RUSSIAN $140 Billion Oil Disaster as Price Falls, Production Cuts & Sanction Discounts Hurt Russia

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Russia has experienced a huge fall in revenue from Fossil Fuels as a result of SANCTIONS, PRICE DISCOUNTS and FALLING PRICES. In this video I provide more details and look at the impact on both the price of Russian Oil and Russia's revenue and discuss the future impact on the Russian Economy.

For specific details please check out the CHAPTER list below.

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Chapters:
0:00 Intro
1:28 RUSSIAN FOSSIL FUELS
5:15 PIPELINE GAS
8:12 OIL
10:32 RUSSIAN OIL PRICE
13:20 CRUDE OIL PRICE CAP
17:48 REFINED OIL PRICE CAP
20:17 RUSSIAN TRADE PARTNERS
24:00 SUMMARY & CONCLUSION

#UKRAINE
#russia
#pricecap
#GLOBALFINANCIALCRISIS
#RUBLE
#SWIFT
#RECESSION
#CHINA
#USA
#NATO
#WW3
#WORLDWAR3

[markb]

Whoever came up with the price cap plan should get an award. Keep the oil flowing from Russia to keep the prices down but cut the flow of money into Russia. Well done!

[tullochgorum]

Russia's most profitable export was refined products, which mostly went to Europe. This market has been lost to the sanctions, as India and China have their own refineries and are only interested in crude. But because Russian production and transport costs are high by world standards, the price cap means that many sales of crude barely cover the cost of production. It enables them to keep the fields open - but profitability has fallen catastrophically. Couple that with the spiralling costs of the war, and they are running ruinous fiscal deficits. Informed voices inside and outside of Russia are warning that they are in danger of running out of cash within 9-12 months and becoming a failed state like Pakistan or Venezuela...

[tedferkin]

One point you missed about building the pipelines, it actually required external expertise to build those pipelines, it has little capability of doing that itself. Those countries that do have that technology are the same European countries that are sanctioning the trading with Russia, so Russia would have to learn how to build these pipelines, as well as construct them.

[captedlewis]

Thanks for the info, Joe. When possible, could you give an update on the status of Russian air transportation? What impact has the lack of replacement parts had? Thanks - Ed in Ohio

[mombaassa]

The inability to maintain high military costs, was a significant factor in the collapse of the Soviet Union. They still haven't learned.

[maggieliz]

I live by economic charts to understand the economics of the sanctions. Your channel is a tremendous help. Thanks from Oregon.

[cadebritt]

Thanks, Joe. Whenever things get confusing, you have the maps.

[jonahjonas]

Based on your other video that showed that wages in Russia were rising due to a labor shortage, it would imply that the cost to produce oil and other energy products will also begin to rise. They will be selling at a loss and may have to eventually cut production or raise prices.

[joelashdod]

Gross sales is not the right metric, you should be looking at net profit. It costs Russia about $40/barrel to produce. When oil was selling for $80 a barrel, $2/barrel shipping via pipeline to Europe for a profit of about $38/barrel. Shipping to China or India cost $12 to $15, so at $60/ barrel, net profit is between $5 and $8/barrel. That's the real story, profit is down 80%.

[Symmetry]

What puts a smile on my face is not the end... it is the whole video!

[SwiftRIBSAust]

Good vid. I would like to see a graphical cash flow analysis based on volumes / prices, and an extrapolation against cash reserves - THAT would be a great video 👍

[lucforand]

Russia also has a huge technical problem as if it can't sell its oil and gas, it will have to close down certain oil and gas wells as it can't store it. This is already happening! As a result thousands of jobs are being lost and certain wells may never reopen.

[raywhitehead]

Norway, Europes largest gas/oil producer announced an increase in production to begin soon due to expansion and more discoveries off its shelf. Announced July, 2023.

[davidc]

I must say... the video footage of a ladybug climbing on a snail did put a smile on my face. Thanks for the informative videos!

[AM-gyxg]

Thanks Joe Blogs for all your great content and the effort you put into all your videos.

[smb]

Some may gripe that you are repeating yourself but updates on important events, particularly the reason you started your channel (effects of Russia's invasion) are vital. They not only remind us of the history, our decisions (good and bad) but portend the future. Great job again.

[jiyushugi]

What about their tourism industry? In addition to the many formal employees there were also many thousands of free-lancers, part-timers, etc.

[Wwhite]

Brilliant video. Thank you. Good to get a confirmation that the sanctions are working.

[sylvainlafond]

What I would like to see in future discussion from you is the arms sale from Russia to the world. What were the sale before and what is it now???

[djj]

Was there any new material here? I'd welcome an update on air and auto industries, or the ways Russia is getting around sanctions.