Saudi Arabia: What Happens When the Oil Stops

Middle East Eye ^ | 22 April 2020 | David Hearst

[marron]

It would be a massive stimulus if the demand for oil was constant and the price dropped dramatically as it has. But demand has crashed due to the crash of the economy itself. People aren’t commuting.

Rising oil prices, generally, mean a rising demand which mean the economy is cooking. Falling demand, the reverse. So while cheap gas helps me personally, it also indicates rising unemployment. Which is not good.

Fortunately, much of the damage can be reversed rather quickly by simply letting people go back to work. As for oil, that will put a floor to the drop in price. We can survive and even thrive with a lower price, but “zero” means the economy itself has collapsed.

[marron]

For many years, the EU has been importing Muslims, against the obvious long-term interests of native Europeans. How much of that was because the Saudis, and others, were bribing EU politicians to do that?

Bingo. I have said it numerous times, Saudi Arabia bought Europe and the mass immigration was simply the visible indicator that they were taking possession. You only have to buy a few people at the top to get control of a continent. We ourselves should know that.

[marron]

Its OK, our politicians have already found new patrons in Beijing.

[central_va]

This is how much I care about the Kingdom.

[central_va]

If the people of the USA ran the country and not corporations there'd be a floating oil import tariff to keep the price of oil and at constant 50.00/bbl until this man made crises ended.

[P.O.E.]

Personal transportation seems to be around 1/4 of oil use. So combine record unemployment with record telecommuting, a large piece of US demand may not be coming back anytime soon.

(Various sources seem to have different data in different slices, but here’s an example)

About 2/3 of oil is used in transportation.

https://www.eia.gov/energyexplained/oil-and-petroleum-products/use-of-oil.php

About 1/3 of that is light-duty vehicles.
https://www.maritime-executive.com/article/transport-uses-25-percent-of-world-energy

[Fishtalk]

You’re wrong.

[LouAvul]

Trump thought for every cent cut from the price of oil, a billion dollars of consumer spending power would be released at home. That was until his attention turned to what the oil price collapse was doing to his own oil industry.

Given POTUS Trump's incredible business savvy, I seriously doubt the veracity of the above. Anybody with even a rudimentary understanding of economics knew a prolonged price war between Russia and Saudi Arabia would be catastrophic.

[proxy_user]

So they invested in oil companies, then crashed the price of oil. They bought Softbank and sold Tesla.

If you’re going to be a stock market investor, you’re going to like trading against them. The reason smart stock market investors can make money is that there are plenty of stupid investors with lots of money.

[Ozark Tom]

Lithium Battery—Samsung leads in innovation.

[Lurker]

I hope the Saudis starve to death.

L

[Capt. Tom]

and religion - the Al Sauds married into the Al-Wahhabs and have a pact to spread Wahabbism -- why do you think Islamic jihadism has spread since the 1970s thanks to Saudi funding madrassahs from the Philippines to the USA

To me this is the reason for the fast spread of Islam into the Infidel countries.
Wahabbi funding, and fundamental interpretation of Islam being pushed on traitorous and backsliding Muslims and getting them into line with the fundamentals of Islam that Muhammad and the 4 following Caliphs (Who knew Muhammad)practiced.

Fundamental Islam is fatal to us Allah hated Infidels. -Tom

[minnesota_bound]

How can you be broke when you sit on an ocean of oil?

[Cronos]

Islam is fatal to us infidels.

the Wahabbis are just the latest of a long line of reformed Islamic movements.

[Cronos]

you can if you blow that money. And the Saudis and Venezuelans have done that

in contrast the Norwegians haven't and neither have the Omanis (though the Omanis have far less oil)

[Cronos]

well he has made mistakes - he’s filed for bankruptcy 4 times. Not everyone wins everytime.

[CIB-173RDABN]

The collapse of oil is not because we discovered a new source of energy, we simply decreased demand. When people are allowed to return to work, demand will increase.

While companies may fail, the oil is still there. Either in storage are still in the ground.

As for Saudi Arabia, well it could not happen to a “nicer” country. To me they are in the same boat as China, both used Western money in an attempt to destroy the west.

We need to be independent from both nations.

[Capt. Tom]

the Wahabbis are just the latest of a long line of reformed Islamic movements.

Muhammad al Wahabb was the spiritual adviser to Al Saud when Saud conquered the Arabian Peninsula in the 1700s. Wahabb railed against and had killed many Muslims who let aspects of other religions enter into Islam.

Wahabb wanted a back to basics religion, the one Muhammed and the 4 Caliphs that succeeded Muhammad practiced. The Wahabbis have had influence on the Sauds since the 1700s.

The Wahabbis have probably killed more traitorous back sliding .so called moderate Muslims than us Infidels.
Mainly because those Muslim slackers are more easily accessible to the Wahabis;until the last few years when the Muslims got a foothold in the naïve Infidel countries. Now we are only an arms length away.-Tom