Saudi Arabia may go broke before the US oil industry buckles

[AdamSmith]

The upside (for us) of shale fracking.

Saudi Arabia may go broke before the US oil industry buckles

It is too late for OPEC to stop the shale revolution. The cartel faces the prospect of surging US output whenever oil prices rise

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...

http://www.telegraph.co.uk/finance/oilprices/11768136/Saudi-Arabia-may-go-broke-before-the-US-oil-industry-buckles.html

[RA1]

Talk about your one trick pony. The economy there is entirely built upon oil and the economy is entirely directed by politics. Of course, because I am a citizen of a "glass house" economy, at the very least interfered with by politics, I should be careful about hurling stones. Does one hurl stones if one drinks too much "Kool-Aid"?

Best regards,

RA1

[AdamSmith]

Surely the End Times are upon us. Upon OPEC at any rate?

OPEC just kicked oil into the $30s

http://www.msn.com/en-us/money/markets/opec-just-kicked-oil-into-the-dollar30s/ar-BBlEuHr?ocid=wispr

[lookin]

Not so hot for Russia either.

[RA1]

Russia can always go to (stay at) war. Saudi Arabia not so much. OPEC has to hire it done.

Best regards,

RA1

[MsGuy]

I'm pretty sure the Saudis deployed an armored brigade to Yemen last week complete with French MBTs, Russian APCs and American armored trucks but manned by Saudis and some Gulf allies.

Supposedly they're there on a training mission to the Yemen army but by sheer happen stance they landed in a port controlled by Houthi militia, blasted them out and then rolled north into a military air base (also occupied by Houthi), which base apparently was deemed to be essential to their training mission.

Also the brigade appears to be receiving militia support from local Muslim Brotherhood and al-Qaeda outfits, both of whom the Saudis regard as deadly enemies at home but who also happen to dislike Iran (who dislikes Saudis and favors Houthis).

In the Mid-East. you can't keep track of the sides, even with a scorecard.

[RA1]

I agree there is no hope even with a score card. But, these are amateurs fighting against amateurs. If the big bad wolf happened along (or the Soviet bear or the US eagle) they would run like rats deserting a sinking ship. Don't misunderstand. I want someone other than US to fight around the world and the middle east is a good a place as any.

Some don't seem to get it. Sell arms and let them fight and we all win.

Best regards,

RA1

[lookin]

Sell arms and let them fight and we all win.

Well, not everybody.

[RA1]

Are they part of us or them? I don't wish to kill anyone or see them hurt but, if they are going to fight regardless, why should we continue to stick our nose in? We are obviously not taking care of our domestic problems adequately and doing almost nothing positive in foreign problems or, in some cases, actually doing more harm than good. Sorry to say.

Best regards,

RA1

[tassojunior]

Saudi oil is in the oppressed Shia part of the country.

50% of the US budget goes to military.

We didn't pay for our last two invasions (Iraq and Afganistan) but borrowed money mostly from the Chinese. Several trillion.

China is , or will soon be, the world's leading economic country because they don't do military but invest in infrastructure and loan money to dumb military-obsessed countries.

[RA1]

I suppose the Chinese aircraft carriers, submarines and fighter/bombers are just an illusion? The Chinese are VERY militaristic and pushing their "influence" further every day.

I suppose the Chinese pollution is only imaginary also. They seem to have no regard for air quality, never mind the quality of life for the average Chinese.

Sorry to say all of the above.

Best regards,

RA1