SAUDI ARABIA RUNNING OUT OF OIL

Discussion in 'Wall St. News' started by freewilly, Jan 12, 2015.

  1. SAUDI ARABIA RUNNING OUT OF OIL
    Interesting for the past 3 or 4 years the financial media has been reporting Saudis Arabia was running out of oil but now they have plenty of oil. Here is a typical example:
    SAUDI ARABIA RUNNING OUT OF OIL
    By Tap Vann on June 11, 2011

    A OPEC report confirms that Saudi Arabia is running out of oil.

    A major Saudi Arabia oil company has set off alarms to warn that oil in the country will be depleted by 2013 based on current worldwide consumption.

    The report, published in the magazine Al Mashka says that the increase in worldwide consumption (particularly by China) is one of the main challenges facing the country, mainly because oil accounts for 80% of national income.

    Abdel Salem al-Barani, head of the Saudi Oil Company company also warned of the consequences for citizens of the world to ignore the calls to save electricity, and has advised that they depend more on solar energy and windmills.

    Wikileaks documents have indicated that Saudi Arabia’s reserves have been wildly overestimated.

    The cables, released by WikiLeaks, urge Washington to take seriously a warning from a senior Saudi government oil executive that the kingdom’s crude oil reserves may have been overstated by as much as 1,000 barrels – nearly 70%.

    The revelation comes as the oil price has soared in recent weeks to more than $100 a barrel on global demand and tensions in the Middle East. Many analysts expect that the Saudis and their OPEC cartel partners would pump more oil if rising prices threatened to choke off demand.

    Earlier today, with OPEC refusing, to raise official production rate, Saudi Arabia decided to boost production on its own – which will cause them to run out oil even faster.

    Even though Saudi Arabia is boosting production, they are considering drastically lowering production so that they can make their oil supply last longer. But, either way, the days of wealthy Saudi Arabian princes are coming to an end. Less
     
  2. loyek590

    loyek590

    every now and then, someone from the Royal family talks on cnbc about their investments. They are in in a big way in many NYSE companies and also Europe and especially in Japan. Don't know about China.

    they claim their wells will run at current output for 50 years, and that is good light sweet crude. Break even is about $30 or less.

    But I suppose when they are talking their book, they are on the verge of running dry.
     
  3. TGregg

    TGregg

    It was the end of the world as we know it. . . lol.
     
  4. dbphoenix

    dbphoenix

    Or they can be trying to drive others out of business so that when demand again outweighs supply they won't have to give away what they have left but can instead command a premium.
     
  5. loyek590

    loyek590

    maybe not drive out, but put a hurt on highly leveraged North Dakota. "We can pump at $32, how low can you go?"

    Capitalism at it's finest
     
  6. loyek590

    loyek590

    in otherwords, Do you want to be independent or join the cartel? The cartel can get you $90 plus
     
  7. loyek590

    loyek590

    unionize! Just like Woody Guthrie sang about. We crude producers need to stick together! Otherwise, the consumers will bleed you dry.

    This crude is your crude
    This crude is my crude
    From North Dakota
    To Saudi Arabia

    This crude belongs to you and me

    and don't let the people try to screw you out of it

    They don't know how to look for it, or find it, or drill it, or process it, or make money from it

    All they know is how to burn it

    and they are always bitching it costs too much
     
  8. Visaria

    Visaria

    FYI, Saudi Arabian oil production costs are around $5-$10 per barrel.
     
  9. loyek590

    loyek590

    I guess it depends on how much oil a dollar will buy
     
  10. can't wait for nuclear fusion
     
    #10     Jan 17, 2015