Posts Tagged ‘gas’

Moldova does not know who should get the money for the gas!

Thursday, January 22nd, 2009

The Moldovan people do not know whether the gas received by Moldova during the gas crisis must be payed to Ukraine or to Russia. Therefore, they did the logical thing: decided not to pay for the moment. ;)

Note:
This is not filed under the Jokes category!

Note:
Comments are no longer allowed on this post. Looks like it is the only way to stop the spammers.

Putin shows he’s the greatest

Wednesday, January 7th, 2009

Today, the Russian prime minister asked, in front of cameras, the gas distribution through Ukraine to be halted. The move proves there are political reasons behind the crisis.

Putin has shown that “he’s the greatest” and can make, in a blink of an eye, decisions that affect millions of people. A double message was sent. The first one is addressed to the world and states that Russia is an important player. The second message is addressed to the Russians and shows that Putin is still the most powerful person, despite the fact he is no longer president.

Less gas for Balkans

Tuesday, January 6th, 2009

Today, it was announced that the Balkan countries that import Russian gas did not received the agreed amount of gas. There was no reaction from the European Union, because countries like Bulgaria and Romania do not really matter.

A few hours later, it was reported that Germany starts to have problems and now the European Union considers that the situation is unacceptable. Isn’t that funny? :)

No gas for Ukraine

Thursday, January 1st, 2009

Russia announced it sopped delivering gas to Ukraine. It looks like the two parties did not reach an agreement for the gas price.

Since Russia asked for a lot more money, there are strong suggestions there exist political reasons behind this crisis.

Anyway, we have a market economy. I guess Ukraine is allowed to buy gas from elsewhere… ;) Unfortunately, there are no other reliable vendors.

Russia has a strong position in this matter and is able to dictate. Probably, soon enough, other countries will start having big problems with Russia!

Oil Prices and Gas Prices

Friday, November 21st, 2008

It makes sense the gas price to rise when oil price rises and to drop when oil price drops. But, it looks like people do not want to understand that the gas price increase / decrease cannot be directly proportional to the oil price increase / decrease.

Oil price has now dropped below 50 USD a barrel from a 147 USD high (almost three times). There are people who are asking why the gas price hasn’t drop three times and complain about it. They tend to forget that, when the oil price rose, the gas price did not rose proportionally. At that time, they complained about the gas price rise, but they did not think it might get worst.

On the other side, the gas vendors are not fair either. Let’s suppose that, at some moment in the past, the gas price was X and the oil price was Y. During a period of time the oil price moved to Y + y; for this reason, the gas price moved to X + x (as mentioned, we have y / Y > x / X). When the oil price dropped back to Y, the gas price only dropped to X + xx (xx < x, but xx > 0). Therefore, even if the oil price is now the same as it was some time in the past, we now pay for gas a little bit more than we payed at that time.

The conclusion is, that oil and gas prices do not move in sync, but when oil price rises, gas price quickly rises too and when oil price drops, gas price does not drop as quickly as they rose :)

We should not expect that, if the oil price returns to a certain level, the gas price will also return to the same level. Fair? I do not think so! To be expected? Certainly!