Saudi Arabia Surrenders To U.S. Shale

Oilprice.com ^ | 06-12-2016 | CityAM

[bananaman22]

“Ending wars is very simple if you surrender.” – PJ O’Rourke

The new OPEC deal to cut oil output – the cartel’s first since 2008 – amounts to nothing less than Saudi Arabia’s surrender to the power of American shale.

It has come about due to Riyadh’s belated, horrified understanding that it has utterly lost control over the energy market, running through its capital reserves in the process. Rather than young, feckless Deputy Crown Prince Mohammed bin Salman using Saudi Arabia’s John D Rockefeller strategy to permanently drive U.S. shale out of the energy market, the exact opposite result has occurred. Unwittingly, the Saudis have made the Americans the new global energy swing producer, the permanent ceiling for the global price of oil.

[Texas Eagle]

The Trump Effect continues.

[dfwgator]

Man, I’m really getting tired of all this winning.

[Moonman62]

They can always enrich their country with Muslim refugees.

[thoughtomator]

The kind of surrender I want to see from Saudi Arabia is the one where the heads of every member of their aristocracy are delivered in separate, vacuum-sealed bags with properly labeled identification tags.

If the Iranians want to nuke the Saudis? I think I’m coming around to the position of being perfectly fine with that.

[jimbug]

Pulling all investments out of Aston-Martin, Rolls-Royce, Ferrari, Mercedes.

Investing in camels.

[wtd]

Coincidentally:

• Forbes 9/2016: Saudi Arabia buying up America's oil assets

  Saudi Aramco CEO Amin Nasser (L) talks with Total CEO Patrick Pouyanne (R) during a press conference following a meeting of the Oil and Gas Climate Initiative (OGCI) in Paris on October 16, 2015. ERIC PIERMONT/AFP/Getty Images

  Saudi Arabia is quietly amassing quite a portfolio of American energy assets. State-owned Saudi Aramco is already co-owner, with Royal Dutch Shell , of Motiva, the largest U.S. refinery. Under an already signed agreement, in April 2017, Aramco will take full ownership of the most valuable Motiva assets. Now comes news that Motiva is the leading candidate to purchase the Lyondell Basell Refinery in Houston. This would give Saudi Arabia control of two major Texas refineries proving, once again, that American energy independence is impossible.

[NFHale]

“...Riyadh’s belated, horrified understanding that it has utterly lost control over the energy market,...”

What an amazing, well-written line... Love it...

[FreeReign]

There’s plenty of oil and the planet isn’t warming. Trump should jettison the CAFE standards.

[Oldexpat]

Now we wait to see which cash strapped dictatorship will ignore the production limits.

[Gunner TLW]

Oh hurry, Saudi Arabia, please collapse faster!

When this Tyrannical, America Hating, Jihad Supporting Wahhabi regime collapses I will rejoice with enthusiasm.

No nation on earth comes close to the financial support of Jihadist as Saudi Arabia.

I anxiously wait the day they are occupied by a hostile power and meet the same fate as those Americans they paid to murder on 9-11!

[T Ruth]

while the election of Trump brings to an abrupt end 70 years of the U.S. as the global ordering power,

Huh?

[whodathunkit]

I hope ‘Observer’ in the article response doesn’t mind me reposting his quote here. I enjoyed it so very much...

” Middle East has this “overdoing” problem.
A few centuries back Ottomans overtaxed spices - and Europe sailed around Africa for the first time, switching the balance of power forever.
Now the petroleum - prices shooting to sky to subsidize under-educated, over-indulged, fast growing population’s luxurious dreams - till Americans made shale oil a reality.
“

[RayChuang88]

Thanks to new extraction technology, the USA is now exploiting its petroleum resources on a scale not imaginable just a few years ago. We now have such a surplus of natural gas that some of it is being turned to liquid motor fuels and even motor oil!

[knarf]

Big, BIG news !

Ah ain' nowars NEAHR tahhed

[ari-freedom]

Enviros are shills for the Saudis, cap and traders and Silicon Valley Solyndras

[Fightin Whitey]

USA is now exploiting its petroleum resources on a scale not imaginable just a few years ago

True enough. Now if the Occupiers and blanket Indians will just allow it to come to market...

[Bodega]

When are we going to stop selling our oil assets??????

[muleskinner]

"No nation on earth comes close to the financial support of Jihadist as Saudi Arabia."

Except Iran. And they'll have nukes shortly.

[RayChuang88]

But we still have the gigantic petroleum finds in western Texas from recent years. Just that will help ensure our dependency of oil from House of Saud will be dramatically reduced.