Posted on 02/24/2016 5:22:59 AM PST by xzins
Saudi Arabia pretty much admits they are at war with US shale/frackers
Even tells them to cut/borrow/liquidate
I have a feeling that immediately after the Saudis take on the IRG in Syria, the price of oil will go up. Because at that moment, those rockets we see being tested will effectively cut off Saudi Oil.
The Sauds can’t keep it up forever and the frackers and oilsand producers will just keep getting better at it.
Iran made
the situation worse...thanks to obama
Since Iran’s and Saudi Arabia’s costs are a government enterprise, they simply need to get more for taking out of the ground than they put into it, and they can even run at a production loss.
Huh?
This is why oil prices are so low. They are trying to put US energy producers out of business.
This is a TRADE WAR and we need to be fighting it.
Normally I am AGAINST government intervention in free trade- but when another country manipulates the economy we have to manipulate it back.
I am not sure I understand enough about the oil industry to know a solution- but adding a tariff to imports would decrease our debt, and have the effect of canceling out their strategy.
If they win this trade war and put US energy manufacturers out of business we will WISH for $100 a barrel oils. They will go to $200 a barrel
I can't find that quote in the original that I copy/pasted.
I have no idea where it came from....the entire paragraph.
That's weird. I never went to the link because it seemed that you posted a complete and clean version of the article.
Saudi oil production has been relatively flat the past few years. It is increased production from the U.S. and other countries that has raised the worldwide supply of oil. The Saudis don’t have the control over world supply that they used to have. They are caught on the horns of a dilemma, because they are so dependent on oil revenue to fund their government. In the current environment, if the Saudis unilaterally either cut production or increase it, they will likely lose revenue.
[and 85-90% of the world's Muslims are Sunni, IOW, Shiites kill twice as many per capita]
We should’ve leveled Saudi Arabia a long time ago
I thought I did. I have no idea how that paragraph was in my copy/paste. They did an Overwrite of an old template that had hidden text or something like that? I’m truly puzzled.
Sorry I didn’t catch it pgkdan. And thank you FOR catching it.
There is an economic reality that some in the press can’t seem to understand. There is a large quantity of shale oil in the ground, already discovered, and there is nothing Saudi Arabia, or any other entity can do to “undiscover” it. It certainly costs more to pump it out than it does to pump Saudi oil, so as long as the Saudis sell theirs for less, it will remain unproduced. As soon as the world oil price inches up enough to make it profitable again, this oil will be produced. This puts a ceiling on world oil prices that is significantly lower than oil has been sold for in the past. The result is nothing but good for oil users.
Saudis hope that the frackers go broke, that the big oil industry owned by them buys it up, and that they can go back to extorting the world.
THAT is where protectionism should jump in in some way. We know that is their intention and that it is counter to our own national security.
At this time the only way oil prices will increase is for an economic recovery in China, Europe and the USA which will increase demand, using up the excess thus driving up prices.
I’ll bet Canadian oil sands are dead for a while.
I agree with you. They are not our friends and have been up to no good for decades.
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