Saudi Arabia may go broke before the US oil industry buckles

[Chris_]

Saudi Arabia may go broke before the US oil industry buckles

If the oil futures market is correct, Saudi Arabia will start running into trouble within two years. It will be in existential crisis by the end of the decade.

The contract price of US crude oil for delivery in December 2020 is currently $62.05, implying a drastic change in the economic landscape for the Middle East and the petro-rentier states.

The Saudis took a huge gamble last November when they stopped supporting prices and opted instead to flood the market and drive out rivals, boosting their own output to 10.6m barrels a day (b/d) into the teeth of the downturn.

Bank of America says OPEC is now "effectively dissolved". The cartel might as well shut down its offices in Vienna to save money.

Telegraph

This is a very interesting article and worth checking out.

[obumazombie]

I was hoping the day would come when OPEC rued.
Evidently today is the day.
It couldn't happen to a more greedy organization.

[Lacarnut]

Liberal US politicians want to thwart the production of oil (fracking and Keystone Pipeline) in this country. Most of our oil comes from Canada and south of the border. We only import 15% from the M.E. We could ramp up production in this country and those billions of dollars we send to them would stay in this country. Ditch the EPA and Interior Departments and it could be easily accomplished leaving them with a glut on their hands.   

[docstew]

Liberal US politicians want to thwart the production of oil (fracking and Keystone Pipeline) in this country. Most of our oil comes from Canada and south of the border. We only import 15% from the M.E. We could ramp up production in this country and those billions of dollars we send to them would stay in this country. Ditch the EPA and Interior Departments and it could be easily accomplished leaving them with a glut on their hands.   

In this case, couldn't we use OIL as a strategic weapon? Drill our own, drive the price down, and bankrupt these countries faster. If you'll notice, Iran and Venezuela are lower on the list than SA, meaning they need high oil prices too.

[Lacarnut]

In this case, couldn't we use OIL as a strategic weapon? Drill our own, drive the price down, and bankrupt these countries faster. If you'll notice, Iran and Venezuela are lower on the list than SA, meaning they need high oil prices too.

We could be self dependent in 5 years and not purchase a drop from any country. For the most part, oil is being drilled on private property. Liberals and Env. nuts do not want drilling on federal land. The government owns most of the land west of the MS river. Open those up and we could be a net exporter of crude.

That will never happen because the government wants high energy prices so that they can promote wind, solar and electric power.