[Bubba_Leroy]

Bush's fault.

[Know et al]

Too big to fail.
Obama will bail them out.

[skeeter]

Think of all those madrassas in the west losing their seed money.

What a shame.

[Fungi]

Great article. Anbrose is a great writer and researcher. He wrote the book on Clinton during the slickmeisture's tenure in the white house. One revealing sentence was that the price of crude will stay down as every time the price rises, shale drillers just turn on the pump, increase supply, and force the price down again. Intuitive. "Once oil climbs back to $60 or even $55 - since the threshold keeps falling - they will crank up production almost instantly. "

[Mark17]

Is there a downside to OPEC going down the tubes?

[DuncanWaring]

How many tera-bucks have the Saudis got in the bank?

[DesertRhino]

Another reason I like Trump. Probably be hard to bribe him.

[Truth29]

Different take on this: So Saudi Arabia needs to move quickly on acquiring nuclear weapons and delivery systems and arrange a joint attack with Israel to eliminate Iran. This forecast and Obama’s overt financing and assistance to Iran mean that SA will get steadily weaker and Iran steadily stronger. SA and Israel need to attack ASAP.

[moovova]

Maybe SA will stop funding terrorism.

[rbg81]

A pox on all their houses. The only downside: more refugees coming to Europe and America. Which we will stupidly let in.

[Moonman62]

Bank of America says OPEC is now “effectively dissolved”. The cartel might as well shut down its offices in Vienna to save money.

...

Anyone who lived through the gas lines of the 1970’s probably thought they would never read that.

This could give us hope that one day, the Washington cartel will be dissolved, too.

[Vince Ferrer]

This is a good article, but it is a bit short sided thinking that this was just a short term gamble by Saudi Arabia to knock out the US producers. I read an interview with their oil minister last year. He was very level headed and rational about the future of oil prices with the new technologies. He is also is taking into consideration that electric vehicles are becoming viable.

They are using their reserves to diversify as quickly as they can, even getting into solar. I don't think they will succeed, and the world will be better off for it.

And the price of oil is not their biggest problem. A nuclear armed Iran is their biggest problem.

[Caipirabob]

Saudi Arabia may go broke before the US oil industry buckles

Not at all from what I've read. If true, they can keep this up for a few years.

OTOH, once we get rid of obozo American industry will have considerably better options to handle such events and be much more flexible.

Until then, it's cap, cut back or close and consolidate.

[proxy_user]

The US drillers have stopped drilling, but it obviously makes no sense not to produce if the wells are already drilled. The US wells in production will deplete much faster than the wells in Saudi Arabia, probably falling 30% by the end of the year. The Saudis will also be unable to keep up production without stopping for maintenance, so prices are quite likely to tighten a little in the near-term. They might not go high enough to justify new drilling in the US, so the Saudis might just get their wish - stable $70 oil.

[Army Air Corps]

Petro Ping.

[Repeal The 17th]

Saudi Arabia can still make a profit on $30/barrel oil.
Who else can do that?

[boycott]

They got used to living big. I hope they fall flat on their azzes.

[ozzymandus]

Local oil price is $35/bbl. Lots of oilfield workers out of work and more to follow. Independents who expanded when oil was nearing $100 are hurting bad.

[GeronL]

Good!

Let the Saudi’s go broke

[Red in Blue PA]

Couldn’t happen to nicer people.

[OldSmaj]

Oh, I really do hate that.

Somewhere, some Saudi under-Prince named Ibn du Skyhook Shih Ted will have to do without his new top of the line Ferrari and may have to shed a couple of wives.

I could give a rat's ass...I hope they all have to go back to living in tents and eating dates, lizards and camel balls.