OPEC Divorce And Self-Destruction Thanks To Saudi Oil Strategy?

Oilprice.com ^ | 27-08-2015 | Endree

[bananaman22]

Despite low oil prices, Saudi Arabia is maintaining its investment in its oil industry. Saudi Aramco Chairman Khalid Al-Falih indicated in March that Saudi Aramco would not cut investment. James Crandell, a Cowen & Co. oil analyst cited in this article, who has tracked oil companies’ budgets for many years, estimates that Aramco and its Kuwaiti and UAE counterparts will increase their investment in oil exploration and production in 2015 by 4.5 percent to $38.1 billion. (If proportional to output, the Saudi share would be $24.5 billion).

On it’s website, the Saudi Arabian General Investment Authority (SAGIA) identifies Saudi Arabia as the world’s premier energy economy, describes the outlook for the Saudi energy sector as never having been brighter or more secure and poised for unprecedented growth, diversification, and profitability, and asserts that the high oil revenue environment has spurred a boom in both oil and non-oil development projects.

[ROCKLOBSTER]

Saudi Arabia...its oil industry

Isn't that the same thing?

[mountn man]

Saudi Arabia...its oil industry

Isn't that the same thing?

Not quite.

It would be if it were Saudi Arabia...its oil and sand industry.

[Jonty30]

Couldn’t happen to a nicer bunch of people.

[spokeshave]

Ha....maybe can use the sand for fracking....

Yeah and about exporting the sand for fracking...

[mrsmith]

Seems to me SA is doing the best for itself that it can.
Neither they nor OPEC can control the price. A cut in SA production will not raise the price so all they can do is pump as much as they can.

They do have a huge budget surplus socked away to help them adjust to the new oil market too.

[Zhang Fei]

OPEC may have lost control of the market, but the Saudis still have the lowest costs in the business. They are acting pretty much the same way as every other low cost producer in commodity markets during a glut - producing as much as they can to make up shortfalls in revenue due to cratering prices. This glut may be longer-lived than anyone expects, and Harold Hamm at Continental may end up with less money than his recently-divorced wife, as his company slouches towards Chapter 11.

[Paladin2]

Yep, no reason for SA to stop production investments.

[Newbomb Turk]

Love seeing OPEC circle the drain. Let then eat the sand which is there.

[bestintxas]

“Isn’t that the same thing? “

Nope.

Saudi Arabia is one big family posing as a country that is the heart of Islam.

Oil industry is the mechanism the family uses to make it important.

[RockyTx]

this story is garbage.
............
KSA has plenty of money.
KSA is at war with Iran.
KSA wants to lower the price
that Iran gets for its oil.

[bananaman22]

your arguments are ‘garbage’ professor...

Come back when you think you have enough to convince me of your point of view.

[SunkenCiv]

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