Posted on 08/11/2015 2:07:11 PM PDT by rickmichaels
If the oil futures market is correct, Saudi Arabia will run into trouble within two years. It will be in existential crisis by the end of the decade.
The contract price of U.S. crude for delivery in December 2020 is currently US$62.05, implying a drastic change in the economic landscape for the Middle East and petro-states.
The Saudis took a huge gamble last November when they stopped supporting prices and opted instead to flood the market to drive out rivals, boosting output to 10.6m barrels a day (b/d) into the teeth of the downturn. Bank of America says the Organization of the Petroleum Exporting Countries (OPEC) is now effectively dissolved.
If the aim was to choke the U.S. shale industry, the Saudis have misjudged badly.
It is becoming apparent that non-OPEC producers are not as responsive to low oil prices as had been thought, at least in the short run, said the Saudi central bank in its latest stability report.
One Saudi expert was more blunt. The policy hasnt worked and it will never work, he said.
By causing the oil price to crash, the Saudis and their Gulf allies have certainly killed off prospects for a raft of high-cost ventures in the Arctic, the Gulf of Mexico, the waters of the mid-Atlantic and the Canadian oilsands.
Consultants Wood Mackenzie said the major oil and gas companies have shelved 46 large projects, deferring US$200 billion of investments.
(Excerpt) Read more at business.financialpost.com ...
Did the article mention Iran and their world manipulation? They can sell lots of oil to counter the SA production decrease and keep pricing down putting SA in a bind.
Never bet against oilmen from Texas. They will win, and have more Iives than a cat.
Even if they do try to throttle back production to drive up the price, the oil the Iranians are about to flood the market with will negate it
I also think they have been bribing the politicians of Europe to let in their underclass and troublemakers. When that money stops, and Europe stops being their trash dump and Muslims start getting deported back to their ancestral homes, you will see BIG trouble start.
na na na na hey hey goodbye
I hope that this leads to their demise. I once thought that part of a good economic and foreign policy was to suck the middle east oil fields dry while retaining our own oil rereserves, never letting the ME to have access to our oil reserves in the future. Unfortunately, liberals and progressives have screwed up our economic might so much that this strategy is not achievable. By the way, my thoughts go back to the 70’s energy crisis and a recognition of the evil if Islam during the Iranian hostage crisis. I am still pissed at Iran and our government’s lack of resolve to punish Iran. Since the Iranian hostage crisis we can add a number of other ME countries to the list that need to be utterly destroyed and never rebuilt, at least not with American tax dollars.
See tagline...
When Ambrose Evans-Pritchard reports a story like this, you may as well believe the complete opposite. He’s not exactly a trustworthy analyst.
(I’m not saying he’s ALWAYS wrong — maybe just half of the time.)
>> Hello Bill OReilly are you there? <<
You beat me to it! O’Reilly has long acted like a total fool on the oil price issue.
(Actually, I think he probably knows better. But I guess he’d rather pander away on what he considers a “populist” issue.)
Right.
Ha ha. Eat sand, now-rich camel-jockeys.
I remember too what those filthy Iranian savages did to our hostages.
NEVER FORGET 444.
Right. And all the while, US frackers will be improving their processes, shaving costs, increasing their yields and being able to ramp up production quickly. If a business-oriented candidate can be elected, US oil, armed with the new fracking skills, the Green River Formation might finally be able to be tapped - ending US economy-as-hostage to volatile world oil pricing.
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