Saudi Arabia: No political motives behind oil policy

46 Comments on "Saudi Arabia: No political motives behind oil policy"

J-Gav on Sun, 22nd Mar 2015 11:35 am 



Ha-ha-ha -laughing so hard I peed my pants.

Rodster on Sun, 22nd Mar 2015 11:37 am 



“$100-120 – I think it’s difficult to reach 120 another time…We understand that all countries need higher incomes…We want higher incomes, but we want higher incomes for us and future generations,” Madi added

Pretty much falls in line with what Shortonoil and Gail Tverberg have been saying for some time.

penury on Sun, 22nd Mar 2015 11:53 am 



The world is experiencing de=growth and a reduction in the ability to afford the energy that we produce. As the system continues to contract all energy systems will become less economical until eventually failure becomes the norm and the ability to access energy for the average person becomes impossible. It will take time but it is inevitable. The world is running out of easily exploitable resources.

Perk Earl on Sun, 22nd Mar 2015 1:03 pm 



“We didn’t mean to hurt anybody, our vision is simply the following: the producers which have low costs have to have the priority to produce, but those who have high costs have to wait for their turn to produce,” he said.

That statement is in line with interest in holding market share. Whether or not the high cost producers can produce later, will depend on how high the price can hold once supply has dropped sufficiently to force higher prices. According to short there are price affordability limits that are descending with time along with depletion. $77 a barrel this year and $66 in 2016. Forget about 2017 – let’s see what happens this year and next.

MichaelW. on Sun, 22nd Mar 2015 1:05 pm 



“Saudi Arabia’s motives non-political?”

Everything the House of Saud does is political. Interesting that they produced 9.42 (or so bpd) and the U.S. nearly the exact same amount.

Who’s kidding who – it is all about politics (economics – market share).

MichaelW. on Sun, 22nd Mar 2015 1:11 pm 



No oil will never again reach the $100 mark.

PPB goes up, and fracking right back on-line. Too much competition; the risk and hope for profit. So the attempt to destroy the oil-fracking industry, in the short-term, only makes it stronger through consolidation; with the ability to go back on-line when immediately profitable. Added to the mix? – electric cars, wind, solar, geothermal, and electric cars.

Will oil always be needed – definitely.

Luckily there’s a happy medium – oil at $40-45 U.S.

The best case scenario – it’s a win-win-win.

MichaelW. on Sun, 22nd Mar 2015 1:19 pm 



The difficult part (not really so), is to get those with vested interest (T. Boone Pickens et. al) to understand the new reality.

Case in point – Costa Rica for 75 days running has been cost-neutral through hydro-electric. Though a rainy season, all they need to do is add solar and wind. One of the poorest of the poor nation states on the planet – needs no oil.

Go figure.

High oil prices make Wall-Street rich, props up fake regimes, and does nothing for the consumer.

Lower oil prices reduce the cost per gallon at the pump, puts money (leaves money) in the pocket of consumers, who through needs must spend it – and props up the economies of all nations – monetarily. Again, a win-win-win scenario based upon John Maynard Keynes and George C. Marshalls vision and proof of same.

MichaelW. on Sun, 22nd Mar 2015 1:33 pm 



The worst county now suffering – Greece.

So much of their economy based upon shipping, tankers simply going in circles at 1/5th speed (yet if lease agreements covered and written properly), they’ll be ok. There is nowhere to put the crude – supply exceeded demand. And all those fracking holes drilled now idle – the seepage from the shale renews longevity.

What do I mean; shale oil produces quickly and has declining results – and those now left idle build a pocket doubling (when once again tapped) output.

MichaelW. on Sun, 22nd Mar 2015 1:46 pm 



“The National Oil Reserve.” U.S.

Anyone ever hear of it, or George Bush the 2nd pressured to tap it?

No.

Why?

Shale oil is our reserve. Americans are not stupid – nor are they foolish.

MichaelW. on Sun, 22nd Mar 2015 1:49 pm 



And that is why Americans want solar.

That is why Americans want energy independence(even if it temporarily costs more) in the short-term.

It is what has made this country great; this melting pot of people come together from all nations.

Though not perfect – we are perfect in imperfection.

MichaelW. on Sun, 22nd Mar 2015 2:20 pm 



And to Wall Street.

You look to the quarter; 4 times annually. You look to long and shorts (the book). Elon Musk looks three years ahead.

A Russian, in this melting pot of America.

I highly recommend leaps.

:).

MichaelW. on Sun, 22nd Mar 2015 2:21 pm 



The post above –

Just so know I know.

MichaelW. on Sun, 22nd Mar 2015 2:22 pm 



,

correction above.

Look, for now at the short-term.

“Triple witching hour,” when everything changes.

MichaelW. on Sun, 22nd Mar 2015 2:24 pm 



No doubt.

On the exchanges tomorrow will be volatile.

Be prepared.

MichaelW. on Sun, 22nd Mar 2015 2:27 pm 



I’ll even coin a new phrase …

“Leap the leaps, even those “out of the money.”

Apneaman on Sun, 22nd Mar 2015 2:28 pm 



MichaelW, your Costa Rica example does not really apply to N America where, over successive generations, we have built a multi Trillion dollar infrastructure based on the automobile so a 100 million or more commuters can drive back and forth to work and shopping everyday. It is a good idea, but we will never see it, because there would need to be a fundamental shift in the growth mentality and a willingness on the part of those who are profiting nicely from the current arrangement to give up their control/power. Even it that happened we would still need trillions more to implement it. Scale is everything.

MichaelW. on Sun, 22nd Mar 2015 2:31 pm 



You’ll shit your pants in 2 months,

and be rich on the third month.

Titans will dump tons of money.

Yet they will be cornered – and you rich.

MichaelW. on Sun, 22nd Mar 2015 2:38 pm 



“Scale is everything,” you said.

Yes, I agree with what you said. But everything changes, and this world that we live in is changing faster than ever imagined – exponentially.

Nothing – ever remains the same.

Funny story, about 30 years ago GM produced electric vehichles; about 20 plus prototypes. Those cars, in LA no matter with all of its traffic bumper to bumper, were promised by GM that the leaseholders could buy them after the (5 year I think), time frame.

Those vehicles performed so well, they were actually repossessed by both GM and the government.

True story.

What’s your point?

MichaelW. on Sun, 22nd Mar 2015 2:41 pm 



There is always a bright side.

Imagine how many jobs created by a changeover (roads aside – always needed).

Think beyond the present – look at possibilities.

MichaelW. on Sun, 22nd Mar 2015 2:45 pm 



Trillions.

I was amazed to read a decade how many U.S. treasury notes were held by China.

I was amazed to read, recently, how much debt China owes abroad.

A dichotomy.

Sure, we could deflate the dollar, pull all of our factories out of China, pummel them economically – yet that would lead to war – would it not when people so desperate are willing to do anything simply to survive.

So a question – and solutions given.

MichaelW. on Sun, 22nd Mar 2015 2:47 pm 



Look to the past …

For solutions to the present.

For if you not – mistakes again repeated.

MichaelW. on Sun, 22nd Mar 2015 3:04 pm 



Too much – too soon – and yet.

A thought. The U.S. (slush fund) gives how much money abroad (including Pakistan).

What if all ties were cut – and that money given to South America (the Americas), monitored closely to minimize theft, and maybe even Costa Rica.

:).

MichaelW. on Sun, 22nd Mar 2015 3:06 pm 



Tis time for the United Kingdom to step-up.

Tis time for Germany, to again step-up.

Monetarily speaking.

The Euro must survive.

MichaelW. on Sun, 22nd Mar 2015 3:09 pm 



I see wars going on all around me.

How many wars currently in Africa?

How many Nations? (who knows, who cares).

Me.

I care.

MichaelW. on Sun, 22nd Mar 2015 3:11 pm 



And what do they fight about?

Therein lies your true question,

Costa Rica aside – roads aside, and

Roosevelt aside.

MichaelW. on Sun, 22nd Mar 2015 3:13 pm 



Power and money.

Control.

Yet the U.S.A.

MichaelW. on Sun, 22nd Mar 2015 3:21 pm 



So, this thread.

Let’s face it.

The House of Saud did not lower oil prices out of the goodness of their hearts.

If I ever told the truth, surely you see it.

MichaelW. on Sun, 22nd Mar 2015 3:27 pm 



“Power corrupts,

and absolute power corrupts;

absolutely.”

Machievelli.

Why I’m a Proud American.

Apneaman on Sun, 22nd Mar 2015 3:28 pm 



My point is that there is a big difference between the way thing are and the way they should be. It’s not me or anyone here you need to convince…it’s the people with the power/guns. My other point is there are not enough low hanging resources to rebuild/replace the infrastructure. It is already in disrepair and only getting band-aide repairs after the fact. Cities are going bankrupt and abandoning infrastructure and services and you think an even more expensive techno-utopian build out is possible? I have heard more than enough of the techno-utopian cheer-leading to last a lifetime. I have been looking for loop holes for decades and there are none. Your shit is just the flip side of the denier coin.Industrial civilization is done and only the exact date(s) remain unknown. Collapse is a process and we are in the midst of it right now. There’s no fix. There’s no rescue.

Aging US Power Grid Blacks Out More Than Any Other Developed Nation

http://www.ibtimes.com/aging-us-power-grid-blacks-out-more-any-other-developed-nation-1631086

The American Society of Civil Engineers Report Card: D+ Estimated Investment Needed by 2020: $3.6 Trillion

http://www.infrastructurereportcard.org/

Techno Fix – Why Technology Won’t Save Us Or the Environment

https://www.youtube.com/watch?v=1MsUypIHZhc

MichaelW. on Sun, 22nd Mar 2015 3:31 pm 



“Those who forget the past,

are bound to repeat it.”

A Knight Templar.

MichaelW. on Sun, 22nd Mar 2015 3:34 pm 



Apneaman.

I’ll read your links, every day I learn something new is a good day.

For now I see common ground, both optimistic and pessimistic – good enough.

I love, and am intrigued, by all POV’s.

MichaelW. on Sun, 22nd Mar 2015 3:37 pm 



Don’t get me wrong …

I like trees yet never hug them.

Most certainly I love my guns,

and that part of the U.S. Constitution.

Other than that – I’m conservative,
liberal, and independent. Who knew?

MichaelW. on Sun, 22nd Mar 2015 3:43 pm 



So I shall leave this post on a humorous note regarding Moses and the Ten Commandments.

“Though shall not covet thy neighbor’s wife.”

Well, I coveted, after six months; and then coveted many times.

Well hell, If Abraham had so many wives, couldn’t I at least covet???

Good speaking with you; I’ll read the Talmud.

MichaelW. on Sun, 22nd Mar 2015 3:45 pm 



Jeez, almost forgot.

Already read that.

And can’t take back the coveting.

:).

MichaelW. on Sun, 22nd Mar 2015 3:51 pm 



Okay, read your post in-full.

“Techno-utopia.”

I suppose that was said about Edison.

Most likely Henry H. Ford as well, when he offered triple the going rate for employees(they had two days off but also had to go to church – a caveat lest you think my unknowledgeable), when he put the assembly line into place.

Or Eli Whitney and the Cotton Gin.

Or Mark Twain (Samuel L. Clemens).

Or Benjamin Franklin.

Or every single invention benefiting mankind.

You’ve worn me out – for one single day.

MichaelW. on Sun, 22nd Mar 2015 3:53 pm 



All those cited above –

destroyed industries.

Should I buy a bow and arrow?

MichaelW. on Sun, 22nd Mar 2015 4:01 pm 



So, be careful of you write,

when you respond to me.

.

I know a whole lot – about a lot.

MichaelW. on Sun, 22nd Mar 2015 4:03 pm 



“Power grid black-outs.”

A thing of the past.

Three years from now.

Solar panels on the roof.

MichaelW. on Sun, 22nd Mar 2015 4:07 pm 



The Cable Industry.

Tons of money.

Yet those damn satellites,

and whatchamacallit – wifi?

No doubt discussed in Board Rooms.

Many years ago. “Who’s this Ted Turner Guy?”

So advice to those in the oil-patch;

Simply go with the flow.

J-Gav on Sun, 22nd Mar 2015 4:29 pm 



‘Leaping’ MichaelW – Perhaps a little effort would be in order to get your quotes straight? “Power tends to corrupt and absolute power corrupts absolutely,” comes from Lord Acton, (a 19th C Englishman, not Machiavelli); and “Those who cannot remember the past are condemned to repeat it” is from 20th C philosopher George Santayana, not a medieval Templar.

GregT on Sun, 22nd Mar 2015 4:45 pm 



“Solar panels on the roof” will do little to solve “Power grid black-outs” three years from now.

A bow and arrows would be a good idea, but firearms, ammunition, and reloading supplies would be better.

“I know a whole lot – about a lot.” And a whole lot less – about a lot more.

“Or every single invention benefiting mankind.” Unfortunately, the road to hell is paved with good intentions. Most of those inventions benefitting mankind, are leading us down the path to our own demise.

Perk Earl on Sun, 22nd Mar 2015 5:19 pm 



“Everything the House of Saud does is political.”

That’s a blanket statement with no supporting links–therefore false, Michael W.

Also, please do not ruin the message boards by thinking you are winning by prolifically posting. Make a post longer if you have more to write.

hculliton on Sun, 22nd Mar 2015 6:17 pm 



MichaelW: Jesus, man! Do you always write in Haiku form? It’s rather hard for simple minds to follow lol!

Bandits on Mon, 23rd Mar 2015 2:14 am 



MichaelW = perfect idiot.
Says the poorest country does not need oil. Read no more of his denial BS. When a jackass spruiks this nonsense, you know he is most probably a shill. Knows for sure if he a made a single post, he would get beat between the eyes with a 4X2.

BobInget on Mon, 23rd Mar 2015 9:58 am 



http://www.timesofisrael.com/saudis-said-to-mull-air-passage-for-israeli-jets-to-attack-iran/

The Saudi authorities are completely coordinated with Israel on all matters related to Iran,” the European official in Brussels said.

Read more: Saudis ‘would let Israeli jets use their air space to attack Iran’ | The Times of Israel http://www.timesofisrael.com/saudis-said-to-mull-air-passage-for-israeli-jets-to-attack-iran/#ixzz3VDlYKX6W
Follow us: @timesofisrael on Twitter | timesofisrael on Facebook

BobInget on Mon, 23rd Mar 2015 1:11 pm 



(Bloomberg) — Saudi Arabia and its Gulf partners will take “necessary measures” to restore stability in Yemen if peace talks fail to resolve the growing conflict there, the Saudi foreign minister said.
“We hope that this can be done peacefully but if it is not done peacefully, certainly countries of the region will take the necessary measures to protect the region from the aggression,” Saudi Foreign Minister Prince Saud al-Faisal said Monday during a press conference in Riyadh.
His comments came after the internationally recognized government in Yemen, headed by Saudi ally President Abdurabuh Mansur Hadi, appealed for Gulf military support in its fight against Shiite Houthi rebels. Hadi has asked the six-member Gulf Cooperation Council, led by Saudi Arabia, to impose a no-fly zone and send troops to stop the Houthi advance, his Foreign Minister Riad Yassin told Saudi newspaper Asharq al-Awsat.
Fighting in Yemen between the Houthis and forces loyal to Hadi is threatening to escalate into a full-blown civil war, increasing the risk that neighboring Saudi Arabia, the world’s biggest oil exporter, will be drawn in. The erosion of government authority has already allowed al-Qaeda to take root in Yemen and use it as a base for attacks.
‘Brink of Disaster’
The Saudis and their allies among the Sunni Muslim monarchies of the Persian Gulf say that Iran is behind the rise of the Houthis, who advanced from their base in north Yemen to capture the capital Sana’a last year. The Houthis, who have been targeted by a series of al-Qaeda attacks, accuse Hadi and his Gulf supporters of tacitly encouraging the jihadists.
Saudi Arabia has agreed to host talks between all factions in Yemen to “bring the country back from the brink of disaster,” Prince Saud said. United Nations-backed negotiations between the warring parties have broken down, and the Houthis have ruled out attending talks in Saudi Arabia.
Yemen was split into north and south before its reunification in 1990, and the current conflict has raised the prospect of renewed partition. In the past week fighting has flared up in the south, where Hadi is seeking to regroup after fleeing the Houthi-held capital last month.
Tear Gas
Skirmishes broke out in Taiz on Monday, after pro-Houthi security forces fired tear gas and live rounds at thousands of people protesting their advance into the southern city in the past few days.
The Houthis are collaborating with Ali Abdullah Saleh, the still-influential ex-president who ceded power to Hadi under a 2011 accord brokered by Saudi Arabia.
The Houthis declared an armed mobilization for war on Saturday. In a televised address the following day, their leader Abdulmalik al-Houthi urged Yemen’s tribes to send fighters and money. He accused Hadi of collaborating with al-Qaeda and Islamic State, and being a “puppet” for foreign forces.
The UN Security Council on Sunday urged a return to dialogue and warned that the country was sliding closer to civil war.
To contact the reporters on this story: Glen Carey in Riyadh at gcarey8@bloomberg.net; Mohammed Hatem in Dubai at mhatem1@bloomberg.net
To contact the editors responsible for this story: Alaa Shahine at asalha@bloomberg.net Ben Holland, Mark Williams
Yemen Saudi Arabia War Military Oil Muslim Persian Gulf Iran United Nations Money