Posted on 06/18/2019 3:20:27 PM PDT by bananaman22
For years, investors have been nervous about Aramco’s role as a funding pool for various socio-economic projects in Saudi Arabia, the existential legal threat it faces from the U.S.’s ‘No Oil Producing and Exporting Cartels Act’, and the ongoing questions over its future tax status. It was MBS who - facing sizeable Saudi budget deficits every year until 2023 at the earliest - first mooted the idea in 2016 that the floating of at least 5% of the Kingdom’s flagship hydrocarbons giant would give the whole company a valuation of US$2 trillion. Since then, he has been looking for a way to save face on the IPO and major upwards revisions of reserves like the one released by BP last week are often signs of him doing just that.
(Excerpt) Read more at oilprice.com ...
Saudi Arabia relies on oil to fund their economy. Foreign reserves have fallen since their oil surge late 2014. They need Brent to be $79 to keep domestic economy afloat.
US largest oil producer, topping Russia and Saudi Arabia. We are the swing producer, can easily turn on idle and DUC wells to keep prices down which Trump wants.
No more worries about OPEC jacking prices and pumping inflation and recession. Our oil and gas industry is why inflation low and stable.
I never believe in what they say their reserves are. They lie in order to feed the speculation.
It is truly glorious that the United States is no longer held hostage by the whims and lunacy of OPEC.
Unthinkable during the old “gas crisis” days of the 1970s, and the “peak oil” madness of subsequent decades... the “inevitable and irreversible” decline of American petroleum output.
All that fear — GONE.
MAGA!
I’ll never forget the global economic disruptions caused by the ragheads in the 70s. Rampant inflation, recessions, shortages, wars, etc.
They deserve every inch of misery coming their way.
Misery generally does not faze Mohammedans, as they are entirely fatalistic.
I just want to reduce the misery they inflict on Western Civilization.
It’s hard to over state how important oil is during the past 150 years. Every geopolitical movement has an oil component. From Japan’s attack, Germany’s 3rd Reich decline, rise of the Persian Gulf etc. Strength in energy leads to political strength.
America is blessed to sit on a million square miles of layers of ancient wetlands turned to shale AND to have the social / legal / political means to access.
This was underway before Trump, but he is rightly accelerating it.
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