erranta Posted August 15, 2011 Share Posted August 15, 2011 On December 23, 2008, the spot price fell to $30.28 a barrel ahh, a world without banks. Cheap food, cheap fuel, no inflation tax. Pity it didnt last very long. After decades of despotic imposition - the Saudi Royals are only doing what they are doing to save their 'Royal' arses! Quote Link to comment Share on other sites More sharing options...
erranta Posted August 15, 2011 Share Posted August 15, 2011 Surely this article needs to tell us the number of barrels they need to sell at 90 dollars. If they reduce production by 50% but sell at double the price they dont win. I dream of the day we can tell the middle east to take their oil and go fluck themselves They own or part own nearly every business you deal with in this country. As major shareholders, profits are scooped off to feed Saudi Royals need for greed - not their fellow countrymen. As our economy goes bust - they sell less oil, they also get less profits on less turnover There's probably a triple whammy in there somewhere - like falling share non-wealth If they can't pay their personal 100+ bedroom palace debts off - they get incarcerated in prison and hand chopped off (doesn't apply to Royal family) Quote Link to comment Share on other sites More sharing options...
Crashman Begins Posted August 15, 2011 Share Posted August 15, 2011 They own or part own nearly every business you deal with in this country. As major shareholders, profits are scooped off to feed Saudi Royals need for greed - not their fellow countrymen. As our economy goes bust - they sell less oil, they also get less profits on less turnover There's probably a triple whammy in there somewhere - like falling share non-wealth If they can't pay their personal 100+ bedroom palace debts off - they get incarcerated in prison and hand chopped off (doesn't apply to Royal family) Ha Thats what you think. They win no matter what happens. & have been winning for 30+ years.. do you know why ? Quote Link to comment Share on other sites More sharing options...
oracle Posted August 15, 2011 Share Posted August 15, 2011 Doesn't Russia have the same problem. All based spending on income from an asset which is extremely volatile. Trouble is the $85 price range is probably a bubble price which the global economy can't afford as it needs cheap energy. on the contraray...russia does not(quite have the same problem) their gameplan is to assist in destabilising the middle east and make it an extremely insecure place to try to get oil....while being exceptionally friendly to the west to supplant ME oil...nice bit of leverage. ....while aiding and abetting hostile regimes with arms to make life difficult. germany seems to have taken the bait....they might think they have got one over on the anglo-saxon's for now,but ths one may well come back to bite them on the @rse....they are extremely fearful of a resurgent russia.....which is why we have been set up to take the blame for all the crap going on in ME,but we know that was a set-up(and so do they) combined yank and russian payback could be a bitch. Quote Link to comment Share on other sites More sharing options...
cells Posted August 16, 2011 Share Posted August 16, 2011 @ $100 Saudi yearly production is worth $365B UK GDP > $2000B UK exports $400B Quote Link to comment Share on other sites More sharing options...
cells Posted August 16, 2011 Share Posted August 16, 2011 First we have to find something else on which to base our economy and way of life. SUCH blocks is spoken about this topic. Our economy & our way if life...Yeh...right Humans have needs and wants. Our economy & way of life enables those needs & wants. Our needs are tiny & can be provided with no fossil fuels Our wants are huge & mostly fulfilled & they too require little oil We use oil because its there. It's easy to dig up in huge quantities. As oil peaks (probably decades off...then stagnates (decades more)) we will not see a huge change in our needs or wants or the ability to fulfil them. in fact I would wager 100 years from now when most the fossil fuels are predicted to have gone our production & consumption (of this e want if need) will be more than it is now! Quote Link to comment Share on other sites More sharing options...
Snugglybear Posted August 16, 2011 Share Posted August 16, 2011 SUCH blocks is spoken about this topic. Our economy & our way if life...Yeh...right Humans have needs and wants. Our economy & way of life enables those needs & wants. Our needs are tiny & can be provided with no fossil fuels Our wants are huge & mostly fulfilled & they too require little oil We use oil because its there. It's easy to dig up in huge quantities. As oil peaks (probably decades off...then stagnates (decades more)) we will not see a huge change in our needs or wants or the ability to fulfil them. in fact I would wager 100 years from now when most the fossil fuels are predicted to have gone our production & consumption (of this e want if need) will be more than it is now! If you know who's working on realistic large-scale alternatives for heating, lighting, transport and fertilisers, do share. For one thing, perhaps those posters on this forum who have spare money might like to invest in them. Quote Link to comment Share on other sites More sharing options...
aa3 Posted August 16, 2011 Share Posted August 16, 2011 The Saudis are now doing the smart thing with their oil money.. investing in infrastructure and industry in Saudi Arabia. With less oil money they would have to procede at a slower pace on that development. Which would cause issues in the country like less good opportunity for young Saudis. Quote Link to comment Share on other sites More sharing options...
cells Posted August 16, 2011 Share Posted August 16, 2011 If you know who's working on realistic large-scale alternatives for heating, lighting, transport and fertilisers, do share. For one thing, perhaps those posters on this forum who have spare money might like to invest in them. Heating & transport are not needs like food & air they are wants & wants change depending on the cost of things. Simply put even if no alternative is found to heat homes it isn't important because it isn't a great importance to humanity. So what if you can't keep your home @ 20 degrees 365 days a year. Mad max does not result Likewise transport is at the current scale unnecessary Our 'way if life' is not dependant on 100m barrels a day. Our way of life uses 100m barrels a day because we have access to 100m barrels a day Having said that we already have the technology to replace the majority of oil consumption. Take your pick Efficiency Coal Gas Nuclear Solar Wind We could replace within 25 years 90% of oil/coal/gas with wind & solar if we had to do so. It would mean the current marginal economic spending moves to building rise things Quote Link to comment Share on other sites More sharing options...
cells Posted August 16, 2011 Share Posted August 16, 2011 The Saudis are now doing the smart thing with their oil money.. investing in infrastructure and industry in Saudi Arabia. With less oil money they would have to procede at a slower pace on that development. Which would cause issues in the country like less good opportunity for young Saudis. Many a nation with nil resources have industrialized & have good standards of living. Germany & Japan & France for instance (ironically the UK & usa in comparison to most nations are blessed with a disproportionately large natural resource windfall) Many nations with large oil resources have concentrated on those so much that they have crippled themselves in everything else. Saudi oil money should be used as a savings fund to provide a perpetual income for the nation. The normal stuff they can fund & build themselves Quote Link to comment Share on other sites More sharing options...
erranta Posted August 16, 2011 Share Posted August 16, 2011 Ha Thats what you think. They win no matter what happens. & have been winning for 30+ years.. do you know why ? I don't study financials deeply so havent a clue. Wild guess is turning oil taps on and off (and living off peak-oil ******** fear speculation talking up the price - whilst no oil producing country has ever declared it's current known reserves) They are doomed - oil revenues being tied to non-top dollar if things don't rapidly change! Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 16, 2011 Share Posted August 16, 2011 The Saudis are now doing the smart thing with their oil money.. investing in infrastructure and industry in Saudi Arabia. With less oil money they would have to procede at a slower pace on that development. Which would cause issues in the country like less good opportunity for young Saudis. Spot on. Youth unemployment is a major concern for the Saudi Government. The situation is not helped by the education system but hey ho.... Quote Link to comment Share on other sites More sharing options...
winkie Posted August 16, 2011 Share Posted August 16, 2011 ...never been a good idea to have all your eggs in one barrel. Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 16, 2011 Share Posted August 16, 2011 ...never been a good idea to have all your eggs in one barrel. Thats why the Saudi's are now developing phosphate, bauxite, iron, and gold mines. Petrochemicals, renewables (solar and wind), possibly nuclear, and sour gas. Quote Link to comment Share on other sites More sharing options...
Kurt Barlow Posted August 16, 2011 Share Posted August 16, 2011 @ $100 Saudi yearly production is worth $365B UK GDP > $2000B UK exports $400B Slightly misleading as oil, whilst being the biggest component is not the only part of the Saudi Economy At present; GDP $443 bn Exports - $235bn Imports - $99bn Balance of trade surplus of $136bn...... Quote Link to comment Share on other sites More sharing options...
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