by the same token, the largest consumer of anything cannot be distressed with low prices of what they consume! can saudis drink crude for breakfast?!

only that... that nation can, at the same time, sell lots of iphones, aerospace, arms, etc. which it has done very well so far.

similarly, msia will be much much richer if we can do a "shale oil job" on rice, veg, fish n meats, i.e. produce in excess so much so until there is a glut in the world! but... that will not happen as we are only interested to eat, not produce.

you better check your facts on how much actually USA depends on oil . The updated economic data for USA,GDP is mainly contributed by the service sector , around 80% for USA. so like i said, check your facts before spurting around nonsensical information

This post has been edited by backspace66: Mar 27 2015, 08:12 PM

you need to differentiate middle east countries like KSA compared to USA, they almost entirely depends on oil for their economy. Saudi dependency on the industrial sector( mining and extraction included) is almost 70% while us is just below 20%(for industrial sector which also includes manufacturing....)

top 5 countries with most GDP contributed by Oil in term of percentage of total GDP of each country;
1) Iraq
2) Congo
3) Saudi
4) Kuwait
5) Gabon

surprisingly, oil and gas sector only contributes less than 10% of our country GDP. united states just 1%, now you tell me what this 1 % means to US

This post has been edited by backspace66: Mar 27 2015, 08:30 PM

My facts are simply and easy :
If oil contribution to KSA and US's GDP are low, why both of them die die want to flood the market and refuse to reduce production?
Or you are telling me that they want to do charities
US technically already long bankrupt while KSA is just another greedy businessman
So you reply more on telling they are doing charity

do you even read what i just wrote, like i said KSA is fully dependent on oil , but not US, this is based on published economic figures. maybe you can google check it out yourself.

You mean those published rubbish
I read those, it still can't deny the fact that US bankrupt already
Maybe you can show me the fact on why both of them refuse to reduce output, this will help clear the doubts.
But I doubt you able to show that

the only reason OPEC and its cartel is doing this is to suppress the shale fracking and also to maintain its market share which I agree.
However, personally this would not be the long run solution, how long can they do it? 6 years? They are using their own profit/revenue as a bet now.
Also do you know how easy for this well pad in the States to go back online? With a flick on the switch.
I think OPEC should have a smarter plan than this.

What are you talking about? USA do export refine oil. O&G is definitely one of the key sector in their economy. They want a piece of profit as well in the mid stream before exporting.

Btw it already uplift, currently Shell US is allowed to export crude oil, http://www.wsj.com/articles/royal-dutch-sh...-u-s-1421232880

People in Middle East? Come to 1 of those country and you will know how good they are
They are playing poker right now, see who surrender first.
Like oil price low, some are trying to keep them on ship tanker. but then it is risk also, like leaking to sea due to corrosion.
So is like you say, it won't last long.
OPEC knows that they can't lose out their market share to US, but they are not united going against their common enemy, US
So, this is what happen now, people are getting jobless.

Yup, that is exactly the scenarios. See who show hand 1st and who dare to follow.
But I only afraid 1 thing, for middle east ego first, rational second.
Yup saw mega oil tankers all over.
Why do you think US don't export crude oil? the main reason like you say try to be the market share leader some point in the future. no doubt US is smart.
so ya, just get ready ur popcorns.

For ME fellows, they already gain from the past, so they won't worry much.
But then now they are heart sick also, for every barrel sold, they are making much lesser profit.
Now US are keep on importing oil and at the same time exporting shale oil, this is to secure more market share.
And once they secured more market share, they will sell back the oil they imported with much higher price.
Like with average price they got was USD45, if they sell it out at USD200, how much they are making?
That's why some speculate the price will reach USD200 last time. Those speculators are paving the way for this.
But they never expect that KSA never get shaken by this
So, this is it. Now what can really affect the price of oil is war and is started.

This post has been edited by supersound: Mar 27 2015, 10:09 PM

this aspect is interesting.

any idea how much storage is available there - still plenty, almost full...?

saudi is said to be sitting pretty on usd700 billion reserves, surely can last a long fight.

but do they have the space to store for say, another 6 months?

unchartered territory - will anyone just dump anywhere or burn if n when the "overflow" situation arrives?

This post has been edited by AVFAN: Mar 27 2015, 10:46 PM

Hmm, hate to say it but probably true.
However, they definitely need to launch a bigger scale in their offensive campaign. The attack on the tribes in Yemen did not seem any good. Its going back to starting point. Brent crude oil is USD57.69 as of now and showing bearish trend.

In fact Shell and some major O&G operator have this idea beginning of this year and started booking them. This vessels are set to sail around the sea.

S.O.S: http://uk.reuters.com/article/2015/01/08/o...N0UN0UO20150108

I dont think storage of crude is an issue. Building tank farms or hiring tankers can solve it. The main issue is for them to overcome the "demand" i guess.

I think I said it before : Yemen is not situated at strategic location. If Yemen is located like Singapore, today the price will touch USD70

Building a storage tank take 1-2 years.
They will use tanker instead, cheaper but then the question is, how much more they can continue store the oil?

Both are in pain already, just don't want to show.
As now reaching spring in most countries, demand for fuel will be lesser.
So, it will be very fast to see the effect.

So if we do not depend on official published figures, then i guess we have to depend on your wild guess then

allowed to export ultra light oil as more us refineries is already exceeding capacity to refine this. shale oil is not condensate. the fact is still oil and gas make up 1 percent of US gdp. That is based on published figures, not anyone opinion or wild gueses

This post has been edited by backspace66: Mar 28 2015, 07:53 AM

Nope, I'm considering current economy, politics, securities as a whole.
Is not wild guess but logical thinking.
Why they need to publish rubbish? It is for misleading people.
No doubt US can print money, but they still need to clear the debts.
Is like us, 2 years back Jib Gor says we will not breach 52% debt over GDP, then suddenly it is increased to 55%

http://www.forbes.com/sites/christopherhel...-gas-companies/
In response for your query, it is until June only.
Get your red wine, popcorn ready