What’s Behind the Drop? Simple Economics The oil industry, with its history of booms and busts, is in a new downturn. OPEN Multimedia Feature There is little doubt that Russia needs the money now, and that the oil companies provide an enticing target. Because they are paid in dollars but conduct their domestic business in the battered ruble, Russia’s oil majors have lots of cash. While globally most oil companies are deep in the red, cash reserves industrywide in Russia remain at an estimated $90 billion, a deep and tempting pool for the strapped Kremlin. But Mr. Putin, who personally oversees the energy industries, knows the dangers of taxing the companies too heavily and has long resisted the temptation. “Putin faces a dilemma,” Mr. Krutikhin said. The […]