Posted on 12/14/2014 2:08:05 PM PST by elhombrelibre
This week, oil fell through the price floor of $60 a barrel and gas at my local filling station was $2.26 a gallon.
That’s great news for commuters and almost every business, but wonderfully bad news for our ugliest enemies.
If oil prices remain low through next year, the effect on rogue governments, from the Russian Federation to Venezuela, will go from damaging to devastating.
But Western economies (and China’s) stand to benefit, with cheap oil possibly tickling Europe’s snoozing markets awake. Even most underdeveloped states will get a welcome break.
(Excerpt) Read more at nypost.com ...
too good!
The Saudis aren’t doing any of this to help us, but it helps us just the same. Now the key issue is: How long will prices stay low?
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Saudi ARAMCO, one of the largest petroleum companies on the planet: do you know what ARAMCO stands for? The ARABIAN-AMERICAN OIL COMPANY. Yes, hard as it may seem for Americans to believe, the Saudis are our friends. ARAMCO was started in the late 1920's by Texas oilmen.
Americans have lived and worked over there since then and are still there and will be there a long time.
We even had men-of-the-cloth over there, a priest, minister (for all Protestant denominations) and a vicar for a once-a-month Anglican service since there were only six Anglicans on camp.
Christians men-of-the-cloth are called "special teachers" since men-of-the-cloth are not allowed in the Kingdom.
They also hire American Jews for work over there. They had one for WOMEN who needed X-rays and P.T. She was delighted to be there because she made a ton of money...and she was AMERICAN. She cleaned up and left after a few years.
She was, of course, a member of the "people of the Book"--that is, the Bible: Christians, Jews and Muslims. The Saudies NEVER hire Hindus, Zoroastrians, Sikhs, Farsis, Bahá'ís, Mormons, Buddhists, Taoists/Confucianists, Jainists, Shinto and other non-people of the Book.
There have been TENS OF THOUSANDS of Americans who live, work, lived, worked and will live, will work in Saudi Arabia as long as their petroleum lasts.
It is ESTIMATED that the Saudis have another 200 years of petroleum and natural gas.
And YES, they are doing this to help the U.S.A. because we are one of their BIGGEST customers and oldest friends.
Those first petroleum contracts, made in the 1920's, were made with a HANDSHAKE...since 99% of the Saudis were illiterate.
The Saudi king BOUGHT BACK all the petroleum/natual gas rights from ARAMCO way back in 1982. I can'T IMAGINE what he paid for them.
Back in the early 80's, after the King PERSONALLY bought the petroleum and natural gas rights, he was raking in ONE BILLIONS DOLLAR$ every two and a half days.
Gadzooks.
Yes, my husband was one of the ARMY of engineers who worked there. He was a mechanical engineer and worked for a gas company here...then got a job there. AND, everyone knows that mechanical engineers can do any/everything--pumps, engines, machines, everything that makes everything run.
We made a s***pile of money over there.
WE became gente libre with all that "awl bidness"$$. That last part was "Texasese," which I have to brush up on since I'm "fixin'" to go the Texas for Christmas.
the Saudis have very low production costit’s their extracurricular activities that cost like hell
I doubt it will last more than a year or so, but while it does, it’s VERY, VERY nice to get cheaper fuel bills.
Fuel oil, propane, and gasoline still cost a lot more than they did before Obama lied his way into the White Hut.
Spot on!
Too bad they all can’t lose.
They went into this with nearly a trillion in cash reserve.
Unfortunately, the only thing propping up employment and the economy in this country is the energy boom. Be ready... it’s gonna hurt and they will blame President Cruz in 2017.
to offset lower revenues they pump more
- - - -
They have not increased production.
It would seem their most pressing concern is Iran...The rest is about Suadi hegemony in the gulf, and them as the top of the proverbial heap. There is much strategy on their part and we cannot see all of what they see/know/anticipate.
The whole region is a sectarian powder keg waiting to go off at any moment once the boot of power is eased from whomever is wearing it at the moment. The House of Saud needs to keep an iron grip on all of the players lest the alliances start shifting and the House of Saud ends up dead.
Were the House of Saud to fall, imagine the mess over there.
I would think that they will pump more oil if necessary, whatever it takes to keep them alive and in control. I don't think that they are thinking of the future right now....they are thinking about tomorrow and keeping themselves large and in charge whatever it takes.
The Saudis have enough hard currency reserve’s to fund their welfare state for the next 30 years at $40/barrel.
Russia has 2 years of hard currency reserves and Iran less.
Great article with lots of good photos. Peters lays out the winners and losers as the Saudi pump oil all out
I grew up down-wind of that refinery.
And the steel mills...
Gas broke the $2 barrier here in Indy today, $1.92 in all the stations in Franklin south of town.
I doubt it will last more than a year or so, but while it does, it’s VERY, VERY nice to get cheaper fuel bills.
It’s not going to take even a year. The Russian ruble crashed 5% on friday alone.
“Gas broke the $2 barrier here in Indy today, $1.92 “
Still around $2.70 here!@
tcrlaf -- The Islamic State was created by SAudi Arabia and they still fund it, keeping it as their dagger against Shias
starboard -- the Saudis make no real investment -- they just buy off unrest with money
I think ISIS is a bigger concern for now.
ISIS is a problem for them, among many. The easiest way to slow down the nonsense in the gulf is to lower the revenue streams for everyone. They don’t have as much “spare” cash to spend on Jihad. The Suadi’s have the cash reserves and the capacity and will keep pumping to keep the price low until the non-Suadi aligned jihadists implode.
Remember the Saudi’s hold the islam holy places, and stand to lose the most if their regime gets overthrown. It’s not liek the House of Saud is well liked in the region either. Many are still bitter that they allowed infidels there during the first gulf war let alone the second. There is a whole dynamic there that you and I simply cannot comprehend for two reasons. One, we don’t live there. Two, we’re not nuts.
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