Alwaleed warns of US shale danger to Saudi

www.ft.com ^ | July 29, 2013 7:23 pm | By Ajay Makan in London and Abeer Allam in Abu Dhabi

[Ernest_at_the_Beach]

Prince Alwaleed bin Talal, the billionaire Saudi Arabian investor, has warned that his country’s oil-dependent economy is increasingly vulnerable to competition from the US shale revolution, setting him at odds with his country’s oil ministry and Opec officials.

In an open letter addressed to Ali Naimi, the Saudi oil minister, the prince called on the government to accelerate plans to diversify the economy.

[PGR88]

Don’t worry Prince, Obama will never let the US do that to you.

[Ernest_at_the_Beach]

H/T to the Drudge Report.

[Ernest_at_the_Beach]

Related thread:

The Legacy of Fracking Pioneer George Mitchell

[LouAvul]

Obama will never let the US do that to you.

And doubtless Jorge Busho and family will do all within their power to make sure the raghead trash continue to live high on the hog.

[AzNASCARfan]

But the solution is so simple... Drop the price of OPEC’s oil to below what it cost to produce the shale oil and we would quit...

[Ernest_at_the_Beach]

Shhhhh...

[Dick Bachert]

I would urge all the OPEC members in the ME to accelerate their research into turning sand into something to eat because once we evict the insane children from the White Hut, we’re going after OUR resources.

[Marine_Uncle]

May he rest in peace. He contributed well in the way of providing much technology in oil/gas extraction for the USA in those early years.
Time to get some sleep. I'll pass on who's hand's he let his fortune fall into.

[familyop]

Isn’t it wonderful? Oil is down to $25 per barrel now, and the average gasoline price is 23.9 cents per gallon—all from the magic of trillions of barrels per day of sweet shale oil just gushing out of secret, super high tech. refineries!

[More than a little irony there.]

;-)

[familyop]

Potential natural gas yields do look promising, BTW, and development of natural gas for use in vehicles is interesting. As for oil production beyond simply pumping it out of the ground, oil sands production is probably the best to date. It would be good to see the Keystone XL completed for our near future.

[CPO retired]

I see Zero providing the most protection for the Saudis, but Klintoon and Bushes were propping them up too. I have to believe they have seen this coming for a long time. They have even backed off of price run-ups when the price of oil was beginning to make other methods of extraction profitable.

[CT]

Some of this we owe credit to Dick Cheney. Additionally, Obama should get no credit whatsoever. Most of the gains have come from private lands and existing leases.

The Environmental Industry, and they are big just like Big Oil, has tried to shut this down.

Matt Damon should set himself on fire. That would get more attention than his goofy box office flops.

[CT]

,br>Think of all the fools like Obama that will have buildings and schools named after him. Then think about what Mitchell has contributed, in addition to making Jimmy Carter, Clinton, and Obama fools by preaching the gospel of Peak Oil, and you can see how unjust life truly is.

[CT]

If we do not increase our capacity to refine, many of the gains in jobs and economic growth will go offshore (through tankers and LNG transfers). Just like cutting old growth timber, and shipping the logs to Japan for processing.

[Marine_Uncle]

Allow me to second your statements. All proven over time to be true. I finished watching a few C-SPAN videos on SOC's and the future of the US Army. Now tis time to hit the rack.
Do have a great upcoming day.

[mindburglar]

Since those sand monkeys can’t even operate their own fields, all you need to do is pay Indians and Philippinos 300-500 bucks a month to stay out of Saudi Arabia. Their economy would crumble.

[familyop]

"If we do not increase our capacity to refine, many of the gains in jobs and economic growth will go offshore (through tankers and LNG transfers). Just like cutting old growth timber, and shipping the logs to Japan for processing."

Agreed. We should refine as much as possible. It's going to be done anyway. Eastern Asia may have hundreds of millions of new drivers over the years to come, and manufacturing continues to increase there. So prices may get much more attractive for those willing to put more effort into refining.

Our Bakken Formation could yield up to about 7.4 billion barrels of oil from oil-bearing shale (US Geological Survey, April, 2013). At 18 million barrels per day (little less than what our U.S. consumption has presently declined to), that would keep our USA going for about 411 days. [Little hint there. We can use the oil sands product, too--as much as we can buy.]

Granted, we won't be needing that much for American consumption in the near future, so we might as well get something out of it. The Arab dude mentioned in the article, by the way, is probably really more concerned about our declining consumption from the default process.

Have fun. Enjoy the slide. It'll be good for us in the long run. [Serious about that.]