Posted on 01/12/2015 10:26:11 AM PST by blam
Portia Crowe
January 12, 2015
Prince Alwaleed bin Talal, the eccentric Saudi billionaire once labeled the "Arabian Warren Buffett," predicted that oil would never again reach $100 a barrel.
"The price of oil above $100 is artificial," he said. "It's not correct."
That's in an interview with Maria Bartiromo for USA Today, in which the business magnate blamed oversupply and weak demand for the recent drop in oil prices.
He also predicted hard times ahead for America's shale-oil and gas industries.
"No one knows for sure what price is the breaking point for shale," he said. "Wells have a higher production cost. And very clearly these will run out of business, or at least not be economical."
Back in November, OPEC announced its controversial decision not to cut oil production despite falling prices. This was seen as a call made by Saudi Arabia, despite objections from other OPEC nations that are losing money at current price levels. Some speculated this was Saudi Arabia going after Iran and Russia. Others speculated that it was a move to take market share from US shale producers, which have relatively high breakeven drilling costs.
(snip)
(Excerpt) Read more at businessinsider.com ...
Not that easy to reconstitute an industry. We are competing against state-run oil companies. Private companies are reluctant to sink large amounts of money into a project that could be affected overnight by these state run operations. Countries can absorb the revenue losses far more easily than private firms. Monopolies destroy Mom and Pop operations by driving them out of business even if it means short term losses.
Transportation, Utilities, Agriculture.
Makes sense to me!
Sorry for energy/oil field workers. But lets keep it down around $50-60. We will all adjust, and NO NEW TAXES!
I don't think it is unreasonable to view the charts as you do.
I just don't have much confidence in Saudi Arabia, or any other Muzzie country, to keep the lid on oil prices or anything else that comes bubbling up.
Nor do I think Russia will wait patiently while their economy is completely gutted, not to mention the oil-dependent dictatorships in our own hemisphere.
I am certainly not eager for it, but as was pointed out earlier by another poster, wars are fought over just these kinds of policies, developments and their consequences.
” what is poor Venezuela going to do ? “ ..
Don’t cry for me Argentina ?
Oh crazy Prince, never say never, your nemises Iran could choke off the Straight of Hormez and the price of oil would go over $ 100 a barrle over night.
But it could go to $99.99/bbl
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.