For the Saudi’s, this is ALL about bankrupting ISIS.
As far as “targeting” goes, 18% of all High-Yield Bands held by U.S. Banks are in Oil companies/Oil Exploration. Besides, government, it has been the ONLY US Growth Industry in the Obamunist Era.
If that 18% unwinds, we are, yet again, going to get screwed, while the banks are made whole.
Gas was about $2.70 yesterday here in Northern Ohio. And Cleveland used to have the Sohio refinery!
the bottom line is that the Saudi’s need the money no matter what the price. Their hold on power there is tenuous at best even when oil is $120/bbl. To furlough people to cut production hurts them, it’s idle hands are the devil’s workshop and Allah is the devil, a short trip.
The Saudis aren’t doing any of this to help us, but it helps us just the same. Now the key issue is: How long will prices stay low?
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Saudi ARAMCO, one of the largest petroleum companies on the planet: do you know what ARAMCO stands for? The ARABIAN-AMERICAN OIL COMPANY. Yes, hard as it may seem for Americans to believe, the Saudis are our friends. ARAMCO was started in the late 1920's by Texas oilmen.
Americans have lived and worked over there since then and are still there and will be there a long time.
We even had men-of-the-cloth over there, a priest, minister (for all Protestant denominations) and a vicar for a once-a-month Anglican service since there were only six Anglicans on camp.
Christians men-of-the-cloth are called "special teachers" since men-of-the-cloth are not allowed in the Kingdom.
They also hire American Jews for work over there. They had one for WOMEN who needed X-rays and P.T. She was delighted to be there because she made a ton of money...and she was AMERICAN. She cleaned up and left after a few years.
She was, of course, a member of the "people of the Book"--that is, the Bible: Christians, Jews and Muslims. The Saudies NEVER hire Hindus, Zoroastrians, Sikhs, Farsis, Bahá'ís, Mormons, Buddhists, Taoists/Confucianists, Jainists, Shinto and other non-people of the Book.
There have been TENS OF THOUSANDS of Americans who live, work, lived, worked and will live, will work in Saudi Arabia as long as their petroleum lasts.
It is ESTIMATED that the Saudis have another 200 years of petroleum and natural gas.
And YES, they are doing this to help the U.S.A. because we are one of their BIGGEST customers and oldest friends.
Those first petroleum contracts, made in the 1920's, were made with a HANDSHAKE...since 99% of the Saudis were illiterate.
The Saudi king BOUGHT BACK all the petroleum/natual gas rights from ARAMCO way back in 1982. I can'T IMAGINE what he paid for them.
Back in the early 80's, after the King PERSONALLY bought the petroleum and natural gas rights, he was raking in ONE BILLIONS DOLLAR$ every two and a half days.
Gadzooks.
Yes, my husband was one of the ARMY of engineers who worked there. He was a mechanical engineer and worked for a gas company here...then got a job there. AND, everyone knows that mechanical engineers can do any/everything--pumps, engines, machines, everything that makes everything run.
We made a s***pile of money over there.
WE became gente libre with all that "awl bidness"$$. That last part was "Texasese," which I have to brush up on since I'm "fixin'" to go the Texas for Christmas.
I doubt it will last more than a year or so, but while it does, it’s VERY, VERY nice to get cheaper fuel bills.
Fuel oil, propane, and gasoline still cost a lot more than they did before Obama lied his way into the White Hut.
Too bad they all can’t lose.
Unfortunately, the only thing propping up employment and the economy in this country is the energy boom. Be ready... it’s gonna hurt and they will blame President Cruz in 2017.
Great article with lots of good photos. Peters lays out the winners and losers as the Saudi pump oil all out
tcrlaf -- The Islamic State was created by SAudi Arabia and they still fund it, keeping it as their dagger against Shias
starboard -- the Saudis make no real investment -- they just buy off unrest with money
Actually its more a war, at the moment, not with major produces that can sustain a price slump for awhile, but with smaller producers - Nigeria, Columbia and others - who have been losing U.S. domestic market share and started marketing to some of the Saudi’s big customers in Asia. The Saudis are trying to put the small producers out of business, more than trying to hurt, for very long, large producers.
Good. Sanctions? We don’t need no stinking sanctions.
Would be nice if this results in regime change to certain producing countries. Including the USA.