Economy 52,861 Posted May 28, 2015 Share Posted May 28, 2015 http://www.cnbc.com/id/102691084 Saudi arabia is starting tis plans to begin another oil boom. This time in fracking. The Middle East has considerable oil in "carbonite formations" which are relatively similar to shale formations in most ways Saudi arabia is looking at developing their own tight oil in order to increase capacity to their production. ---------------------- Ok so we have a surplus of 3 million barrels a day being produced WW, Iran might produce more if ban lifted, and now Middle East wants to start fracking? In b4 the second oil collapse many a--lysts say is coming brings oil all the way down to $30/barrel Link to post Share on other sites More sharing options...
lego 44,165 Posted May 28, 2015 Share Posted May 28, 2015 Why is fracking such a funny word? FreePalestine Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted May 28, 2015 Share Posted May 28, 2015 Let them .. with the global movement to lower emissions, they will only shoot themselves in the foot.. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 28, 2015 Author Share Posted May 28, 2015 Let them .. with the global movement to lower emissions, they will only shoot themselves in the foot..not really... take a look at this:http://www.cnbc.com/id/102700229"In Saudi Arabia, we recognize that eventually, one of these days, we are not going to need fossil fuels. I don't know when, in 2040, 2050 or thereafter."For that reason, he said, the kingdom planned to become a "global power in solar and wind energy" and could start exporting electricity instead of fossil fuels in coming years." but in the same article they also mentioned for years to come the world will need oil and demand will continue to grow for a while. I think they milking as much profits as possible while they can to pay for future investments. They not as dumb as you think. Link to post Share on other sites More sharing options...
Kabexuela 1,184 Posted May 28, 2015 Share Posted May 28, 2015 Saudi Arabia ha Prism era Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted May 28, 2015 Share Posted May 28, 2015 not really... take a look at this: but in the same article they also mentioned for years to come the world will need oil and demand will continue to grow for a while. I think they milking as much profits as possible while they can to pay for future investments. They not as dumb as you think.Yeah, but one smart Saudi does not a smart country make....or sumthin like dat ...I think they see that their position as the leading influence in the current global oil market is jeopardized by a cooperative Iranian government and the additional production from other countries. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
Bette Davis 12,742 Posted May 28, 2015 Share Posted May 28, 2015 Why don't they try to diversify their economy at all? Cold as ice cream, but still as sweet. Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 28, 2015 Author Share Posted May 28, 2015 Why don't they try to diversify their economy at all? Its worked for them so far. And since they have the cheapest oil to produce, even during oil busts when everyone else is takijg losses, they still make profit that ultra light crude they have, much if it can be profitable even if oil was as low as $10/barrel. And their economy has many thriving sectors. They are only dependant on oil for the export part of the economy but they have quite a thriving domestic economy Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 28, 2015 Author Share Posted May 28, 2015 Yeah, but one smart Saudi does not a smart country make....or sumthin like dat ...I think they see that their position as the leading influence in the current global oil market is jeopardized by a cooperative Iranian government and the additional production from other countries. Oh saudi arabia isnt stupid. They know they have to make other investments. Hence the huge sun farms they building. With long sun hours, makes sense and they aint stupid. They know oil market dynamics have changed with unconventional oil revolution and they know past strategies if OPEC cutting production will no longer work as if they cut production someone else will simply fill in the gap and take market share. Many members wanted to, Saudi Arabia pushed for no cuts in fact they raised production in the last year from 9 million barrels a day to 10 million now. The global oil market is totally saturated. The surplus is now 3 million barrels a day yet they pumping more. They agressively wanna keep their market share! Link to post Share on other sites More sharing options...
Better Day 5,766 Posted May 28, 2015 Share Posted May 28, 2015 Another country ruining it landscape Together You And I! Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 28, 2015 Author Share Posted May 28, 2015 Another country ruining it landscape Their rocks in deserts. How beautiful can they be? Link to post Share on other sites More sharing options...
Luc 4,776 Posted May 28, 2015 Share Posted May 28, 2015 Oh saudi arabia isnt stupid. They know they have to make other investments. Hence the huge sun farms they building. With long sun hours, makes sense and they aint stupid. They know oil market dynamics have changed with unconventional oil revolution and they know past strategies if OPEC cutting production will no longer work as if they cut production someone else will simply fill in the gap and take market share. Many members wanted to, Saudi Arabia pushed for no cuts in fact they raised production in the last year from 9 million barrels a day to 10 million now. The global oil market is totally saturated. The surplus is now 3 million barrels a day yet they pumping more. They agressively wanna keep their market share!Yeah. Saudi Arabia's goal was to kill the US market by making it unprofitable for them.They also see that oil demand is going to decline on the long term and they're trying to get rid of it while it's still somewhat profitable. Link to post Share on other sites More sharing options...
Better Day 5,766 Posted May 28, 2015 Share Posted May 28, 2015 Their rocks in deserts. How beautiful can they be? Wasting this world with chemicals Together You And I! Link to post Share on other sites More sharing options...
Economy 52,861 Posted May 29, 2015 Author Share Posted May 29, 2015 Yeah. Saudi Arabia's goal was to kill the US market by making it unprofitable for them.They also see that oil demand is going to decline on the long term and they're trying to get rid of it while it's still somewhat profitable.its not reallt working tho. US frackers have adapted and become more efficient and innovative to survive in lower prices. Also because the technology has improved and they can extract more oil per drilled well, the unit cost per barrel also drops So while some small inneficient companies may go out of business, $60/barrel oil wont kill shale. At worst production in the US will stay flat or decline slightly But regardless of whether they think oil has a future or not its not even relevant. The point is theres many new reserves around the world and many new players and the Saudis know cutting production wont work to lift prices for long as it did in the past. Someone else will instead just steal their market share Now oil production remains in surplus. The oil increase the last 2 months is purely from speculation from investors. If the surplus continues to build up stock piles, and iran on top of that makes the deal and pumps more oil... oil could crash big time, as low as $40/barrel or less some suggest Link to post Share on other sites More sharing options...
Woolfsmck 2,763 Posted May 29, 2015 Share Posted May 29, 2015 its not reallt working tho. US frackers have adapted and become more efficient and innovative to survive in lower prices. Also because the technology has improved and they can extract more oil per drilled well, the unit cost per barrel also drops... oil could crash big time, as low as $40/barrel or less some suggestAlso, a lot of the infrastructure and equipment is in place to resume drilling in places they haven't started yet. Oil companies are slowing the new well startups and cutting back on hiring. If the need to add more wells happens, the cost of starting them is less. like a cat in a sil, I observe life, moving and still. My words give a clue,look inside to see whats true Link to post Share on other sites More sharing options...
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