OPEC is collapsing

Venezuela is trying to save its own "a rse " with this move. They just sold their largest amount of bitcoin to keep the wolves at bay. Citgo is the only source they have to bring large amounts of money into their hyper inflation state and I hate to see this happen but there is no stopping the wheels that have been put in motion. Its an imminent collapse or the (wind) power taken out of the OPEC sails.

https://www.ccn.com/bitcoin-trading-volumes-in-hyperinflation-struck-venezuela-hits-record-highs/ 

https://bitcoinist.com/venezuela-record-bitcoin-october/ 

This is a strange move for a country who is an oil powerhouse as it presented to the world.   

 

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2 hours ago, Brent Hamrick said:

Venezuela is trying to save its own "a rse " with this move. They just sold their largest amount of bitcoin to keep the wolves at bay. Citgo is the only source they have to bring large amounts of money into their hyper inflation state and I hate to see this happen but there is no stopping the wheels that have been put in motion. Its an imminent collapse or the (wind) power taken out of the OPEC sails.

https://www.ccn.com/bitcoin-trading-volumes-in-hyperinflation-struck-venezuela-hits-record-highs/ 

https://bitcoinist.com/venezuela-record-bitcoin-october/ 

This is a strange move for a country who is an oil powerhouse as it presented to the world.   

 

I'm not sure that Venezuela's collapse spells doom for OPEC. But Venezuela's collapse is almost complete, with oil production on a steady fall 

"A survey conducted by the Venezuelan Industrial Confederation found more than 200 industrial companies closed shop in the second quarter of 2018 while nearly half of respondents said they were working at around 20% capacity due to the lack of raw materials," according to WSJ. People are showing up to work in factories even after the companies have gotten the heck out of Dodge.

As Venezuela's crude oil production goes, so goes all of Venezuela @jose chalhoub

image.png.9d82e10bd4f47b14e3b10fc6a84076f1.png

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Tragic and sad.

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9 hours ago, Brent Hamrick said:

Venezuela is trying to save its own "a rse " with this move. They just sold their largest amount of bitcoin to keep the wolves at bay. Citgo is the only source they have to bring large amounts of money into their hyper inflation state and I hate to see this happen but there is no stopping the wheels that have been put in motion. Its an imminent collapse or the (wind) power taken out of the OPEC sails.

https://www.ccn.com/bitcoin-trading-volumes-in-hyperinflation-struck-venezuela-hits-record-highs/ 

https://bitcoinist.com/venezuela-record-bitcoin-october/ 

This is a strange move for a country who is an oil powerhouse as it presented to the world.   

 

Monopolies can work as long as there isn't competence, the problem of wanting to monopolize everything is that you need to control everything, i mean, yeah it can be done but is dificult,

OPEC was a powerhouse in the 70's to 2000's because they were the only countries producing oil in large ammount to export it, now you got a lot of countries that found oil or can try to develop shale oil, that means that any shortcut in production they try to make will be absorbed by alternative oil suppliers, and they will end loosing because when they try to recover the production lost they lower the price of oil

So yeah, OPEC is dead

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8 minutes ago, Sebastian Meana said:

So yeah, OPEC is dead

OPEC may not have as much clout as it did in the days of the embargo, but sounding the death knell is a bit premature. They are still able to swing oil prices, sometimes with mere words (or strategic "leaks"). Russia allied itself with OPEC for the production cuts not because OPEC was dead, but because it still has some teeth even if they're somewhat wore down. 

OPEC overplayed it's hand against US shale, for sure, highlighting it's diminished power, but dead it is not. 

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21 minutes ago, Rodent said:

OPEC overplayed it's hand against US shale, for sure, highlighting it's diminished power, but dead it is not. 

0fedd6b0716977aa5fd39b49c0a609a836a4a8d2c4d891c1d6abc01f365ac1a6.png

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52 minutes ago, Sebastian Meana said:

Monopolies can work as long as there isn't competence, the problem of wanting to monopolize everything is that you need to control everything, i mean, yeah it can be done but is dificult,

OPEC was a powerhouse in the 70's to 2000's because they were the only countries producing oil in large ammount to export it, now you got a lot of countries that found oil or can try to develop shale oil, that means that any shortcut in production they try to make will be absorbed by alternative oil suppliers, and they will end loosing because when they try to recover the production lost they lower the price of oil

So yeah, OPEC is dead

Only eight years ago I started out trying to figure out the best way we could solve the "energy crisis". Well, I learned a lot and finally realized that hydrofracking and horizontal drilling would soon solve the problem. I also found out that many powerful forces on the left including Russia and OPEC would do whatever they could to stop the technological progress in we were making. I then went to work defending fracking. I don't have to do that anymore. So, yes I hope OPEC is dead for good. I think that increased natural gas use, ethanol, propane, wind, solar, etc. can all help keep the price of oil down and national economies up. Of course, those who are overly dependent on oil and gas income will suffer until they can diversify.

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