in a converted office block on the edge of Guildford?), and the cost of cigarettes and alcohol (although I am a non-smoke I don't believe in hyperinflation affecting any product although I recognise the harm that cigarettes do).

Now the talk on here is of a middle east conflict spiralling out of control, dragging in allies of Iran such as Russia and China and turning into World War III. What a way to spend a Sunday afternoon. I truly wish I was eating a pulled pork and mustarn bap on the Transpenine express or installing some new leather sets in my private jet at a small airfield in Sussex.

Not that a private jet may be able to fly to many places if WW III breaks out.

Trans Pennine express and West Sussex sound wonderful to me. Glad there is such a cracking bunch on here. I learn so much about everything. Happy New Year!

Central Bankers in the EU have caused the economic meltdown themselves to a large extent. When the oil price started rising in 2006 they ought to have subsidised ethanol production from crops and then citizens would have looked into adding ethanol to their petrol (as ethanol would have been cheaper) and the car manufacturers would have responded by producing engines that could run on 50% ethanol and 50% petrol.

Ergo the oil price would have fallen far quicker (in 2-3 years, instead of 6 years) and hence there would have been 2-3 years of extra genuine economic growth, instead of the continuing recession in manufacturing, textile production, travel, leisure, hospitality, infrastructure, logging, and physical consumerism experiences (compared to online shopping).

The only real genuine growth (adjusted for true monetary inflation and not the "massaged" figures) from 2011-2014 was in wars, electronics, and things which don't make citizens any happier (Bitcoin, sports betting, Twitter, and algorithmic reality creation such as CGI combined with personality algorithms to make fake users on social media, Facebook, and online dating sites).

Personally I think going out to a shopping mall is more fun than looking at an online shopping site. I'm very disappoint that Debenhams is going to close more stores. Who agrees that going out shopping to a mall or retail park is a more socially rewarding experience than browsing items on an LCD screen?

The Inglorious EU - the collapse of the Roman empire lead to the largest period of economic destruction (as a percentage of the economy) ever recorded (apart maybe from the black death in the middle ages). However, one was purely a self-inflicted economic collapse due to poor economic decisions from higher ranking officials - the other was caused by disease.

Central Bankers in the EU have caused the economic meltdown themselves to a large extent. When they oil price started rising in 2006 they ought to have subsidised ethanol production from crops and then people would have added ethanol to their petrol (as ethanol would have been cheaper) and the car manufacturers would have responded by producing engines that could run on 50% ethanol and 50% petrol. Ergo the oil price would have fallen far quicker (in 2-3 years, instead of 6 years) and there would have been 2-3 years of extra genuine economic growth instead of recession in manufacturing, productive, travel, leisure and hospitality. The only real genuine growth (adjusted for true monetary inflation and not the "massaged" figures) from 2011-2014 was in wars, electronics, and things which don't make citizens any happier (Bitcoin, sports betting, Twitter, and algorithmic reality creation such as CGI combined with personality algorithms to make fake users on social media, Facebook, and online dating sites).

Yes but the EU and UK brought in on themselves. They used up the North Sea oil when they ought to have been using oil from the Middle East like the USA. The USA always knew the oil price would bring the global economy to its knees at some point and that's why they kept 20 billion barrels in reserve in the Permian basin in Texas. The master plan from the 1970s was to use other people's oil whilst it was cheap, then to use the Permian basin, and then to go electric. The UK government never really had a strategy - naively believing markets were out to help the government rather than just to enrich themselves. Hence the UK used up most of its North Sea oil too quickly and never had a plan for what it would do once it started running out. Ergo the oil price spike in 2008, and the high oil price from 2009-2014, was far worse for the UK economy than for almost anywhere else on Earth. America is no involved in Guyana and they realise it will takes decades to fully switch to electric. Ergo Guyana will be producing 750,000 bopd by 2024, most of it for export to the USA. Also their oil companies (e.g. Exxon, Chevron) will continue to heavily invest in the best (largest and cheapest) oil extraction projects wherever they happen to be in the world (as the US military is the most powerful and if you don't agree to the price the Federal Reserve decide upon you can expect your government to be overthrown by one means or another).

Well at least I know a lot of posters on here are either disingenuous or are genuine fools. Back in 2011/2012 wise heads were telling people this was not worth a fraction of £16 per share and that it would be smart to be short. They were right just as I thought they would be. The only bad thing about markets is that this share got anywhere close to £16 - it is that type of irrational pricing which destroys the public's confidence in markets and in Central Banks to oversee their pensions.

Also oil should never have hit $27 back in 2016 because rational people would have literally bought a shed load at those prices knowing that it was unsustainable to produce 156 litres of oil (one barrel) for just $27 - never mind natural wastage, transport costs, uninsured losses, and paying back the original debt, plus amortisation of the physical assets. So if every family in the UK bought a shed load of oil when it was below $30 per barrel (at least 50% below the average break-even cost of production) then logically it would never have even reached that price in the first place.

Central Bankers destroyed so many people's pensions when they brought the oil price to its needs (the number of shareholders who got wiped out would of been in the tens of millions and the equity in the hundreds of billions). Yet what have central bankers achieved - a Porsche 911 reconditioned, engine upgraded, with tinted windows, is way cooler than a TESLA and when you are cruising for ladies yo need a kool car lads! Boot the geeks out as the TESLA looks shyte and more importantly it sounds shyte and I miss the smell of burning petrol as well. Acceleration is good but top speed and range are shyte. Bet you don't get a date with a hot-blooded woman if you drive a Tesla and support central banks manipulating the economy to tilt the financial playing field in favour of technologies which the majority of citizens never wanted to see become mainstream (thankfully they are a long way off from being mainstream yet).

Also oil should never have hit $27 back in 2016 because rational people would have literally bought a shed load at those prices knowing that it was unsustainable to produce 156 litres of oil (one barrel) for just $27 - never mind natural wastage, transport costs, uninsured losses, and paying back the original debt, plus amortisation of the physical assets. So if every family in the UK bought a shed load of oil when it was below $30 per barrel (at least 50% below the average break-even cost of production) then logically it would never have even reached that price in the first place.

Central Bankers destroyed so many people's pensions when they brought the oil price to its needs (the number of shareholders who got wiped out would of been in the tens of millions and the equity in the hundreds of billions). Yet what have central bankers achieved - a Porsche 911 reconditioned, engine upgraded, with tinted windows, is way cooler than a TESLA and when you are cruising for ladies yo need a kool car lads! Boot the geeks out as the TESLA looks shyte and more importantly it sounds shyte and I miss the smell of burning petrol as well. Acceleration is good but top speed and range are shyte. Bet you don't get a date with a hot-blooded woman if you drive a Tesla and support central banks manipulating the economy to tilt the financial playing field in favour of technologies which the majority of citizens never wanted to see become mainstream (thankfully they are a long way off from being mainstream yet).