Oil Price Rise Causes Global Shift in Wealth (IraN, Russia, and Venezuela)

Source: wash post



Oil Price Rise Causes Global Shift in Wealth
Iran, Russia and Venezuela Feel the Benefits

By Steven Mufson
Washington Post Staff Writer
Saturday, November 10, 2007; Page A01

High oil prices are fueling one of the biggest transfers of wealth in history. Oil consumers are paying $4 billion to $5 billion more for crude oil every day than they did just five years ago, pumping more than $2 trillion into the coffers of oil companies and oil-producing nations this year alone.

The consequences are evident in minds and mortar: anger at Chinese motor-fuel pumps and inflated confidence in the Kremlin; new weapons in Chad and new petrochemical plants in Saudi Arabia; no-driving campaigns in South Korea and bigger sales for Toyota hybrid cars; a fiscal burden in Senegal and a bonanza in Brazil. In Burma, recent demonstrations were triggered by a government decision to raise fuel prices.


High prices have given a boost to oil-rich Alaska, which in September raised the annual oil dividend paid to every man, woman and child living there for a year to $1,654, an increase of $547 from last year. In other states, high prices create greater incentives for pursuing non-oil energy projects that once might have looked too expensive and hurt earnings at energy-intensive companies like airlines and chemical makers. Even Kellogg's cited higher energy costs as a drag on its third-quarter earnings.



Read more: http://www.washingtonpost.com/wp-dyn/content/article/2007/11/09/AR2007110902573.html?nav=hcmodule

those are the major oil-producing countries which are demanding payment for oil in Euros.

would you want to paid be for anything in a currency which was loosing its value if there was an alternative currency which was sustaining its value ?

Apart from that in the absense of the petrodollar recycling system the USA wouldn't be able to print unbacked money willynilly to fund wars.

what the fuck does that mean? even krispy keme, even gillette. even budweiser.

Alaskans have a "Permenant Fund". It is worth over forty billion dollars and is their bank account or savings account if you will. Although it began from oil investments some thirty years ago oil is no longer the facter in determining the dividends. They are determinied by how much earnings the "Permenant Fund" produced over the previous year and in fact it is an average of over five years and not just the previous year. I believe a portion of that fund is invested in foreign currency and foreign companies. The dividends are determined by how much interest is earned not anything at all to do with how much oil is sold unless of course some of their investment are in the oil industry which I believe they are. IMO this is another example of a falsehood being told as truth..
"High prices have given a boost to oil-rich Alaska, which in September raised the annual oil dividend paid to every man, woman and child living there for a year to $1,654,"

It is in no way an oil dividend anymore than my personeal savings account is..but since when does the Wash Post tell it like it really is?

Are you Freepers out there getting this. Of course not.

the pump makes me wonder when the violence spreads to other countries around the world.
snip
anger at Chinese motor-fuel pumps ....new weapons in Chad ....no-driving campaigns in South Korea
In Burma, recent demonstrations were triggered by a government decision to raise fuel prices.
snip

I read through the 1st paragraph, and then had to go back and re-read it.

"$4 to $5 billion more per day than 5 years ago".
"$4 billon MORE?
More than what?

This figure creates a lot more questions than it answers. We, as oil consuming nations are truly screwed.