“Putin & Oil”.. An article by Ali Doğan, a former top executive and an opinion leader
Dear Friends,
As I wrote months ago, falling oil prices are gradually bringing PUTIN to his knees.
Ruble has almost turned into a worthless piece of paper, inflation has skyrocketed, debts have come to a deadlock and due to embargos, “shortages and unbearable cost of living” are strangling the Russian citizens by all means.
The Russian government has announced they are to implement a cut in budget. They have also realized they would not be able to swallow Syria on their own. Now it is most likely Putin’s fall will accelerate and in fact he may have to step down (somehow) as I have mentioned earlier.
Russia’s oil production cost is known to be US Dollars 28 at a time when oil prices have already fallen below USD 30. Besides the USA and Western block countries have withdrawn their giant companies of high oil technology from Russia. This means Russia can neither produce larger quantities nor can this country realize production at similar cost ranges and would have to bear higher production costs.
Putin’s plan was “I already have control over Asian oil transportation lines. I should enter Syria and get hold of Middle Eastern oil transportation lines as well and launch a counter attack”. However it did not work out.
An engineer in the USA has put his signature under a major technologic discovery to start the era of shale gas, terminating the era of oil as the dominant energy source. Moreover hybrid vehicles and introduction of hydrogen energy in the vehicles sector have terminated the indispensable importance of oil energy severely. So the time may have come to say goodbye to oil, farewell to Putin and Russia and certainly to Arab petro-dollars.
Reputable research establishments forecast that Russia and Saudi Arabia are to go bankrupt in one year and five years respectively. I personally agree to this statement. The reason is these single-source economies – which we call C-Economies meaning they are dependent on carbon/oil – will collapse under these newly emerging conditions. At first, we all considered “oil game” to be a tool to implement political pressure. We thought the Western world was pulling down oil prices deliberately to tame naughty boys like Iran, Russia and Venezuela of Chavez. However it was soon understood the reality was different and much bitter for the world and the moreso for Russia and Putin in specific, as explained above.
Ali Doğan
former CEO and OPINION LEADER
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