Saudis say OPEC won't cut output at even $20/barrel

[I spent the winter writing songs about getting better]

http://news.yahoo.com/opec-wont-cut-output-even-20-barrel-saudi-103354846.html

The Saudis, as despicable of a regime that they are, are actually a lot more smarter than most countries in this position, they've been putting lots of the oil revenues into investing into alternative energies, and don't have to worry about crashing into ruin like coal territory is now once oil goes the same way. Most American and Canadian oil businesses can't say the same.

I think environmentalists should be happy at this news though: it'll put the frackers out of business.

[Citizen Hats]

I think environmentalists should be happy at this news though: it'll put the frackers out of business.

Cheaper oil is more oil burned. 

[patrick1]

http://news.yahoo.com/opec-wont-cut-output-even-20-barrel-saudi-103354846.html

The Saudis, as despicable of a regime that they are, are actually a lot more smarter than most countries in this position, they've been putting lots of the oil revenues into investing into alternative energies, and don't have to worry about crashing into ruin like coal territory is now once oil goes the same way. Most American and Canadian oil businesses can't say the same.

I think environmentalists should be happy at this news though: it'll put the frackers out of business.

80% of their budget and 90% of the exports is based on oil, they have half heartedly tried but largely failed to diversify their economy.  Sadly one of their largest growing exports is their backward form of Islam.

[Deus Naturae]

Most American and Canadian oil businesses can't say the same.

That's because they're businesses, whereas Saudi Arabia is a country. If/when oil goes the way of the dodo, Saudi oil companies won't be in great shape either.

[Deus Naturae]

Anyway, I don't really know what the Saudis hope to gain from this long-term. Even if they succeed in driving US shale producers out of business, they will need to keep the price down indefinitely if they want things to stay that way, which would eventually lead to countries like Venezuela leaving OPEC. If they try to revert to their cartel price-jacking ways, wouldn't that just put North American producers back in business? So either OPEC will break up or shale production becomes profitable again and they're back in the same situation they're in now. Just seems like they're trying to delay the inevitable. Buying time perhaps?

[King]

Bluff. They want the North Americans to quit first.

[Indy Texas]

Anyway, I don't really know what the Saudis hope to gain from this long-term. Even if they succeed in driving US shale producers out of business, they will need to keep the price down indefinitely if they want things to stay that way, which would eventually lead to countries like Venezuela leaving OPEC. If they try to revert to their cartel price-jacking ways, wouldn't that just put North American producers back in business? So either OPEC will break up or shale production becomes profitable again and they're back in the same situation they're in now. Just seems like they're trying to delay the inevitable. Buying time perhaps?

1. It puts a lid on alternative energy investment in emerging markets in the short-term. For most developing countries, oil- and natural gas-powered turbine generators are a significant part of their energy mix. They can't afford the large upfront capital investments necessary for nuclear power and they don't necessarily have the geography for things like hydropower or geothermal. And a lot of those countries get the oil for those turbines on favorable terms from oil producers like Saudi Arabia, which gives the Saudis leverage over them. Jordan is a good example of this - like Israel, they have little to no oil reserves, but if you go to Israel, there are solar panels on every building while in Jordan, despite their constant sunshine, there's not a single one.

The Saudis aren't trying to keep the United States and the developed world hooked on oil. They know we have the capital and resources to develop alternatives. They're trying to keep the former Third World in a position of dependence on them for oil.

2. Less money in Russia and Iran's coffers is less money they can give to Bashar Assad. Sure, it's a financial hit for Saudi Arabia too, but that's not terribly different from spending money to go to war against them, except that no one is going to die.

[Ban my account ffs!]

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She's the prettiest... The best damn tapper... The most smartest

Kudos to anyone who gets this reference. (Verin, Im looking at you)

[Simfan34]

I think environmentalists should be happy at this news though: it'll put the frackers out of business.

Hurray for hipster Wahabism, am I right?

[Indy Texas]

I think environmentalists should be happy at this news though: it'll put the frackers out of business.

Hurray for hipster Wahabism, am I right?

They are both fond of scarves and facial hair.

[136or142]

Odd, they had only mentioned $40 a barrel previously.

[memphis]

http://en.wikipedia.org/wiki/Dumping_(pricing_policy)

[Simfan34]

Alwaleed: Oil Will Never See $100 Again

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[t_host1]

Boone Pickens was long for about this time @ $150, ooch. Back mid summer he said the Saudis where pumping a lot of water from their reserves, this and his not so good wind farm development.  humm?
Dollar strength, euro QE adding $0 equity, conquest on the move – the bad kind, with no sheriff in town, all’s good, except for those in the theater of Obama’s last supper.
...aah, speak of the devil , he's coming up on cnbc... see where he's at now

still long, a little..

[ag]

Boone Pickens was long for about this time @ $150, ooch. Back mid summer he said the Saudis where pumping a lot of water from their reserves, this and his not so good wind farm development.  humm?
Dollar strength, euro QE adding $0 equity, conquest on the move – the bad kind, with no sheriff in town, all’s good, except for those in the theater of Obama’s last supper.
...aah, speak of the devil , he's coming up on cnbc... see where he's at now

still long, a little..

I propose, at least, to limit this effluence to a single thread. Would everybody agree?

[t_host1]

Boone Pickens was long for about this time @ $150, ooch. Back mid summer he said the Saudis where pumping a lot of water from their reserves, this and his not so good wind farm development.  humm?
Dollar strength, euro QE adding $0 equity, conquest on the move – the bad kind, with no sheriff in town, all’s good, except for those in the theater of Obama’s last supper.
...aah, speak of the devil , he's coming up on cnbc... see where he's at now

still long, a little..

I propose, at least, to limit this effluence to a single thread. Would everybody agree?

..oh crap

[Antonio the Sixth]

Boone Pickens was long for about this time @ $150, ooch. Back mid summer he said the Saudis where pumping a lot of water from their reserves, this and his not so good wind farm development.  humm?
Dollar strength, euro QE adding $0 equity, conquest on the move – the bad kind, with no sheriff in town, all’s good, except for those in the theater of Obama’s last supper.
...aah, speak of the devil , he's coming up on cnbc... see where he's at now

still long, a little..

I propose, at least, to limit this effluence to a single thread. Would everybody agree?

I hardly see any of his posts outside of this thread anyway.