How then, do we move backwards? How does a society, with most of the people having no clue of future events, move from being dependent on a vast and intertwined network of goods and services produced by the indigenous people of whereever, to a local resource and renewable energy based society, and do so in the timeframe available (20-30 years using the most liberal extimates, 10-20 with resonable estimates, 5-10 with worst case scenarios), all the while prices on everything increasing, world politics getting more militaristic, governments continuously reducing civil liberties, shortages of goods on the market and weather patterns resembling bad Hollywood movies?
Posted: Sat Jul 05, 2008 8:30 pm Post subject: S. Korea to cut oil tax if oil hits $170
S. Korea to cut oil tax if oil hits $170
Quote:
The plans follow a 10.5 trillion won ($10.01 billion) package introduced last month to ease the financial burden of high oil prices on low-income individuals and self-owned businesses.
Quote:
The government said last month it would come up with extra contingency plans, including a cut in oil taxes, if Dubai oil tops $170 a barrel.
Joined: Dec 18, 2004 Posts: 4027 Location: One Mile From the Columbia River
Posted: Sat Jul 05, 2008 8:40 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
Hogan wrote:
S. Korea to cut oil tax if oil hits $170
Quote:
The plans follow a 10.5 trillion won ($10.01 billion) package introduced last month to ease the financial burden of high oil prices on low-income individuals and self-owned businesses.
Quote:
The government said last month it would come up with extra contingency plans, including a cut in oil taxes, if Dubai oil tops $170 a barrel.
Posted: Sat Jul 05, 2008 8:48 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
Right. Asian countries will have to continue subsidizing fuel and oil if they don't want a major economic downturn. We may see a slow in oil consumption growth in China, India, and elsewhere. But I don't think there will be enough demand destruction to offset oil field depletions.
Joined: Aug 23, 2004 Posts: 321 Location: New Zealand
Posted: Sat Jul 05, 2008 8:52 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
This is not a subsidy they are backing off, it is a tax. Oil will become cheaper in South Korea. The price is artifically inflated to decrease demand ahead of PO.
Such hedges allow countries to mitigate the fast onset of PO. The States never had a tax or anything. The States only have the SPR which could be used for the same thing, to keep effective US prices below $150 for six months.
Posted: Sat Jul 05, 2008 9:13 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
Here's another article:
Quote:
South Korea's government announced plans Sunday to implement additional measures to tackle the impact from rising oil prices on the economy as higher fuel costs are still not helping decrease demand.
Joined: Oct 23, 2004 Posts: 5328 Location: New Jersey
Posted: Sun Jul 06, 2008 8:29 am Post subject: Re: S. Korea to cut oil tax if oil hits $170
Contrary to many predictions I recently heard from main stream economic analysts, the gross amount of subsidies around the world are increasing as the price of energy rises.
Most people in the world would have their lives significantly disrupted by paying twice as much for energy as one year ago. Almost all countries, no matter how much they believe in 'free markets' will increase their subsidies to avoid protests, strikes, riots, etc. That includes the US, where I expect the first rebate program will be followed by a second - this year - more specifically targeted to those most effected by higher energy prices. _________________ It's already over, now it's just a matter of adjusting.
Joined: Oct 23, 2004 Posts: 5328 Location: New Jersey
Posted: Sun Jul 06, 2008 3:54 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
idiom wrote:
Reckon this will be followed by headline like "U.S. to open SPR if Oil hits $170"" No matter how bad an idea that is?
Probably.
SPR was authorized by Congress to be used only in the event of physical disruptions to the oil market. That would seem to include hurricanes, blocked shipping channels, etc. However Congress changed its own rules this year by not allowing the SPR to be refilled (except by payment of oil royalties from the GOM).
So it's quite possible that Congress could vote to release the SPR before the elections. It's also possible that would have a significant - though short lived - negative impact on the price of oil. _________________ It's already over, now it's just a matter of adjusting.
South Korea's June Crude Oil Imports Drop 6.1%; Cost Jumps 71%
By Shinhye Kang
July 1 (Bloomberg) -- South Korea, the world's fifth- biggest crude oil buyer, imported 6.1 percent less of the fuel in June as prices rose from a year earlier.
Imports dropped to 66.4 million barrels last month from 70.7 million barrels a year ago, the Ministry of Knowledge Economy said in an e-mailed statement today. The import bill increased 70.5 percent to $8.25 billion in June because of higher oil prices.
Crude-oil imports in the first half of this year fell 1.2 percent to 433.8 million barrels, the ministry said.
That comes to 143,333 fewer bpd in demand. Or at least in imports. But since South Korea has basically no oil production, that should be a pretty close surrogate to actual demand, unless they've started importing large quantities of refined gasoline and diesel. _________________ Abundance - what a concept!
Joined: May 10, 2007 Posts: 2613 Location: The Entropisphere
Posted: Sun Jul 06, 2008 6:17 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
OilFinder2 wrote:
Sorry to say, but oil demand in Korea is a bit more elastic than you think.
or not?
Crude inventories in S. Korea,
Quote:
SEOUL, June 20 (Reuters) - South Korea's commercial crude inventory fell nearly 37 percent by end-May from a year ago as high oil prices continued to discourage refiners from making new purchases, state-run Korea National Oil Corp (KNOC) said Friday.
South Korea's four refiners -- SK Energy (096770.KS: Quote, Profile, Research), GS Caltex, S-Oil Corp (010950.KS: Quote, Profile, Research) and Hyundai Oilbank Corp -- had 14.51 million barrels of crude left in stocks by May 31, compared to 22.95 million barrels a year before, KNOC's monthly data showed.
That would be a loss in stocks of about 8.44 million barrels
Quote:
Along with the fall, overall private oil stocks by end-May fell 8.9 percent from a year ago to 70.18 million barrels.
"The problem is continuing. High crude oil prices are pressuring refiners to use stocks rather than make new imports," said Uhm Kwang-yong, domestic products analyst at KNOC.
The end-May crude inventory volume was enough to meet 6.7 days of the country's demand, down from 10.9 days on average in the previous year.
So we don't really know how much usage has gone down... they have been using existing stocks.
Imagine what will happen to prices when they have to start importing again
Sorry OF2. The real world is more complicated than you perceive. _________________ Ring them bells St. Peter
Where the four winds blow,
Ring them bells with an iron hand
So the people will know.
Oh it's rush hour now
On the wheel and the plow
And the sun is going down
Upon the sacred cow.
-Bobby D.
Last edited by wisconsin_cur on Sun Jul 06, 2008 6:23 pm; edited 2 times in total
Posted: Sun Jul 06, 2008 6:18 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
Its really starting to come together. Prices have been relentlessly rising of late and all these people who have been trying to bunker down are starting to realize its just going to get worse. I'm betting that just when these countries reach a breaking point shortages will start to appear then oil rising $10-$20 a day will be the norm as everyone panics. Good idea to be prepared for that day.
Posted: Sun Jul 06, 2008 6:29 pm Post subject: Re: S. Korea to cut oil tax if oil hits $170
wisconsin_cur wrote:
OilFinder2 wrote:
Sorry to say, but oil demand in Korea is a bit more elastic than you think.
or not?
Crude inventories in S. Korea,
Quote:
SEOUL, June 20 (Reuters) - South Korea's commercial crude inventory fell nearly 37 percent by end-May from a year ago as high oil prices continued to discourage refiners from making new purchases, state-run Korea National Oil Corp (KNOC) said Friday.
South Korean oil demand has been flat for several years. It would be nice to see actual recent figures, but I'd be willing to bet that much of the decline in crude imports represents decreased demand.
A decrease in storage does not necessarily mean a lack of supply, it could mean they don't want to have $140 oil sitting around idle in storage. It's getting too expensive to keep in storage, so they take a "lean inventory" approach.
Same goes with US storage, I might add. _________________ Abundance - what a concept!
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