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Tuesday, 23 February 2016

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With so much of the fracking infrastructure in place, all that is needed is a higher price and then wait. Fracking can put a roof on excess price. Hopefully this can harm Iran and Russia and put the Islamist backing Saudis in peril.

Quite so, Whiters, and God bless America - again!

This Saudi subsidy suits us just fine. We're off out in the car tomorrow on a 160 mile jaunt and all that lovely CO2 should help with global warming too. A win win.

Make the most of it, Uncle, it ain't gonna last!

What has always surprised me is when the British drew the lines in the sand we created Saudi Arabia. We could have kept it and ridden ourselves and the world of those fanatics.
However we are where we are. The Saudis buy our weapons with the money we give them for oil so it is a workable arrangement.

Can't find the reference but the quote about the Saudis I remember.

"Their grandfathers were born in tents and their grandchildren will also be born in tents"

Cannot come soon enough.

I wish the Saudis and Turks would do less of the Jaw-Jaw and a bit more War-War.

We sold them all that kit and they can't even manage a few of their opposition Hairies in Yemen, let alone a boots on the ground invasion of Syria.

Leave your camels alone for a goddamn minute and press the red button on one of those bits of BAe kit sitting on the shelf, please.

The quieter it gets in Syria, the noisier it gets in Western capitals.

SoD

The Saudis decided some time ago that they were going to crush the American shale oil industry which threatened to cut their own petro-dollar industry off at the knees.

They didn't, you're way off on this. And A-EP on the oil industry is sketchy at best. See here. On this issue - the US shale industry being resilient - he is right, but he's one of many saying just the same thing.

Tim, I'm not here to defend A E-P but the self-evident fact is that the Saudis are gushing forth their oil and thus sending the price into a nose dive. So the question remains - why? I will rely on your oil company expertise for an answer.

Tim, you're saying the Saudis didn't decide to eviscerate the US shale oil industry and thereby preserve and extend their market share?

If so, have you written something, or found something that shows otherwise?

SoD

So the question remains - why?

This post - not written by me - answers it as well as any I've found.

Thanks, Tim, a fascinating report according to which it is, mainly, the combination of a Chinese demand slump allied with relatively cheap fracked oil and gas which has driven down the price, plus, the fact that the Saudis no longer trust their OPEC 'partners' and so refuse to cut production.

It sounds convincing because, as the writer indicates, even the Saudis must realise that even if they bankrupt every shale producer there will always be 'Trump-like' operators standing by ready to pick up the pieces once demand rises. And the fact that in the meantime Russia and Iran are likely to suffer the most provides the Saudis with some comfort in this, their hour of need!

Always useful to have 'Big Oil' on tap here at D&N to provide some expertise!

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