Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on January 11, 2015
Saudi prince: $100-a-barrel oil ‘never’ again
Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution. In fact, in the last two weeks, several major rig operators said they had received early cancellation notices for rig contracts. Companies apparently would rather pay to cancel rig agreements than keep drilling at these prices. His royal highness, who has been critical of Saudi Arabia’s policies that have allowed prices to fall, called the theory of a plan to hurt Russian President Putin with cheap oil “baloney” and said the sharp sell-off has put the Saudis “in bed” with the Russians. The interview has been edited for clarity and length.
Q: Can you explain Saudi Arabia’s strategy in terms of not cutting oil production?
A: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.
Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.
Having said that, the decision to not reduce production was prudent, smart and shrewd. Because had Saudi Arabia cut its production by 1 or 2 million barrels, that 1 or 2 million would have been produced by others. Which means Saudi Arabia would have had two negatives, less oil produced, and lower prices. So, at least you got slammed and slapped on the face from one angle, which is the reduction of the price of oil, but not the reduction of production.
Q: So this is about not losing market share?
A: Yes. Although I am in full disagreement with the Saudi government, and the minister of oil, and the minister of finance on most aspects, on this particular incident I agree with the Saudi government of keeping production where it is.
Q: What is moving prices? Is this a supply or a demand story? Some say there’s too much oil in the world, and that is pressuring prices. But others say the global economy is slow, so it’s weak demand.
A: It is both. We have an oversupply. Iraq right now is producing very much. Even in Libya, where they have civil war, they are still producing. The U.S. is now producing shale oil and gas. So, there’s oversupply in the market. But also demand is weak. We all know Japan is hovering around 0% growth. China said that they’ll grow 6% or 7%. India’s growth has been cut in half. Germany acknowledged just two months ago they will cut the growth potential from 2% to 1%. There’s less demand, and there’s oversupply. And both are recipes for a crash in oil. And that’s what happened. It’s a no-brainer.
Q: Will prices continue to fall?
A: If supply stays where it is, and demand remains weak, you better believe it is gonna go down more. But if some supply is taken off the market, and there’s some growth in demand, prices may go up. But I’m sure we’re never going to see $100 anymore. I said a year ago, the price of oil above $100 is artificial. It’s not correct.
Q: Wow. And you said you are in agreement with the Saudi government to not give up market share?
A: This is the only point I’m agreeing with the Saudi Arabian government on oil. That’s the only point, yes.
Q: Should the Saudis cut production if they get an agreement with other oil producing countries to take oil off the market?
A: Frankly speaking, to get all OPEC countries to approve and accept it, including Russia and Iran, and everybody else, is almost impossible You can never have an agreement whereby everybody cuts production. We can’t trust all OPEC countries. And can’t trust the non-OPEC countries. So it’s not on the table because the others will cheat. The past has proven that. When Saudi Arabia cut production in the ’80s and ’90s, everybody cheated and took market share from us. Plus, remember there is an agenda here also. Although Saudi Arabia and OPEC countries did not engineer the reduction in the price of oil, there’s a positive side effect, whereby at a certain price, we will see how many shale oil production companies run out of business. So although we are caught off guard by this, we are capitalizing on this matter whereby we’ll live with $50 temporarily, to see how much new supply there will be, because this will render many new projects economically unfeasible.
Q: What about the theory of the pressure on the Russians? There’s a theory that the U.S. and the Saudis have agreed to keep prices low to pressure Russia because of what Putin has done in Ukraine.
A: Two words: baloney and rubbish. I’m telling you, there’s no way Saudis will do this. Because Saudi Arabia is hurting as much as Russia, period. Now, we don’t show it because of our big reserves. But I’ll tell you Saudi Arabia and Russia are in bed together here. And both are being hurt simultaneously. And there’s no political conspiracy whatsoever against Russia. Because we are shooting ourselves in the foot if we do that.
Q: You said the price of oil will dampen the shale revolution in America. How?
A: Shale oil and shale gas, these are new products in the market. And we see big ranges. no one knows for sure what price is the breaking point for shale. Wells have a higher production cost. And very clearly these will run out of business, or at least not be economical. At $50, will it still be economically feasible? Unclear. This is a very much developing story.
Q: Some people believe this crash in oil will create a lot of new mergers in the energy industry. Do you agree?
A: No doubt about that. For sure there’ll be a lot of consolidation in the market. Because many small and medium-sized companies can’t afford this. Because they are very much dependent on the price of oil. Big companies like Exxon and Chevron are weathering the oil market crash because they are integrated vertically. But no doubt there’ll be some mergers and acquisitions coming in one to two years.
Q: Let me switch to the terrorism in Paris. Terrorists killed the cartoonist who wrote cavalier jokes about the prophet Mohammed. What is your opinion on this?
A: What took place is a horrendous crime that no one can permit and accept. And unfortunately these small minority people are ruining the name of Islam. Now the whole world — Muslims, Christians, Jews, Hindus, Buddhists, atheists — have to come together and be united, and be sure to eliminate those minority of the Muslim community. Those that hijacked our religion and try to eliminate them not only militarily. That’s happening right now against ISIS (the Islamic State) by the Americans and their allies. But also mentally, educationally and culturally, also. This is a disease we are getting at now. This really will put us in the Middle Ages unfortunately. It feels like the Middle Ages right now. But I think that the world is united. I just heard, for example, (U.S. Secretary of State) John Kerry giving a speech in French, which was very nice of him to do. It was a calming process for the French people. My foundation is in communication with the presidential palace in France and the French government, to see what we can do to … (support) these families and these victims, innocent victims that were under attack. And then we have to show that Islam really is united with Christianity, and Judaism, and other religions in the world to limit this disease from from Earth.
Q: Back to finance. Interest rates have gone down. The 10-year yield dropped below 2%. The Federal Reserve ended quantitative easing. But markets seem to be thinking the other way, that rates are going lower.
A: You are talking about the last two weeks. And remember, the last two weeks were a Saudi panic situation, price of oil collapsing. The stock market collapsing. So don’t use this as the barometer indicator, the last two weeks. This was a panic situation. The Fed is navigating rates higher slowly.
Q: The stock market started the year off with heavy selling. What about some of your other investments, in media, banking and in technology? Such as Twitter or jd.com. Would you put new money to work in this market today?
A: Clearly the year began with a sell-off because there are so many events that came together. People are taking profits because 2014 was very good. And also, they had this oil crisis, whereby everyone was caught off guard by this major crash in the price of oil. But I think the U.S. economy is doing really very well. Especially relative to the rest of the world. The big question right now is what happens to Germany. Because Germany really is the anchor of all Europe. Also, Japan, and India, and China. These are the three major countries that the world depends on. So, there are opportunities. But also many risks here. If Japan, China, India and Germany improve 1% or 2%, this would be a major improvement for growth globally.
Q: Do you think the European Central Bank should come up with stimulus?
A: There’s a struggle right now between ECB President Mario Draghi, who is pushing for a stimulus, and Angela Merkel of Germany, who is worried about having inflation. We’re seeing a clash over there between these two ideas. But I think that Draghi is preparing the market for a stimulus. Yes.
38 Comments on "Saudi prince: $100-a-barrel oil ‘never’ again"
shortonoil on Sun, 11th Jan 2015 7:28 pm
Anyone who says they anticipated this 50% drop (in price) is not saying the truth.
We called for price declines in May, and posted this page in September.
http://www.thehillsgroup.org/depletion2_022.htm
We expected a decline of 25%; 50% sort of blew us away. Things must be much worse than is commonly believed somewhere in the world of finance. But the Prince is correct, the world will never see $100 oil again.
Makati1 on Sun, 11th Jan 2015 8:14 pm
Never say “Never”…
steve on Sun, 11th Jan 2015 8:28 pm
yes I would say would someone want to bet that we will never see $100 oil? That is one of the most foolish statements I have heard in a long time. In a world that is totally manipulated how can you say anything is permanent? I am going to say this is just plain stupid….I will however say that Nicole Foss called this
in a lot of her talks…massive deflation….followed by massive inflation
Davy on Sun, 11th Jan 2015 8:42 pm
We may see $100 oil but not $100 oil and growth. Maybe that will fly with some of you hard hitters. I feel the bumpy descent is upon us so randomness of dysfunction and irrational outcomes will permit strange bed fellows. Short makes a good point though we will probably never see $100 oil like we did in the past. If it happens it will be in a situation of distress not irrational exuberance.
poaecdotcom on Sun, 11th Jan 2015 9:46 pm
“the world will never see $100 oil again.”
Dollar could inflate tomorrow, could half in a month… how can you talk in absolutes in the world of macro economics and finance????…. beats me.
The only absolutes are I use are the Laws of Physics.
Speculawyer on Sun, 11th Jan 2015 10:05 pm
Don’t fall for it. All he is trying to do is instill a sense of security in cheap oil such that we allow ourselves to remain addicted to oil. Then after everyone buys a bunch of SUVs, Trucks, and other gas-guzzlers, the price will eventually rise and he just says “oops, I was wrong.”
But a LOT of people will just believe what they want to be true.
SilentRunning on Sun, 11th Jan 2015 11:24 pm
$100 says that we will see >$100 a barrel oil within 5 years.
Perk Earl on Sun, 11th Jan 2015 11:59 pm
‘Oil prices extend falls; Goldman Sachs slashes price forecasts’
http://www.reuters.com/article/2015/01/12/us-markets-oil-idUSKBN0KL03Y20150112
“Analysts at Goldman Sachs lowered their three-month price forecast for Brent to $42 a barrel from $80. They set their forecast for U.S. crude at $41 a barrel, down from $70, adding it would need to stay near $40 for most of the first half of 2015 before it would hold up shale oil investments.”
“To keep all capital sidelined and curtail investment in shale until the market has rebalanced, we believe prices need to stay lower for longer,” the analysts said in a report.
The weakness across oil markets became evident last week when for the first time since 2009, the entire oil complex slipped into contango, a market structure where prices for immediate delivery is cheaper than for delivery in future months.
http://www.bloomberg.com/energy/
Crude Oil (WTI) USD/bbl. 47.47 -0.89 -1.84% Feb 15 00:23:32
Crude Oil (Brent) USD/bbl. 49.24 -0.87 -1.74% Feb 15
Northwest Resident on Mon, 12th Jan 2015 1:48 am
I believe the prince on two points. First, the assertion that the Saudis are somehow manipulating the oil price to hurt Russia IS “pure rubbish”. Second, the price of oil will never go above $100 again.
The $100-plus price of oil WAS artificial, made possible ONLY by a massive infusion of QE liquidity. QE and ZIRP enabled one last long burst of hyper economic activity, but it was a one-time burst. It can’t be repeated.
The world economy is now so drenched in debt that further QE infusions no longer provide sufficient bang for the buck, if any at all. We’re talking severely diminishing returns. We’re talking a global economy so burdened by debt that it can barely withstand the weight.
We are in the process of saying good-bye to the Age of Oil. Obviously, judging by some of the posts on this article, some people don’t get it, yet. But they will. And soon.
There is NO more boom coming to save the day. We’re riding the LAST bust down into a black hole from which we will never again rise — not with fossil fuel energy. We burned almost all the good stuff up already and what’s left will be barely enough to power a much reduced version of human civilization in the not too distant future, IF they don’t burn up the last few drops of economically obtainable oil on the way down, BEFORE the reset, which they probably will.
Those posters on this forum who are optimistic about another round of $100 per barrel oil are basing their optimism on HOPE and perhaps some interpretation of history that makes them believe another oil BOOM is coming. It isn’t.
The ride down has only just begun. Hang onto your hats, cowboys, get ready for a wild ride.
Why This Is Just the Beginning of the American Oil Bust
“The peak in the number of rigs drilling for oil, according to Baker Hughes’ data series going back to 1987, occurred in the second week of October last year, with 1,609 active rigs. At the time, it was already clear that the oil price plunge wasn’t just a temporary blip. But rigs are contracted for well in advance, and breaking contracts isn’t easy, and changing capital-expenditure plans takes time.
Then late last year, the rig count began to edge down. But on Friday, Baker Hughes reported that oil rigs dropped by 61 to 1,421 rigs. It was the largest week-to-week drop in the data series. In percentage terms (-4.12%), it was the largest drop since the Financial Crisis.
And yet, it’s just the beginning.”
http://wolfstreet.com/2015/01/12/why-this-is-just-the-beginning-of-the-american-oil-bust/
GregT on Mon, 12th Jan 2015 1:59 am
I believe the prince on one point. The price of oil will never rise above $100bbl again. I am fully convinced that this pullback is, at least in part, a collusion between TPTB in the US, and the Saudis, to hurt the Russian and Iranian economies in a feeble attempt at maintaining the petro-dollar and USD global hegemony.
I absolutely agree 100% with the rest of what you are saying NWR. My only question at this point, is how long is it going to take before TS really HsTF? I hope that we are looking at a few years at least.
Bandits on Mon, 12th Jan 2015 4:47 am
It was bubble and it has been pricked. Many have been saying it for a long time and it’s normal for these things to eventually deflate.
It’s not the only bubble. Wall Street has been running on fumes since QE ended. Most likely not a conspiracy, it’s just the natural end of a mammoth Ponzi scheme.
Many countries, banks, corporations, business and individuals will be left holding worthless tickets.
If there was collusion, it has cost the conspirators a few trillion dollars. What reward could be big enough, especially if globalization collapses.
Davy on Mon, 12th Jan 2015 7:04 am
Yea, Bandit, when bubble deflate they do so in irrational ways. Bubbles grow in rational ways even if the growth has an underlying irrational meme. I would expect nothing normal or rational in a stable way i.e. predictable. There has been too much disturbance to the fundamentals across a broad spectrum of the economy and society. The damage has been done and is irreversible. We know this because of the degree and extent of central bank repression and debt liquidity efforts.
I am with others here allowing for a speculative price jump in oil however this will not be with an underlying stability of economic fundamentals. What I am saying is oil may spike but not because of healthy growth. It will spike because the fundamentals of supply, demand, and finance (FX/dollar) are going to be further disturb by bubble deflation in multiple areas of post central bank repression and debt liquidity efforts. The Fed is an in “Alice and Wonderland” world of its own making.
Expect more distortions as the bumpy descent causes further disequilibrium with central banks distorting central bank responses. Sometimes the only healthy alternative is a strong contraction. Unfortunately a strong contraction at this point may not be survivable hence my bumpy descent meme. I see no way to determine the time frame nor the degree at this point but the trend seems certain. The trend is down
Rob on Mon, 12th Jan 2015 8:52 am
Are we seeing price controls? Will be see rationing next?
shortonoil on Mon, 12th Jan 2015 8:59 am
“Never say “Never”
The reason that oil will never see $100 again is simply because oil will never be worth $100 again. The value of a barrel of oil to the economy has fallen 73% from 1960 to 2014. Oil is getting so weak that it can barely power its own production. It is not logical to assume that it will be able to power the rest of a $73 trillion world economy for much longer.
The FED can print money until they themselves implode. The FED can not put one BTU back into a barrel of oil. The FED is now facing an opponent for which it is no match; it has no weapons to battle the Laws of Physics! Reality is coming a calling.
http://www.thehillsgroup.org/
GregT on Mon, 12th Jan 2015 9:04 am
My predictions for 2015:
The western corporate media will ramp up with yet another set of false accusations against Brashar Assad. The UN security council will be circumvented disallowing further Russian and Chinese vetoes and any attempts at diplomacy. Assad will be ousted plunging Syria even further into sectarian violence and civil war, and Iran will be the next target for destabilization.
The US is already waging War against the Russians. Her banks and business leaders have already been targeted, and the proxy war in Ukraine is being ramped up to an entirely different level as we speak. Nothing can be solved by further fanning the flames of the civil war in Ukraine, other than the hopes of officially dragging the Russians into the escalating conflict on her border. Unless Russia can continue to exercise restraint, the Neocons will drag the globe into WW3 in relentless pursuit of their NWO.
“The Road To War With Russia: We’re not only on it; we’ve already arrived.”
http://www.peakprosperity.com/blog/91007/road-war-russia?utm_campaign=weekly_newsletter_161&utm_source=newsletter_2015-01-09&utm_medium=email_newsletter&utm_content=node_title_91007
poaecdotcom on Mon, 12th Jan 2015 9:21 am
I cannot believe there are so many posters on this site who do not fully understand macro economics.
The dollar is an arbitrary fiat construct backed up by NOTHING except FAITH in future energy dependent growth.
Therefore its price relative to any REAL form of goods and services could change dramatically based on many variables including money supply (credit), average velocity of transactions and MOST IMPORTANTLY the CONFIDENCE or FAITH in said currency.
There are exactly ZERO examples of fiat currencies in history doing anything other than reaching their intrinsic value of zero in time. the dollar will be no different.
Therefore, to speak of the price of anything never doing this or never never that is plain folly and demonstrates a lack of understanding.
One day a barrel of oil will be worth an infinite amount of dollars!!!
Northwest Resident on Mon, 12th Jan 2015 9:30 am
poaecdotcom — I get your point. Sort of. But not really. Because, long before the dollar reaches a value of zero, the economic structures that enable the extraction of oil will have collapsed. I guess we can all imagine a point in the future where very little if any oil is being extracted, those who made it through the bottleneck are trying to rebuild, and there is an entire warehouse of dollar bills discovered that has no worth other than fire starter, certainly not tradable for a rare barrel of oil. But let’s rephrase it this way: As long as BAU continues, before economic collapse renders all or most currencies worthless, the price of oil will never again reach $100 per barrel. Good prediction?
Pops on Mon, 12th Jan 2015 9:39 am
It is interesting that the folks who say dollars are worthless are the ones who worry so much about their worth. A dollar, to me, is simply a representation, a token, of physical wealth or in my case actual work. As long as I get a dollar’s worth of stuff for a dollars worth of work, I could care less what it is worth “someday.”
poaecdotcom on Mon, 12th Jan 2015 9:43 am
“Because, long before the dollar reaches a value of zero, the economic structures that enable the extraction of oil will have collapsed.”
“he price of oil will never again reach $100 per barrel. Good prediction?”
No not necessarily at all.
IN 2015 the IMF could release a gold backed SDR (global currency that is waiting in the wings to re-liquefy global finance in the next credit crunch). In that scenario, there would be a MASSIVE dollar flight and BAU could limp along a little longer under a new currency standard.
Remember the dollar has been the world reserve currency for only 70 years (Bretton -woods) and has been fully fiat for 40 (Nixon gold).
When it comes to future prices in dollars there is no such thing as a good prediction!!
Davy on Mon, 12th Jan 2015 9:43 am
Greg, I would take a more balance approach to the gangster regimes of Russia, Syria, and Iran being big boys and creating part of their problems. I agree on the dangerous US actions and will label US foreign policy as enemy number one to world peace. The US is squarely in the wrong in the Ukraine from the start. What could have been a sleepy corner of Eastern Europe is now a failed state in the making.
These policies are exactly the wrong policies in this current global economic instability. This conflict with Russia is the most dangerous existential geopolitical situation currently with an Iranian war a close second. This can only end bad with war or Russian economic default. Russia is a too big to fail component of the global system. In this regards an economic default would send a shock wave contagion through the system. War, well we know how that would end.
The US policy of hurting Russia economically as oil prices fall is now at a dangerous point. It is entirely possible Russia could find it in their interest and justification to take a counter step of economic war or hot war. An energy war is not out of the question. NUK war is not out of the question at least regionally. Yet, how do you keep a NUK war regional?
Greg, I am trying not to flag wave here. I hate flag waiving but I hate gangster regimes getting beneficial press. I am admitting you are right with the fact US Ukrainian policy is in the wrong. My point is Russia, Iran, and Syria have played their part and do not deserve being labeled a victim. You can say this was brought upon these countries by the west “agreed” yet, there are forces within these countries that will and are benefiting from conflict. These forces welcome conflict as much as the US foreign policy sees advantage.
GregT on Mon, 12th Jan 2015 10:40 am
Davy,
I obviously see things somewhat differently than you do Davy. It is the psychopaths everywhere that rise to the top. The vast majority of normal people only want to live their lives in peace. I say let the psychos fight it out amongst themselves, and stop dragging the rest of us into their wars while they sip their Cognac, and smoke their big fat cigars. As long as people continue to fall for the lies, deception, and propaganda, the wars will continue to be waged. The only way for this shit to ever stop, is for the majority of us to wake up, and to stop believing in the brainwashing and flag waving of the psychos. There is one group of monsters that have been waging non-stop wars around the globe for well over a half a century, and it isn’t the Russians, the Iranians, the North Koreans, or the Chinese psychopaths that have done so. The people living in the country being controlled by those monsters, have for the most part fallen into their trap. They will even put there own children in harms way to continue to line the pockets of those that could care less about anyone else but themselves.
I am not picking sides here Davy. All sides are wrong. The instigators are just more wrong.
Davy on Mon, 12th Jan 2015 11:44 am
That works for me Greg. You know how I am I feel compelled to waive the upside down flag occasionally.
Mark Ziegler on Mon, 12th Jan 2015 12:14 pm
Oil will never reach 100.00. Not in our lifetimes and that depends on how old you are. I believe the man who said that is ready to die. In this regard he may be correct.
cybersleauth
poaecdotcom on Mon, 12th Jan 2015 12:27 pm
Oil will never reach 100.00. Not in our lifetimes…..
By logical implication you also affirm that we will not have a currency crisis either.
I would suggest one is coming and soon.
Speculawyer on Mon, 12th Jan 2015 12:54 pm
“There are exactly ZERO examples of fiat currencies in history doing anything other than reaching their intrinsic value of zero in time. the dollar will be no different.”
I love it when people write sentences that contradict themselves.
poaecdotcom on Mon, 12th Jan 2015 12:58 pm
I DON’T love it when people think they understand English.
steve on Mon, 12th Jan 2015 12:59 pm
I think poaecdotcom is on here we are playing a whole new ball game now and we are going to see some crazy manipulations in the future…but I don’t know how the herd will panic and where they will run…
James Tipper on Mon, 12th Jan 2015 2:16 pm
Baloney! I always pictured the crisis as large massive inflation followed by years of deflation. Think about it, inflation would ruin savings and make people use up all their savings or risk losing everything. And just then when people’s savings(namely Babyboomers and older gen-Xers) are obliterated, then turn around and have deflation.
Wages will tumble and prices will tumble but less goods will be available. International goods will vanish for the most part, especially seasonal crops(like crops grown in South America and shipped during Winter to North America). Gas will become harder to come by, more stations will have to close as demand vanishes. Chaos and unemployment will ensue and no one knows from there.
Time Frame for events: 5-10 years
peakyeast on Mon, 12th Jan 2015 2:22 pm
poaec: Since I have read many of the commenters earlier comment it seems clear to me that they all understand the nature and reality of inflation and the relation to oil pricing.
And perhaps they understand the comment as “100$ inflation adjusted” or at its current value which is likely that the prince would leave out of the sentence.
poaecdotcom on Mon, 12th Jan 2015 3:39 pm
east, of course you can infer anything you wish but I take the posts and the words of the prince at face value.
The “inflation adjusted” dollar to which you refer is a very squirrely, obfuscating concept. If you are using CPI to discount your numbers then you are buying into one of the most manipulated metrics outside of China!
Shadowstats has the moving “inflation” double, triple of more than the official B.S……
I doubt the prince was mulling over which form of discounting he was going to use in the future if/when oil prices approached $100. No, he was talking about NOMINAL price.
Makati1 on Mon, 12th Jan 2015 7:43 pm
Never say “Never”. LMAO
Oil could return to $100 next week or next year or never, but to claim it will not is to claim you know the future in certainty. Every time there is a problem, hundreds of Cassandras pop up and proclaim this or that. Then, when it doesn’t happen, it is forgotten until the next event and a new group of predictions pop up from the same Cassandras. The sheeple are getting senile. Short term memory is failing them. It is less than 1 minute long by now.
Has anyone heard anything about the airliner that the US backed Kiev Nazi army shot down? No. When the idea and proof started to show that the Us was behind it, it was quickly covered up and banished from Western news.
That is what has been happening to everything that the US has done in the last 15 or so years. Failures and coverups and banishment from the MSM news. No wins. No successes. Nothing but problems at home for Americans and more problems for the EU’s failing economy and union. The internet is difficult to control and that is why it has to go. Wait and see.
Amvet on Tue, 13th Jan 2015 8:31 am
Even as early as the 1980s, when I was in Saudi Arabia, the Saudis cooperated closely with the US to keep oil prices low. Normal Saudis knew about the overproduction of oil to help the US economy and hated it. Now, we, the USA, are fighting an economic war on Russia, Iran, and Venezuela with the low oil price which is controlled by massive tradeing done by our banks and funds. The Saudis hate Iran (Iran is Shiite, not Wahabi.) and now Russia because Russia has helped their Syrian enemy. When will the low price end. Probably after the Saudis and our wealthy have picked up many,many, companies and leases at discount prices.
bobinget on Tue, 13th Jan 2015 10:19 am
$100? interday, and then, for micro seconds.
I’m looking for oil to top out over $300 closing the year in a trading range between $150 & $175
The Prince is ‘talking his book’. That’s expected.
(American Vet is bang on)
bobinget on Tue, 13th Jan 2015 11:44 am
Has anyone posed questions..
If oil is so cheap, why doesn’t the US replenish SPR?
If oil is so cheap (plentiful) why are we so desperate
to protect Iraq’s supplies?
If ‘we are swimming in oil’ why are we throwing
Israel under the bus, making nice to Iran, all of sudden?
If oil is so cheap, why is China challenging US China Sea dominance?
If oil is such a glut, why are Republicans drooling to pass Keystone XL?
I over-supply is supposed to be permanent, why are we reluctant to raise Fed gasoline taxes as have so many states?
Why has the Pentagon stressed the importance of
‘controlling’ Iraq and Iran’s oil before Russia does?
shortonoil will rationalize, ‘because oil will get cheaper and (my actual adopted mantra) ‘we won’t be affording it, (oil) any longer’. What shortonoil and others are saying, correct me if i’m wrong. Oils’
usefulness has diminished because we have somehow. magically, (secretly it seems) discovered
other, less expensive, less polluting, sources.
I have a theory why perfectly intelligent folks on this board are ignoring world wide conflicts.
a) Asian , African, South American population growth out of control.
b) Climate Change
c) A world devoured by racial and religious
conflicts spurred on by resource colonialism.
d) Peak Oil
e) So called ‘social media’, now in the hands of what once was thought of as the ‘Lumpen Proletariate’ IOW’s ‘the poor’. Never before have this class been able to connect as easily without
being fire-hosed, teargassed or worse. Not only on a local level but internationally. See Tea Baggers.
As wage disparity grows, we are beyond historical limits now, ‘Crowd sourcing’, flash mobs, acquire
special more ominous (for ruling classes) meanings.
US Forces, IDF, as powerful as they are, are limited
by oil supplies. WHEN Saudi Arabia implodes, oil supplies will at least temporally, be suspended for NATO and other Allied forces.
This current gambit being played out by KSA will
either win back market share or result in a regime change more acceptable to neighbors and ‘guest workers’.
With constant ‘hit and run’ operations, assaults,
in progress, one or more will succeed in limiting
KSA exports, diminishing princely welfare, ending in
general discontent. History tells us, several autocratic regimes will attempt to rule, each instituting minor ‘reforms’. All the while, various power hungry militia groups will disrupt oil flows as is happening rat now in Libya.
Needless to say, further military interdictions in oil supplier’s business will be suspended. People, on the ground, Iraqis, say, will do their best as they have in the past three wars go protect oil assets.
Without US air-cover caring for oil assets become
intenable.
What will the US do about China usurping ‘our’ oil out from under our noses? If we only were tho lose Venezuelan exports we (US) would be in a terrible fix. As it happens, while we were busy bombing the crap out of a dozen different ‘terrorist’ groups, China done run off with ‘our’ oil.
bobinget on Tue, 13th Jan 2015 12:55 pm
Speaking of Saudi Arabia:
DUBAI (Reuters) – A prominent Saudi Arabian cleric has whipped up controversy by issuing a religious ruling forbidding the building of snowmen, described them as anti-Islamic.
Asked on a religious website if it was permissible for fathers to build snowmen for their children after a snowstorm in the country’s north, Sheikh Mohammed Saleh al-Munajjid replied: “It is not permitted to make a statue out of snow, even by way of play and fun.”
Quoting from Muslim scholars, Sheikh Munajjid argued that to build a snowman was to create an image of a human being, an action considered sinful under the kingdom’s strict interpretation of Sunni Islam.
“God has given people space to make whatever they want which does not have a soul, including trees, ships, fruits, buildings and so on,” he wrote in his ruling.
That provoked swift responses from Twitter users writing in Arabic and identifying themselves with Arab names.
“They are afraid for their faith of everything … sick minds,” one Twitter user wrote.
Another posted a photo of a man in formal Arab garb holding the arm of a “snow bride” wearing a bra and lipstick. “The reason for the ban is fear of sedition,” he wrote.
A third said the country was plagued by two types of people:
“A people looking for a fatwa (religious ruling) for everything in their lives, and a cleric who wants to interfere in everything in the lives of others through a fatwa,” the user wrote.
Sheikh Munajjid had some supporters, however. “It (building snowmen) is imitating the infidels, it promotes lustiness and eroticism,” one wrote.
“May God preserve the scholars, for they enjoy sharp vision and recognize matters that even Satan does not think about.”
Snow has covered upland areas of Tabuk province near Saudi Arabia’s border with Jordan for the third consecutive year as cold weather swept across the Middle East.
(Reporting by Sami Aboudi; editing by Angus McDowall and Andrew Roche)
bobinget on Tue, 13th Jan 2015 6:00 pm
https://www.amnesty.org.uk/actions/saudi-arabia-free-raif-badawi-flogged-blogger?utm_source=FBPAGE&utm_medium=Social&utm_content=20150113173012&utm_campaign=Freedom_of_expression
Speculawyer on Tue, 13th Jan 2015 6:23 pm
“Has anyone heard anything about the airliner that the US backed Kiev Nazi army shot down”
Are you Orlov? LOL!
Yeah, the USA just loves Nazis, it would make perfect sense for us to join with Nazis. *eyeroll*.
peakyeast on Tue, 13th Jan 2015 6:45 pm
I wouldnt be surprised speculawyer if “you” did – since the “hiller” family decided to emigrate to the states after the war and was welcomed – and the history of US collaborating, supporting and paying insane “nazi” scientists for the results of their crazy mass murders of civilians with biological weapons – i.e.
https://www.youtube.com/watch?v=VVAu3TZuDZ0
Mind you – im not against americans. Just all psycho- and sociopaths that seems to be concentrated in all positions of power at all times.
If we want a better world – it is those people that needs to be removed permanently.