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Cake day: June 9th, 2023

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  • Fossil fuel has actually pretty high fixed production costs. The best example was Texan oil going negative during covid. So with a fast deployment of renewables replacing fossil fuels, we will see periods of fossil fuels being cheap, as renewables replaced enough of them to see oversupply. However low prices also force production to be cut, partly by companies going bankrupt. Once enough has been cut prices are going up again.

    Right now we see a number of OPEC+ countries breaking production limits. Namely Russia, Iraq and Kazakhstan. The Saudis see Iran heading towards a war with Israel and the Saudis want to hurt Iran. So the Saudis threaten increased oil production to hurt Iran’s economy. That would also hurt fracking producers in the US, which would also benefit the Saudis.









  • Moscow started offering 1.9million rubel in July, now Belgorod goes to 3million rubel a few months later. That is a more then 50% increase within 3 months. It is also not just a token amount, but multiple years worth of average Russian salary.

    So no it is not sustainable as Russia has to raise rates and it shows very clearly how much Russian men actually support the war. It also is not as cheap, as offering high salaries in the military, means all other employers have to compete with higher salaries as well. That obviously causes a lot more problems.