TheBeastie
1 MW
So if you haven't been reading the headlines lately the price of oil per barrel is hitting new lows that we haven't see since the GFC, below $70 a barrel depending on the type.
http://www.nasdaq.com/markets/crude-oil.aspx
One thing I realized though is compared to iron ore per ton the oil market comparatively makes a killing. According to wikipedia or general calculations 1 ton of oil is about 6.5 barrels of oil.
http://en.wikipedia.org/wiki/Barrel_%28unit%29
The largest mining company in the world BHP is selling iron ore per ton on the spot market is about $80 per ton it has slid down from $114 from 6 months ago (and now probably $70).
http://www.indexmundi.com/commodities/?commodity=iron-ore
So if the crude oil guys were selling it by the ton like miners then it would be $70 x 6.5 = $455.
And the reality is oil is easier to get out of the ground as its just pumping instead of digging.
Funny thing is that China was said to be so upset about the price of iron ore per ton that the Chinese government authorized hacking into BHP and Rio-Tinto networks to spy on the executives and see what they could find out.
http://www.bloomberg.com/news/2010-04-19/rio-tinto-bhp-billiton-fortescue-hit-by-china-computer-hackers-abc-says.html
http://www.abc.net.au/4corners/stories/2013/05/27/3766576.htm
Interestingly there has been a bunch of stories about this from ABC but never ever a single story about it from the AU commercial TV stations, I believe if there is even %1+ chance of a Chinese company buying your TV station then broadcasting such stories are a definite no-no.
Anyway for Australia the taxing of mining companies for iron ore of the last 8 years has been a big windfall the government even if the price per ton is arguably crappy compared to crude oil.
The price of these commodities have the ability to make and break governments in countries around the world. Some attribute the collapse of the Soviet Union in the late 80s / early 90s was due to the 1987 stock market crash which brought down the price of crude oil along with it sucking money out of Russia's budget.
*edit*, Originally didn't want to say it, but since the start of the oil price drop there has been a demon inside me hoping it will destroy Putin, signs are now possible this could happen. Unfortunately I do see the fact you can't hurt Putin without hurting a lot of innocent Russians.
Australia with iron ore is in same boat, originally spending 50 bilion USD on a fiber to the home network seemed to some quite doable but now is looking a tough goal.
Anyway what am I saying about all this? I dunno exactly I just mostly thought it was worth pointing out and maybe I am just saying welcome to our world!
Putting in "welcome to my world" in google I picked two of the most appropriate images, and an extra one I am a tad hesitant on.
http://www.nasdaq.com/markets/crude-oil.aspx
One thing I realized though is compared to iron ore per ton the oil market comparatively makes a killing. According to wikipedia or general calculations 1 ton of oil is about 6.5 barrels of oil.
http://en.wikipedia.org/wiki/Barrel_%28unit%29
The largest mining company in the world BHP is selling iron ore per ton on the spot market is about $80 per ton it has slid down from $114 from 6 months ago (and now probably $70).
http://www.indexmundi.com/commodities/?commodity=iron-ore
So if the crude oil guys were selling it by the ton like miners then it would be $70 x 6.5 = $455.
And the reality is oil is easier to get out of the ground as its just pumping instead of digging.
Funny thing is that China was said to be so upset about the price of iron ore per ton that the Chinese government authorized hacking into BHP and Rio-Tinto networks to spy on the executives and see what they could find out.
http://www.bloomberg.com/news/2010-04-19/rio-tinto-bhp-billiton-fortescue-hit-by-china-computer-hackers-abc-says.html
http://www.abc.net.au/4corners/stories/2013/05/27/3766576.htm
Interestingly there has been a bunch of stories about this from ABC but never ever a single story about it from the AU commercial TV stations, I believe if there is even %1+ chance of a Chinese company buying your TV station then broadcasting such stories are a definite no-no.
Anyway for Australia the taxing of mining companies for iron ore of the last 8 years has been a big windfall the government even if the price per ton is arguably crappy compared to crude oil.
The price of these commodities have the ability to make and break governments in countries around the world. Some attribute the collapse of the Soviet Union in the late 80s / early 90s was due to the 1987 stock market crash which brought down the price of crude oil along with it sucking money out of Russia's budget.
*edit*, Originally didn't want to say it, but since the start of the oil price drop there has been a demon inside me hoping it will destroy Putin, signs are now possible this could happen. Unfortunately I do see the fact you can't hurt Putin without hurting a lot of innocent Russians.
Australia with iron ore is in same boat, originally spending 50 bilion USD on a fiber to the home network seemed to some quite doable but now is looking a tough goal.
Anyway what am I saying about all this? I dunno exactly I just mostly thought it was worth pointing out and maybe I am just saying welcome to our world!
Putting in "welcome to my world" in google I picked two of the most appropriate images, and an extra one I am a tad hesitant on.