Debate House Prices


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RBS brace for a “cataclysmic year”

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  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
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    Case in point regarding the problems of lower oil prices....

    BP announce 6,000 job cuts. 600 in it's North Sea operations.

    http://www.bbc.co.uk/news/business-35289771
  • Generali
    Generali Posts: 36,411 Forumite
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    Graham_Devon wrote: »
    Case in point regarding the problems of lower oil prices....

    BP announce 6,000 job cuts. 600 in it's North Sea operations.

    http://www.bbc.co.uk/news/business-35289771

    It's only a very small part of the picture.

    6,000 job losses, 64,000,000 people with a pay rise.

    What do you think is more important to the economy as a whole?

    I feel terrible for those that have lost their jobs but in macro economic terms it's insignificant against the gains to be made.
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
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    On the BBC website there was a photo of a BP petrol station amid news of the job losses...

    It occurred to me that I've not seen a BP petrol station in years...

    What about these job losses ?

    ;)
  • cells
    cells Posts: 5,246 Forumite
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    Generali wrote: »
    [STRIKE][/STRIKE]

    The savings of paying perhaps £5-10/wk for each of the 35,000,000 cars in the UK isn't to be sniffed at either.


    Its easy to calculate the underlying saving (assuming refining margins havent held up to save the oilies from more pain)

    oil use x price. For the uk its about 550 million barrels pa so if you say $50 off = $27.5 Billion or about £18 Billion pounds or ~£655 per household directly and indirectly.
  • cells
    cells Posts: 5,246 Forumite
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    jeepjunkie wrote: »
    On the BBC website there was a photo of a BP petrol station amid news of the job losses...

    It occurred to me that I've not seen a BP petrol station in years...

    What about these job losses ?

    ;)


    I think the supermarket petrol stations destroyed a lot of the less volume sales dotted around the place stations.
  • cells
    cells Posts: 5,246 Forumite
    edited 12 January 2016 at 2:18PM
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    Generali wrote: »
    It's only a very small part of the picture.

    6,000 job losses, 64,000,000 people with a pay rise.

    What do you think is more important to the economy as a whole?

    I feel terrible for those that have lost their jobs but in macro economic terms it's insignificant against the gains to be made.



    the 'gain' of ~£18 Billion is about 500,000 full time jobs equivalent. More than the entire oil production industry in the uk employs directly or indirectly

    The uk would be better off if the uk oil industry collapsed but prices stayed at $35 rather than the uk oil industry continue but prices go up to $85. of course the uk oil industry wont collapse they still have 20-30 years to pump even if they invest next to nothing

    There is also the gain from lower nat gas prices too
  • michaels
    michaels Posts: 28,068 Forumite
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    Graham_Devon wrote: »
    It's a very good point.

    It's also why fuel duty should be reduced.

    And is it law that VAT is charged on fuel duty? It's the only value added tax on raw tax that I know of?

    Given the big economic impact of fuel prices I would suggest now was the time for a sharp increase in fuel duty coupled with the introduction of a price stabiliser mechanism to that as oil prices increased the duty payable fell to make the economy less sensitive to oil prices which appear to be rather volatile....
    I think....
  • Generali
    Generali Posts: 36,411 Forumite
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    cells wrote: »
    the 'gain' of ~£18 Billion is about 500,000 full time jobs equivalent. More than the entire oil production industry in the uk employs directly or indirectly

    The uk would be better off if the uk oil industry collapsed but prices stayed at $35 rather than the uk oil industry continue but prices go up to $85. of course the uk oil industry wont collapse they still have 20-30 years to pump even if they invest next to nothing

    There is also the gain from lower nat gas prices too

    I wouldn't use the figures so precisely but the point is 100% correct: the gains from the lower oil price for the UK, as a country which in European terms does relatively well from a higher oil price, are great. Then add to that the fact that the UK also gains from a more prosperous EU, her biggest trading partner.....kerrrching!
  • Generali
    Generali Posts: 36,411 Forumite
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    michaels wrote: »
    Given the big economic impact of fuel prices I would suggest now was the time for a sharp increase in fuel duty coupled with the introduction of a price stabiliser mechanism to that as oil prices increased the duty payable fell to make the economy less sensitive to oil prices which appear to be rather volatile....

    Oil prices aren't that volatile, they are just reverting to mean.
  • Graham_Devon
    Graham_Devon Posts: 58,560 Forumite
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    edited 12 January 2016 at 2:43PM
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    cells wrote: »
    oil use x price. For the uk its about 550 million barrels pa so if you say $50 off = $27.5 Billion or about £18 Billion pounds or ~£655 per household directly and indirectly.

    Is that 550m barrels household use though?

    A lot is used by business.

    £655 saving is around 32 full tanks of fuel a year (at a saving of £20 per tank).

    I realise there are savings to be had elsewhere (like my tyre example) but I don't think the average family uses 2.6 full tanks of fuel each month.
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