[RayChuang88]

I think Saudi Arabia knows that there is a LOT more oil that could be extracted out of the Arabian Peninsula if they would apply more modern extraction methods (fracking, pressurized injection or CO2 gas or steam, special detergent fluid injection). They have to do it fast because if the sanctions against Iran lift, Iran itself could jump on these extraction technologies and could pose a gigantic economic threat to the Saudis--not a good idea when the Arabs of Saudi Arabia and the Iranians have a historic rivalry dating back well before the rise of Islam.

[thackney]

Saudi has been applying water flood, CO2 etc to some of the fields for many years trying to keep up the flow rate from those old fields.

I think Saudi went into the current price situation, well aware that it was coming. They were well prepared with cash reserves.

Saudi is far better than the typical national oil company in planning for the future. Taking advantage of declining cost for drilling and completion in the declining market is a sign of strong finacials and future planning.