|
|
Post by Ozarks Tom on Oct 21, 2015 23:43:50 GMT
Looks like the Saudis are feeling the pain they've been putting on the other oil producing nations. Sort of hate to see it, as it might well raise gas prices again. One narrative we’ve recounted time and again over the past six or so months revolves around the extent to which Saudi Arabia has put itself in dire financial straits by stubbornly keeping crude prices artificially suppressed in an effort to i) bankrupt the US shale space, and ii) pressure the Russians.
In some respects, pushing prices lower was probably a good gamble as far as the odds are concerned. That is, if one were placing bets last November on whether uneconomic US producers would be able to hold out for a year with sub-$50 crude and on whether Moscow would eventually agree to be a bit more friendly geopolitically speaking once the combination of low oil prices and crippling Western economic sanctions had time to sink in, one would have been inclined to think that Riyadh would have gotten its way by now.
But that’s not what happened. www.zerohedge.com/news/2015-10-19/facing-dire-financial-straits-saudi-arabia-delays-contractor-payments-preserve-cash
If it wasn't likely to cost us, I'd say it couldn't be happening to a better bunch.
|
|
|
|
Post by poppy on Oct 21, 2015 23:58:43 GMT
I was reading an article yesterday about a possible coup in Saudi Arabia. I think they are in a bind and have used up billions of their cash reserves.
|
|
|
|
Post by fixitguy on Oct 22, 2015 0:41:42 GMT
As the infrastructure grows in N.D., workers wages in N.D. will stabilize. We are still unsure of how much oil we have there, the bad thing is we are using fresh water to get it.
Our government and the petro dollar may see some fall out over this. The deal was, we buy Saudi oil, Oil get's traded in U.S. $. Russia and china are trading with out OPEC now. U.S oil company's will fight like hell to make money, and hopefully stand up to the EPA. The EPA will toss out some B.S. limitations on our oil production if the Saudis turn up the heat.
|
|
dba
New Member
Posts: 9 
|
Post by dba on Oct 22, 2015 0:52:48 GMT
Just think how much better things would be if fuel prices had raised as much as everything else in the last 50 years.
Honestly, we should be paying $6 a gallon for gas. If it were to jump that far now, it would crooked almost everyone, but if it had slowly climbed that high over the last several decades, think about how many dried up small towns might still be functional.
With cheap fuel, its too easy to jump in the car and drive 30 miles to Lowes or Walmart rather then paying slightly higher prices in small town USA where you live. Thusfore mom and pop eventually go out of business.
Small local economies do much better when fuel prices are higher because people don't drive as much or as far.
People also budget their money to pay for high fuel rather than waste it on the next iGadget that hits the market.
|
|
|
|
Post by sawmilljim on Oct 22, 2015 3:41:10 GMT
One thing no one ever talks about is all the oil Iran and ISIS has that goes to China .Yea they talk sanctions and those countries not being able to sell oil but when it is cheep enough someone somewhere is going to buy it .My guess that is China so in effect those Saudis are twisting in the wind for oil buyers making it cheaper .
The whole Iran deal was trying to get their oil sold in dollars TPTB could care less if Iran has a nuke in every building they are worried about the dollar crashing and their loss of power .
|
|
Deleted
Deleted Member
Posts: 0
|
Post by Deleted on Oct 22, 2015 15:29:15 GMT
One thing no one ever talks about is all the oil Iran and ISIS has that goes to China .Yea they talk sanctions and those countries not being able to sell oil but when it is cheep enough someone somewhere is going to buy it .My guess that is China so in effect those Saudis are twisting in the wind for oil buyers making it cheaper . The whole Iran deal was trying to get their oil sold in dollars TPTB could care less if Iran has a nuke in every building they are worried about the dollar crashing and their loss of power . Last I heard on China, the people there are cutting back on discretionary spending, and that includes petrol for their cars. Will be interesting to see how all this plays out. |
|
|
|
Post by Wanderer0101 on Oct 22, 2015 17:30:11 GMT
The Saudis need $70+ a barrel just to meet their costs. The question has always been how long can they stand the pain and how far into their reserves are the willing to go. There is an OPEC meeting in December and a lot of countries have had enough.
|
|
|
|
Post by sawmilljim on Oct 22, 2015 19:39:31 GMT
The Saudis need $70+ a barrel just to meet their costs. The question has always been how long can they stand the pain and how far into their reserves are the willing to go. There is an OPEC meeting in December and a lot of countries have had enough. I think not even the US is below that dollar amount .Bad thing about gas and oil well Co's is their handy propaganda they put out .In Saudi they can drill a well before supper if they start early and eat late some wells are very shallow and it is sweet crude . Compare that to wells in Co. that are 15,000 deep threw solid rock . One reason Saudi Arabia has dominated the world oil market is that they have more oil that is easier to produce than anyone else. The Saudis have sweet crude that is unmatched for ease of access, recovery and refining. They can bear to sell at $15/barrel without going bankrupt, something no one has done since the Los Angeles basin almost a hundred years ago. So they are well-positioned for this economic war with oil. The nominal cost of oil production for various countries is: Saudi Arabia – $21/bbl www.forbes.com/sites/jamesconca/2015/07/22/u-s-winning-oil-war-against-saudi-arabia/Also a lot of bull to filter out here too. Then you filter in Iran and the oil stole being sold and not counted for still lowers what the market price would otherwise stand . Did you know in the US they store natural gas in caves to keep from flooding the market with excess gas ? |
|
|
|
Post by paisley on Oct 22, 2015 20:00:19 GMT
|
|
|
|
Post by Wanderer0101 on Oct 22, 2015 20:42:59 GMT
The Saudis need $70+ a barrel just to meet their costs. The question has always been how long can they stand the pain and how far into their reserves are the willing to go. There is an OPEC meeting in December and a lot of countries have had enough. I think not even the US is below that dollar amount .Bad thing about gas and oil well Co's is their handy propaganda they put out .In Saudi they can drill a well before supper if they start early and eat late some wells are very shallow and it is sweet crude . Compare that to wells in Co. that are 15,000 deep threw solid rock . One reason Saudi Arabia has dominated the world oil market is that they have more oil that is easier to produce than anyone else. The Saudis have sweet crude that is unmatched for ease of access, recovery and refining. They can bear to sell at $15/barrel without going bankrupt, something no one has done since the Los Angeles basin almost a hundred years ago. So they are well-positioned for this economic war with oil. The nominal cost of oil production for various countries is: Saudi Arabia – $21/bbl www.forbes.com/sites/jamesconca/2015/07/22/u-s-winning-oil-war-against-saudi-arabia/Also a lot of bull to filter out here too. Then you filter in Iran and the oil stole being sold and not counted for still lowers what the market price would otherwise stand . Did you know in the US they store natural gas in caves to keep from flooding the market with excess gas ? Your numbers are actually wrong. I was referring to the cost of running their government, not their lift costs which is an entirely different thing. In addition, the ease of getting hydrocarbons in Saudi while once true has become something of a myth. A lot of the old fields are watering out and a lot of the new fields are not nearly what they were anticipating. I spent a lot of time there the last few years looking at some really dificult tight prospects that didn't pan out and some deep water gas stuff that also didn't work. I wouldn't put much faith in what the Saudis say, they are masters at misleading and bluffing. |
|
|
|
Post by sawmilljim on Oct 22, 2015 20:57:21 GMT
Well for sure the Saudis don't have the market cornered on deceptive practices I think all Government's are masters at fooling and the shearing of the sheep .
|
|
