Russia plans $40 a barrel oil for next seven years as Saudi showdown intensifies

Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 a barrel for another seven years.

Maxim Oreshkin, the deputy finance minister, said the country is drawing up plans based on a price band fluctuating between $40 to $60 as far out as 2022, a scenario that would have devastating implications for Opec.

It would also spell disaster for the North Sea producers, Brazil’s off-shore projects, and heavily indebted Western producers. “We will live in a different reality,” he told a breakfast forum hosted by Russian newspaper Vedomosti.

  • Kit Ingoldby

    Good. Cheap oil means less money for the Middle East and lower prices for the West.

    • Ain’t free enterprise great.

      There once was an oil cartel. Now after greedy businessmen tried to undercut the cartel, the cartel is toast and gas is back down to near $2.00 a gallon.

      • Kit Ingoldby

        Amazing what good things can come from ‘greedy businessmen’ when government just gets out of the way.

  • andycanuck

    And just think the one bright light in this of savings in gasoline prices here will undoubtedly be wiped out by the Clown Prince’s carbon tax!

  • simus1

    Cheap oil should be a huge shot in the arm for the world’s economy.
    The fact it has had little impact to date and storage sites are full to
    overflowing is a very bad sign. Combine that with supposedly low
    interest rates, record US government creation of debt and you are left scratching your head.

    • canminuteman

      The 73 cent dollar isn’t helping the price of anything in Canada. It’s like losing more than a quarter of your pay packet.

  • Brenda

    It’s at 35$ now and forecast to go even lower.

  • Spatchcocked

    Two can play the OPEC game… my Duke of Wellington said “hard pounding, let us see who can pound the longest”

    Let’s see how long the Soddies can rub along at 40$ a barrel when they need 100$ to run their kingdom.

    I foresee a little belt tightening…fewer executive jets…..perhaps a little civil unrest….fewer trips to Harrods and the blonde whores in merry olde….perhaps a LOT of civil unrest….

    Ah, what a wonderful dream…..and dreams can come true children!

  • canminuteman

    It will have a devastating impact on Canada too. The only bright spot in our economy was the oil industry. It’s not like it’s even going to help any other industry in Canada when the government brings in carbon taxes and cap and trade. Canada will sink into a depression, potentially as bad as Greece. The only advantage we have over Greece is the fact that we control our own currency and it can devalue to make us more competitive, but that makes your life savings evaporate. I’m going to stop contributing to my RRSP and buy a new fishing boat instead. Any money I put aside today could be worthless tomorrow anyway.

    • mauser 98

      the oil industry? Notley and the trust fund brat are doing best to wreck it
      now UN prostitutes at COP21 Paris orgy signed some BS deal scam …..more taxes

  • Waffle

    Seven years? Very biblical. Remember Joseph’s prophecy to the Egyptian pharaoh — seven lean years and seven fat years. . .

  • mauser 98

    why is gas still around 95 cents a litre ?.. should be 60 cents

    • terrence

      Gas is $1.179 in Vancouver, BC – TAXES, TAXES, TAXES. Even with the low dollar it is at least 40 cents a liter cheaper in Washington state. I always fill up down there; and buy excellent yogurt and kefir at Trader Joe’s in Bellingham – at about HALF of what I would pay for similar stuff here (even with the low CDN dollar).

      • mauser 98

        we will continue to bend over , grab our ankles and take it
        gas $1.62 per gallon in Michigan last week

      • David Murrell

        …and the anti-CO2 eco-nuts are advocating even further taxes on gasoline, to “make up” for the lower tax-excluded price.

        • terrence

          Anybody uninformed and/or STUPID enough to think that CO2 is a pollutant would love to see carbon taxes – especially if they are ALL paid for by OTHER PEOPLE; and they do think it will affect them – and it won’t if they do not eat, use the Internet, a cell phone, watch TV, etc…

    • John

      Yeah. When oil was close to 100$ a barrel gas was selling for $1.48 a litre in Montréal.

      It’s now below $40 a barrel but gas here is still selling for around $1.17 a litre. Even factoring in all the federal and provincial sales taxes the price should be well below a dollar a litre.

    • FactsWillOut

      Taxes, and regulations on who can build refineries.

  • Norman_In_New_York

    There is no reason why Russia, with its manufacturing base, can’t diversify its economy to produce quality consumer goods unrelated to petroleum.

  • ismiselemeas

    Canada will be fine in the long run I reckon. I’m really looking forward to watching the shit hit the fan in the ME though. The collapse of Saudi Arabia is going to initiate the biggest sand storm since Genghis Khan saddled a horse and rode out. The bright side is that there will be no minority cultures left to worry about so they should be left to go at it. Tens of millions of un educatable, inbred psychopaths eating each other alive. 3… 2… 1… Go!!