Oil prices to rise. Saudi Arabia blinks , will reduce production

[IDL]

Lol, this post isn't compatible with 14.

If you have a question, ask it.

 

[UpaLoompa]

If you have a question, ask it.

No question, you're just continuing to demonstrate a lack of logical consistency.

 

[IDL]

No question, you're just continuing to demonstrate a lack of logical consistency.

Rather than exploring the underlying reasoning of something, you attack whatever is on the surface. This mentality is a dead end.

 

[UpaLoompa]

Rather than exploring the underlying reasoning of something, you attack whatever is on the surface. This mentality is a dead end.

In one post you talk about this is an example of long-term economic warfare. In another post you talk about how the players in this particular example are actually colluding.

GTFO.

 

[IDL]

In one post you talk about this is an example of long-term economic warfare. In another post you talk about how the players in this particular example are actually colluding.

Yes, so? Not everything will make sense in the sort of 2D nation-state vs. nation-state model of understanding geo-politics.

The US is ruled by a small number of people who work internationally. They are not 'American patriots'. They have no problem working with whatever factions around the world to further their own interests.

Economic warfare is not simply 'nation state vs. nation state'.

 

[VulcanNervPinch]

We need to go solar and electric and rid ourselves of these oil peasants. Time to do away with oil

Absolutely true.


(And btw, Jimmy Carter had that same outlook 40 years ago. Then senile, old Grandpa Ronnie came along and decided conservation and renewables was the "wrong approach".)

http://usgovinfo.about.com/od/thepresidentandcabinet/tp/History-of-White-House-Solar-Panels.htm

 

[MicroBrew]

They also announced they would wage was against ISIS, how did that went?

Saudis may have initiated the downward spiral but they certainly dont have the power to stop it.

They think they have the power to influence Oil price. Myabee they do to and extent or maybee not.

When we are talking about what can be done and the difficulty in doing it : waging war against ISIS and manipulating Oil prices are in different leagues . To try and increase the price of crude all they need to do is pump less. To wage war on ISIS requires a hellva lot more effort and more importantly actual lives.

 

[Rod1]

They think they have the power to influence Oil price. Myabee they do to and extent or maybee not.

When we are talking about what can be done and the difficulty in doing it : waging war against ISIS and manipulating Oil prices are in different leagues . To try and increase the price of crude all they need to do is pump less. To wage war on ISIS requires a hellva lot more effort and more importantly actual lives.

Saudi Arabia accounts for around 13% of crude oil production.

I think waging war against ISIS is more realistic than them controlling the world oil prices at whim.

 

[MadSquabbles500]

So the only reason why the House of Saud starting pumping out too much gas to depress the prices was to hurt the town of Williston? I just want to get that straight.

 

[ehtheist]

The cheap oil is short term gain while our domestic production has existential benefits / long term advantages. It's like a large retailer slashing prices to drive out small retailers then once all the smaller retailers are bankrupt the large retailer raises prices back up and the public are left with little or no competition.

Just to be clear I am absolutely not taking sides in this. Personally, my husband works in oil and the guy saying “the only ones benefitting from this are the oil companies!” is a dumbass. Whole economies run on oil and the spread-out effect from all that money being earned by workers keeps all sorts of others employed and prospering, and you only realize it when the oil money dries up.

That being said… Existential benefits? Was that a wrong choice of a word? If not, what kind of benefits are you referring to?

 

[MicroBrew]

Just to be clear I am absolutely not taking sides in this. Personally, my husband works in oil and the guy saying “the only ones benefitting from this are the oil companies!” is a dumbass. Whole economies run on oil and the spread-out effect from all that money being earned by workers keeps all sorts of others employed and prospering, and you only realize it when the oil money dries up.

That being said… Existential benefits? Was that a wrong choice of a word? If not, what kind of benefits are you referring to?

The existential refers to:
If we don't have to rely on the Arabs for oil , they have far less power over us.
Domestic production = better for our secuirty and freer hand in foreign policy.

 

[Rod1]

Just to be clear I am absolutely not taking sides in this. Personally, my husband works in oil and the guy saying “the only ones benefitting from this are the oil companies!” is a dumbass. Whole economies run on oil and the spread-out effect from all that money being earned by workers keeps all sorts of others employed and prospering, and you only realize it when the oil money dries up.

That being said… Existential benefits? Was that a wrong choice of a word? If not, what kind of benefits are you referring to?

And the spread out of money from people having more money on their pockets due to them paying less for gas and utilities doesnt benefits the economy?

The main issue with the oil glut is that it hurts the financial markets (oil companies not being able to pay debt) and the risk of deflation.

For the most part oil gluts raise consumption which is the number 1 driver of the American economy. Its not a coincidence that the Dollar keeps raising in value and that consumption is reaching record heights.

Im sorry about your husband but im talking about the general state of the economy.

 

[Pelosi2020]

So the only reason why the House of Saud starting pumping out too much gas to depress the prices was to hurt the town of Williston? I just want to get that straight.

Several years ago there was a huge spike in oil price. It seems like that spurred many nations around the world to explore-drill-frack for oil in their own countries. It also seems like SA's response has been to depress oil prices to make that unprofitable & sure, there are a lot of other factors at play but IMHO the damage has already been done.

When SA takes their foot off the gas, pun intended, the rest of the world is going full bore again. The oil industry in the US has massive resources in wait. Actually it is a good thing as it should help counter any future spikes. I don't think SA is all too happy about this situation though.

 

[Cid]

Killed the local fracking industry. What a shame.

 

[Deleted member 429137]

Lol, this post isn't compatible with 14.

don't be a fucking globalist

 

[lifelessheap]

Yes, economic warfare by selling you extremely cheap, high quality oil that benefits everyone except the oil companies.

Let me guess, you think climate change is fake too?

The climate changes? The climate has always changed and always will. What a fucking joke.

Oh no, humans made one particular particle in the air go from 4/10,000 to 5/10,000


ERMAGOD

 

[MicroBrew]

Saudi Arabia accounts for around 13% of crude oil production.

I think waging war against ISIS is more realistic than them controlling the world oil prices at whim.

Not control all by themselves but have the biggest impact on OPEC policy and a major impact on the price of crude.

 

[Rod1]

The climate changes? The climate has always changed and always will. What a fucking joke.

Oh no, humans made one particular particle in the air go from 4/10,000 to 5/10,000


ERMAGOD

LOL what an idiot.

 

[Rod1]

Not control all by themselves but have the biggest impact on OPEC policy and a major impact on the price of crude.

They still need to meet their budget balances and so has all OPEC members, its not that easy.

 

[MicroBrew]

They still need to meet their budget balances and so has all OPEC members, its not that easy.

And news has been saying how they are burning through their reserves . They made a decision, that they need to destroy North American fracking even though it is also hurting them because their calculation is that in the long-term it is in their interests.