Saudi Arabia Will Not Stop Pumping To Boost Oil Prices

[Purveyor]

Source: Financial Times

November 8, 2015 7:01 pm
Simeon Kerr, Roula Khalaf and Lionel Barber in Riyadh

Saudi Arabia is determined to stick to its policy of pumping enough oil to protect its global market share, despite the financial pain inflicted on the kingdom’s economy.

Officials have told the Financial Times that the world’s largest exporter will produce enough oil to meet customer demand, indicating that the kingdom is in no mood to change tack ahead of the December 4 meeting in Vienna of the producers’ cartel Opec.

“The only thing to do now is to let the market do its job,” said Khalid al-Falih, chairman of the state-owned Saudi Arabian Oil Company (Saudi Aramco). “There have been no conversations here that say we should cut production now that we’ve seen the pain.”

Saudi Arabia rocked oil markets last November when Opec decided against production cuts, making clear that the kingdom was abandoning its policy of reducing supplies to stabilise the price.

Read more: http://www.ft.com/intl/cms/s/0/b639a458-8600-11e5-9f8c-a8d619fa707c.html#axzz3qwWK8L5V

[cantbeserious]

1. This Only Serves To Accelerate The Impact Of Peak Oil - Deindustrialization Here We Come

eom

[FLPanhandle]

2. The Saudi's will be fine

Nigeria, Russia, and Venezuela are totally fucked.

[uawchild]

4. Canada and the US Shale industry are hurting too -- Saudi Arabia rejoices.

"Hit by cheap oil, Canada's economy falls into recession"
http://www.reuters.com/article/2015/09/01/us-canada-economy-idUSKCN0R13S620150901

"US shale drillers face squeeze from Saudi oil policy"
http://news.yahoo.com/saudi-oil-market-shake-set-squeeze-us-shale-084400880.html

Saudi Arabia wants to "maintain market share", read that as drive as many competitors out of business as possible. The low production costs and huge reserves of the Saudi oil fields allows them to undercut literally everyone else in the world.


King "Slick Sal" Salman of Saudi Arabia

[bluestateguy]

3. Awesome! Cheap gas it is!

nt

[graegoyle]

5. You know what would "solve" this oil price problem?

Alternative energies. Too bad work on it wasn't started fifty years ago when the energy problem was first articulated. U.S. companies and executives could be saying, "Whatever," as they recharge their high tech, electric limousines.

[NobodyHere]

6. Might as well get rid of their oil now then,

before the green revolution has a chance to live up to its potential.

[FLPanhandle]

7. Bad news is cheap oil make Alternative Energy projects less attractive

$100/barrel would really be a boom to Alternative Energy

[graegoyle]

8. You guys are missing what really motivates the corporations:

Money. Profit.

If oil prices are high, the corporations make more money. Right now, they are worried that they can't gouge the world with high gas prices.

"Hey, the demand for gas is outpacing production--never you mind our refineries we just shut down for no reason. Now pay up."

With the Saudis flooding the market, they can't really do that. However, if the U.S--and others--had invested in alternative energies a long time ago, the Saudis would be begging in the streets (figuratively) while the alt-energy fat cats flaunted their high-tech limos.

Oil would be cheap because no one would be buying it.