Long term OIL

[jaysabi]

The price of oil could recover by 2017 but never expect for a price we reached during 2012 to 2014 but the decisions of OPEC countries would determine the fate of oil and its price.They did not reduce the production when the price was bombing and so is the reason it failed to recover till this time.

During the big fall in prices, OPEC did not reach an agreement on cutting production because it would benefit American shale oil producers. At that point, Saudi Arabia wanted to focus on market share. Things have changed now and OPEC has agreed to restrict production. Whether members will stick to the plan is a different question altogether.

They can agree in principle to "cut" production, even nominally, but effecting cuts is another thing entirely. No one monitors OPEC production except the countries themselves, and they self-report their production. And in the words of the Saudi oil minister, they tend to cheat.

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[Sithara007]

There may be a lot of factors at play

I think that with the current price of crude oil over 50 dollars per barrel the Saudis should be more than happy. Yes, I know that their budget is balanced at around 90 dollars, but it is not the price of oil which seems to be playing the most important role in this game of thrones. My guess is that Trump won't be very friendly toward them up to a point of withdrawing military bases from Saudi Arabia. And that would mean the end of the royal family eventually given how much they are hated in the Islamic world (and elsewhere, for that matter)

How can you be sure that the prices of $50 per barrel are going to stay? Even if the prices stay at that level, I am afraid that the Saudis will go bankrupt soon. The war in Yemen is draining the reserves at an alarming pace.

[SmartIphone]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

[criptix]

There may be a lot of factors at play

I think that with the current price of crude oil over 50 dollars per barrel the Saudis should be more than happy. Yes, I know that their budget is balanced at around 90 dollars, but it is not the price of oil which seems to be playing the most important role in this game of thrones. My guess is that Trump won't be very friendly toward them up to a point of withdrawing military bases from Saudi Arabia. And that would mean the end of the royal family eventually given how much they are hated in the Islamic world (and elsewhere, for that matter)

How can you be sure that the prices of $50 per barrel are going to stay? Even if the prices stay at that level, I am afraid that the Saudis will go bankrupt soon. The war in Yemen is draining the reserves at an alarming pace.

Production cost of oil in the middle east is between 0.5$ to 10$.

The problem of the sauds is that they just spend too much money but one reason is that they try to transition away from an oil only economy.

As long as they reduce their spending they have no problems.

[deisik]

There may be a lot of factors at play

I think that with the current price of crude oil over 50 dollars per barrel the Saudis should be more than happy. Yes, I know that their budget is balanced at around 90 dollars, but it is not the price of oil which seems to be playing the most important role in this game of thrones. My guess is that Trump won't be very friendly toward them up to a point of withdrawing military bases from Saudi Arabia. And that would mean the end of the royal family eventually given how much they are hated in the Islamic world (and elsewhere, for that matter)

How can you be sure that the prices of $50 per barrel are going to stay? Even if the prices stay at that level, I am afraid that the Saudis will go bankrupt soon. The war in Yemen is draining the reserves at an alarming pace.

I'm not sure of that, of course

Regarding Saudis going belly up, this won't happen just because of low oil prices. Do you know what their current financial position amounts to and how much they really spend on the war in Yemen? I heard they gave 1B dollars to Egypt so that it could pay for the two French helicopter carriers which had been made for Russia. If things get serious in financial aspect, they will just cut expenses (what they have been already doing anyway). In this way, it may take long time to drain the reserves unless they are drained faster for other reasons (which is what I'm alluding to)

Pretty shitty that google doesnt has the answer to everything right?

And learn basic grammar as well while you are looking for a dictionary (as I told you before)

[PanZerrr]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

Yes, you are right now very fashionable to produce electric vehicles. But I am sure that they will never be produced in large quantities. Large oil tycoons simply unacceptable

[criptix]

There may be a lot of factors at play

I think that with the current price of crude oil over 50 dollars per barrel the Saudis should be more than happy. Yes, I know that their budget is balanced at around 90 dollars, but it is not the price of oil which seems to be playing the most important role in this game of thrones. My guess is that Trump won't be very friendly toward them up to a point of withdrawing military bases from Saudi Arabia. And that would mean the end of the royal family eventually given how much they are hated in the Islamic world (and elsewhere, for that matter)

How can you be sure that the prices of $50 per barrel are going to stay? Even if the prices stay at that level, I am afraid that the Saudis will go bankrupt soon. The war in Yemen is draining the reserves at an alarming pace.

I'm not sure of that, of course

Regarding Saudis going belly up, this won't happen just because of low oil prices. Do you know what their current financial position amounts to and how much they really spend on the war in Yemen? I heard they gave 1B dollars to Egypt so that it could pay for the two French helicopter carriers which had been made for Russia. If things get serious in financial aspect, they will just cut expenses (what they have been already doing anyway). In this way, it may take long time to drain the reserves unless they are drained faster for other reasons (which is what I'm alluding to)

Pretty shitty that google doesnt has the answer to everything right?

And learn basic grammar as well while you are looking for a dictionary (as I told you before)

*have

My excuse for the bad grammar is that english is my 3rd language.

What is your excuse for being retarded and spreading bullshit most of the time? 

 

[Sithara007]

There may be a lot of factors at play

I think that with the current price of crude oil over 50 dollars per barrel the Saudis should be more than happy. Yes, I know that their budget is balanced at around 90 dollars, but it is not the price of oil which seems to be playing the most important role in this game of thrones. My guess is that Trump won't be very friendly toward them up to a point of withdrawing military bases from Saudi Arabia. And that would mean the end of the royal family eventually given how much they are hated in the Islamic world (and elsewhere, for that matter)

How can you be sure that the prices of $50 per barrel are going to stay? Even if the prices stay at that level, I am afraid that the Saudis will go bankrupt soon. The war in Yemen is draining the reserves at an alarming pace.

I'm not sure of that, of course

Regarding Saudis going belly up, this won't happen just because of low oil prices. Do you know what their current financial position amounts to and how much they really spend on the war in Yemen? I heard they gave 1B dollars to Egypt so that it could pay for the two French helicopter carriers which had been made for Russia. If things get serious in financial aspect, they will just cut expenses (what they have been already doing anyway). In this way, it may take long time to drain the reserves unless they are drained faster for other reasons (which is what I'm alluding to)

No one knows how much the Saudis are spending on the war in Yemen. All that information is classified. But you are right when saying that it will take a long time to drain the reserves. The Saudi foreign assets (as of November 2016) stands at $530 billion. The budget deficit for the year 2015-16 was $98 billion. If they are able to cut back on the spending, then they should be able to carry on for another 10 years. Also, it seems that the crude prices are stabilizing at $55-$60 levels.

[deisik]

There may be a lot of factors at play

I think that with the current price of crude oil over 50 dollars per barrel the Saudis should be more than happy. Yes, I know that their budget is balanced at around 90 dollars, but it is not the price of oil which seems to be playing the most important role in this game of thrones. My guess is that Trump won't be very friendly toward them up to a point of withdrawing military bases from Saudi Arabia. And that would mean the end of the royal family eventually given how much they are hated in the Islamic world (and elsewhere, for that matter)

How can you be sure that the prices of $50 per barrel are going to stay? Even if the prices stay at that level, I am afraid that the Saudis will go bankrupt soon. The war in Yemen is draining the reserves at an alarming pace.

I'm not sure of that, of course

Regarding Saudis going belly up, this won't happen just because of low oil prices. Do you know what their current financial position amounts to and how much they really spend on the war in Yemen? I heard they gave 1B dollars to Egypt so that it could pay for the two French helicopter carriers which had been made for Russia. If things get serious in financial aspect, they will just cut expenses (what they have been already doing anyway). In this way, it may take long time to drain the reserves unless they are drained faster for other reasons (which is what I'm alluding to)

No one knows how much the Saudis are spending on the war in Yemen. All that information is classified. But you are right when saying that it will take a long time to drain the reserves. The Saudi foreign assets (as of November 2016) stands at $530 billion. The budget deficit for the year 2015-16 was $98 billion. If they are able to cut back on the spending, then they should be able to carry on for another 10 years. Also, it seems that the crude prices are stabilizing at $55-$60 levels.

That's exactly what I'm thinking myself

If I'm not mistaken, over a year ago their wealth fund totaled about 650-660B dollars in US Treasuries, so it seems that it could last indefinitely long given current prices of crude oil and their budget cuts. But we should not forget that the US courts allowed the American citizens to sue Saudi Arabia directly for their alleged involvement in the 911 attacks. I don't know what's come out of the lawsuit of a woman who had lost her husband in these attacks (everyone is welcome to chime in on this), but such funds can be easily expropriated by the US government at any moment, at least as long as they are held in the US

My excuse for the bad grammar is that english is my 3rd language.

What is your excuse for being retarded and spreading bullshit most of the time?

If you can't get out a coherent sentence yourself, how can you possibly judge what other people are talking about?

[yayayo]

No one knows how much the Saudis are spending on the war in Yemen. All that information is classified. But you are right when saying that it will take a long time to drain the reserves. The Saudi foreign assets (as of November 2016) stands at $530 billion. The budget deficit for the year 2015-16 was $98 billion. If they are able to cut back on the spending, then they should be able to carry on for another 10 years. Also, it seems that the crude prices are stabilizing at $55-$60 levels.

It depends on what kind of assets they are holding. If it's US treasuries they might be exposed to significant valuation risk, because of interest rates may be going up (and valuation of existing bonds down).

The Saudis are not accustomed to being thrifty. So it will not be an easy task for them to quickly cut back on spending. Especially if you consider the domestic situation, with many people unsatisfied with the dictatorial regime. Reducing social benefits might quickly trigger civil unrest...

ya.ya.yo!

[criptix]

There may be a lot of factors at play

I think that with the current price of crude oil over 50 dollars per barrel the Saudis should be more than happy. Yes, I know that their budget is balanced at around 90 dollars, but it is not the price of oil which seems to be playing the most important role in this game of thrones. My guess is that Trump won't be very friendly toward them up to a point of withdrawing military bases from Saudi Arabia. And that would mean the end of the royal family eventually given how much they are hated in the Islamic world (and elsewhere, for that matter)

How can you be sure that the prices of $50 per barrel are going to stay? Even if the prices stay at that level, I am afraid that the Saudis will go bankrupt soon. The war in Yemen is draining the reserves at an alarming pace.

I'm not sure of that, of course

Regarding Saudis going belly up, this won't happen just because of low oil prices. Do you know what their current financial position amounts to and how much they really spend on the war in Yemen? I heard they gave 1B dollars to Egypt so that it could pay for the two French helicopter carriers which had been made for Russia. If things get serious in financial aspect, they will just cut expenses (what they have been already doing anyway). In this way, it may take long time to drain the reserves unless they are drained faster for other reasons (which is what I'm alluding to)

No one knows how much the Saudis are spending on the war in Yemen. All that information is classified. But you are right when saying that it will take a long time to drain the reserves. The Saudi foreign assets (as of November 2016) stands at $530 billion. The budget deficit for the year 2015-16 was $98 billion. If they are able to cut back on the spending, then they should be able to carry on for another 10 years. Also, it seems that the crude prices are stabilizing at $55-$60 levels.

That's exactly what I'm thinking myself

If I'm not mistaken, over a year ago their wealth fund totaled about 650-660B dollars in US Treasuries, so it seems that it could last indefinitely long given current prices of crude oil and their budget cuts. But we should not forget that the US courts allowed the American citizens to sue Saudi Arabia directly for their alleged involvement in the 911 attacks. I don't know what's come out of the lawsuit of a woman who had lost her husband in these attacks (everyone is welcome to chime in on this), but such funds can be easily expropriated by the US government at any moment, at least as long as they are held in the US

My excuse for the bad grammar is that english is my 3rd language.

What is your excuse for being retarded and spreading bullshit most of the time?

If you can't get out a coherent sentence yourself, how can you possibly judge what other people are talking about?

Everyone else can read your bullshit too.
Why do you think the only people talking with you are either:
1. Idiots
2. Sig spammers
3. Calling you a retard

And the only defense is calling me out on writing "has" instead of "have" when english is my 3rd language - you are really hilarious.


Saudi budget Balaced at 90$; bankrupt soon? Or rather in some decades?
You and bryant/sithara are one of the biggest suckers on this board.

[nemgun]

This discussion started well, and now you are killing each other ? comme on, calm down, the oil price won't go higher because of your arguments.

And please, stop speculating about oil producing countries, they all different, and most of them have huge investments in europe and USA, they won't fall, they won't bankrupt, they will just spend less.

[Sithara007]

No one knows how much the Saudis are spending on the war in Yemen. All that information is classified. But you are right when saying that it will take a long time to drain the reserves. The Saudi foreign assets (as of November 2016) stands at $530 billion. The budget deficit for the year 2015-16 was $98 billion. If they are able to cut back on the spending, then they should be able to carry on for another 10 years. Also, it seems that the crude prices are stabilizing at $55-$60 levels.

It depends on what kind of assets they are holding. If it's US treasuries they might be exposed to significant valuation risk, because of interest rates may be going up (and valuation of existing bonds down).

The Saudis are not accustomed to being thrifty. So it will not be an easy task for them to quickly cut back on spending. Especially if you consider the domestic situation, with many people unsatisfied with the dictatorial regime. Reducing social benefits might quickly trigger civil unrest...

ya.ya.yo!

I believe that a majority of their assets are in the form of equities in the American and other Western stock markets. The next biggest share goes to US treasury bonds ($116.8 billion in March 2016).

But all this discussion will be obsolete as soon as they list the Aramco IPO. According to some sources, they are selling as much as 49% of Aramco (over a period of several years), which may be worth close to $1,000 billion.

http://www.business-standard.com/article/international/saudi-arabia-planning-to-sell-49-of-aramco-says-report-116122400692_1.html

[deisik]

No one knows how much the Saudis are spending on the war in Yemen. All that information is classified. But you are right when saying that it will take a long time to drain the reserves. The Saudi foreign assets (as of November 2016) stands at $530 billion. The budget deficit for the year 2015-16 was $98 billion. If they are able to cut back on the spending, then they should be able to carry on for another 10 years. Also, it seems that the crude prices are stabilizing at $55-$60 levels.

It depends on what kind of assets they are holding. If it's US treasuries they might be exposed to significant valuation risk, because of interest rates may be going up (and valuation of existing bonds down).

The Saudis are not accustomed to being thrifty. So it will not be an easy task for them to quickly cut back on spending. Especially if you consider the domestic situation, with many people unsatisfied with the dictatorial regime. Reducing social benefits might quickly trigger civil unrest...

ya.ya.yo!

I believe that a majority of their assets are in the form of equities in the American and other Western stock markets. The next biggest share goes to US treasury bonds ($116.8 billion in March 2016).

But all this discussion will be obsolete as soon as they list the Aramco IPO. According to some sources, they are selling as much as 49% of Aramco (over a period of several years), which may be worth close to $1,000 billion.

http://www.business-standard.com/article/international/saudi-arabia-planning-to-sell-49-of-aramco-says-report-116122400692_1.html

Wouldn't that make Aramco the most valuable company in the world?

According to this site, as of 2015 the largest company in the world by market value was Apple valued at 724B dollars with Exxon Mobil (another oil company), which is second, having less than half of that value (only 356B dollars). On the other hand, though, I'm heavily inclined to think that much of Apple's market value (just like other such companies in the list like Microsoft or Google) is pure speculation (let alone Buffett's Berkshire Hathaway which is third in the list and only marginally cheaper than Exxon Mobil, by the way)

[SmartIphone]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

Yes, you are right now very fashionable to produce electric vehicles. But I am sure that they will never be produced in large quantities. Large oil tycoons simply unacceptable

Everything start small but after a while it becomes popular and people will love it and electric cars are just awesome.
The only bad thing is that the price of them is pretty high and the production of them is worse for the nature than oil cars.

[Zadicar]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

Yes, you are right now very fashionable to produce electric vehicles. But I am sure that they will never be produced in large quantities. Large oil tycoons simply unacceptable

Everything start small but after a while it becomes popular and people will love it and electric cars are just awesome.
The only bad thing is that the price of them is pretty high and the production of them is worse for the nature than oil cars.

Those electric cars that do exist today would be surely expensive since they are just few in number but when the main trend of creating those electric cars then they will surely deplete because the supply would more increase so this means the competition is there already and those prices will go eventually down. Oil industry would be surely affected.Seeing the price of oil as of now its tending to increase gradually after suffering on low price on worldmarket for almost 8-10 months on this year.

[SmartIphone]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

Yes, you are right now very fashionable to produce electric vehicles. But I am sure that they will never be produced in large quantities. Large oil tycoons simply unacceptable

Everything start small but after a while it becomes popular and people will love it and electric cars are just awesome.
The only bad thing is that the price of them is pretty high and the production of them is worse for the nature than oil cars.

Those electric cars that do exist today would be surely expensive since they are just few in number but when the main trend of creating those electric cars then they will surely deplete because the supply would more increase so this means the competition is there already and those prices will go eventually down. Oil industry would be surely affected.Seeing the price of oil as of now its tending to increase gradually after suffering on low price on worldmarket for almost 8-10 months on this year.

It would be better to see the oil price a little more cheaper as it is a bit expensive now.
And the fact that the most popular brand cars have started to produce electric car means that there is a future of this new innovation.

[Zadicar]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

Yes, you are right now very fashionable to produce electric vehicles. But I am sure that they will never be produced in large quantities. Large oil tycoons simply unacceptable

Everything start small but after a while it becomes popular and people will love it and electric cars are just awesome.
The only bad thing is that the price of them is pretty high and the production of them is worse for the nature than oil cars.

Those electric cars that do exist today would be surely expensive since they are just few in number but when the main trend of creating those electric cars then they will surely deplete because the supply would more increase so this means the competition is there already and those prices will go eventually down. Oil industry would be surely affected.Seeing the price of oil as of now its tending to increase gradually after suffering on low price on worldmarket for almost 8-10 months on this year.

It would be better to see the oil price a little more cheaper as it is a bit expensive now.
And the fact that the most popular brand cars have started to produce electric car means that there is a future of this new innovation.

We are really hoping for a cheaper oil because we could make advantages and save up money on it but we cant stop the hike because oil is still on demand not only on cars but on some things on which oil is badly needed.If electric cars would be produce even more then oil consumption would lessen that means price would less too.

[deisik]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

Yes, you are right now very fashionable to produce electric vehicles. But I am sure that they will never be produced in large quantities. Large oil tycoons simply unacceptable

Everything start small but after a while it becomes popular and people will love it and electric cars are just awesome.
The only bad thing is that the price of them is pretty high and the production of them is worse for the nature than oil cars.

This point has been discussed just a few pages back

The conclusion is that purely electric cars are set to remain only highly expensive toys in the hands of superrich and diehard enthusiasts. Lithium from which the batteries are made nowadays is a very limited element in nature. So unless a groundbreaking scientific breakthrough is made that would radically change the field, nothing is going to change in the future. Batteries using other chemical elements (such as plumbum) seem to be too heavy for a typical city car

[SmartIphone]

I have read the news about the oil industry and the car industry and I'm thinking that cars are moving to electric type.
Some popular cities in Europe are not allowing cars with diesel motors to access the city, but only with gasoline or electric so oil future is very problematic.

Yes, you are right now very fashionable to produce electric vehicles. But I am sure that they will never be produced in large quantities. Large oil tycoons simply unacceptable

Everything start small but after a while it becomes popular and people will love it and electric cars are just awesome.
The only bad thing is that the price of them is pretty high and the production of them is worse for the nature than oil cars.

This point has been discussed just a few pages back

The conclusion is that purely electric cars are set to remain only highly expensive toys in the hands of superrich and diehard enthusiasts. Lithium from which the batteries are made nowadays is a very limited element in nature. So unless a groundbreaking scientific breakthrough is made that would radically change the field, nothing is going to change in the future. Batteries using other chemical elements (such as plumbum) seem to be too heavy for a typical city car

I have seen that the Mercedes in their latest electric car these batteries are very light comparing with the batteries that have current cars.
Tesla has many different options to choose the car and as far as I know the base price starts from $35k which is not cheap!