Saudi prince...Fracking could put OPEC out of Business

Examiner,com ^ | July 29th, 2013 | Steven H Ahle

[Red Statements]

Prince Alwaleed bin Talal said that fracking in the US has lessened demand for their oil, and that they need to begin to find other income sources. In a letter to oil minister, Ali al Naimi and other top government officials, Alwaleed said that fracking was responsible for the declining demand for oil from OPEC.

Alwaleed recommends that the oil rich country, should diversify immediately before the impact gets to be out of hand. He says that the Saudi's dependence on oil income is, "a truth that has really become a source of worry for many".

[Laurent.w]

OPEC earnings are skyrocketing.

Because $100 a barrel is now the new floor for oil.
Sanford C. Bernstein, the Wall Street research company, calls the rapid increase in production costs “the dark side of the golden age of shale”.
They estimated that the non-Opec marginal cost of oil production - the cost of production for the most expensive new fields - rose to $104.50 a barrel in 2012, up more than 250% from $30 a barrel in 2002.
At the same time, the IEA estimates it costs between $4 and $6 to produce each barrel of oil from the conventional fields in Saudi Arabia and Iraq.
So, now, OPEC is earning $1 trillion per year versus around $200 billion per year between 1985 and 2002 (today's dollars).

[urbanpovertylawcenter]

It will take several generations to break these political alliances which are deeply imbedded in our dear leaders and the corrupt banking and finance cartels who fleece the unwitting flocks.

[stickywillie]

well, we shall see what happens to gas prices, when we have no where to accomodate more supply

[rockinqsranch]

That’s what will bring the prices down somewhat, but it will be sold, already being sold, and exported overseas. Oil Industry is a World industry, not just an American entity.

[stickywillie]

there’s going to be a glut of oil all over the world....that’s just the point. frackin’ is happnin’ everywhere. a few years ago, they said they are going to be able to get it out of the ground in North Dakota for $16 a barrell, and that’s probably more expensive than other places with cheaper labor.

[rockinqsranch]

You have a good point, but my point is, and has been history tells us the Leftists will put every effort towards denying our Nation cheap fossil energy, and unless the World much less the U.S. awakens, and removes the Leftists, and their perspectives, their laws, from influence we will never see anything less than artificial pricing of our energy. They will control us by their influence, or by their dictate should we fail to remove them from influence.

[dalereed]

Can’t happen soon enough!!!

They can go back to tents and screwing camels!!

[cunning_fish]

>>>The country that could put OPEC out of business is Russia. Russian geologists know there are HUGE reserves of oil and natural gas waiting to be tapped in eastern Siberia, and once those come online in the next 15-20 years, that will officially be the end of OPEC. And Russia will then wield the world’s most powerful economic weapon: the ability to use oil and natural gas exports as an instrument of diplomacy.<<<

Don’t worry! Green peace is already there to save the bears.
BTW, Siberia was never competitive with Arab lands in terms of costs of production. That is why low oil prices were a death sentence for Russian energy businesses.
Just browse YouTube to look how they are living and working in Siberia.
There was a reason why they’ve used this location as a penal colony for centuries.
They have to pay truck driver some $20,000 a week just to keep one there in Eastern Siberia.