Topaz Posted October 27, 2015 Report Share Posted October 27, 2015 Reports out say within 2 years SA could go broke and I wonder where will that leave oil prices or the global economy and also what affect will Canada's oil industry be. In another article I read lately, stated that reserves of oil are almost to their limits but still gas prices are still high in North America. http://www.telegraph.co.uk/finance/oilprices/11768136/Saudi-Arabia-may-go-broke-before-the-US-oil-industry-buckles.html Quote Link to comment Share on other sites More sharing options...
-1=e^ipi Posted October 27, 2015 Report Share Posted October 27, 2015 No, they can just raise oil prices. Quote Link to comment Share on other sites More sharing options...
Big Guy Posted October 27, 2015 Report Share Posted October 27, 2015 For years the Saudis have been preparing for the day the oil runs out. They have been planning fo tourism, investing in Russian and North American business, investing $billions in solar power etc. I believe that they are ready when the oil runs out. Quote Link to comment Share on other sites More sharing options...
Moonlight Graham Posted October 27, 2015 Report Share Posted October 27, 2015 For years the Saudis have been preparing for the day the oil runs out. They have been planning fo tourism, investing in Russian and North American business, investing $billions in solar power etc. I believe that they are ready when the oil runs out. Source? That's not what the OP article said, actually the exact opposite. Quote Link to comment Share on other sites More sharing options...
Moonlight Graham Posted October 27, 2015 Report Share Posted October 27, 2015 No, they can just raise oil prices. According to this article, no they can't. They raised oil prices over the last 10-15 years in order to make more money, but then this had the result of making more costly oil extraction methods in Canada and the US profitable and also inspired reduced oil consumption globally (ie: more efficient cars, alternative energy like solar/wind) and therefore the Saudi's have been the creation of their own competition in the oil market. I think it works like this: If Saudi's/OPEC keeps oil at a low price they lose money and must increase production to make up for it and thus will run out of oil reserves faster, but if they raise the price again by reducing production they will increase their global competition (which means less countries/people are buying oil from Saudi Arabia) and inspire oil consumers to reduce their consumption. More countries producing oil also means Saudi Arabia/OPEC has less global political/economic power because the world (especially North America) doesn't have to depend as much on Saudi/OPEC oil. Quote Link to comment Share on other sites More sharing options...
-1=e^ipi Posted October 28, 2015 Report Share Posted October 28, 2015 Canadian Oil is basically dead so is a non-issue. We can't build a pipeline north, south, east or west in this country. The Saudi's lowered oil prices to simultaneously hurt many enemies: ISIS, Iran, Russia, Canadian Oil Sands, US Shale oil. They have done what they planned to do and I doubt they ever wanted to permanently keep oil prices low. They will go up eventually. Quote Link to comment Share on other sites More sharing options...
Bonam Posted October 28, 2015 Report Share Posted October 28, 2015 Canadian Oil is basically dead so is a non-issue. We can't build a pipeline north, south, east or west in this country. The Saudi's lowered oil prices to simultaneously hurt many enemies: ISIS, Iran, Russia, Canadian Oil Sands, US Shale oil. They have done what they planned to do and I doubt they ever wanted to permanently keep oil prices low. They will go up eventually. And when they do, those other producers which are currently being priced out of the market can come back online, too. The shale oil industry in the US is pretty agile, it can ramp up capital investment and get new oil to market fairly quickly when prices come back up. That said, I don't think Saudi Arabia is gonna go broke, but I think they are going to keep feeling an inevitable squeeze. The viability of so many other oil sources which weren't available before along with the increasing availability of alternative energy sources is making middle eastern oil less of a global strategic essential with each passing year. Oil exporters that haven't used the last few decades of easy money to diversify their economies are definitely gonna feel the pain in the coming decade or two, I think. Quote Link to comment Share on other sites More sharing options...
Big Guy Posted October 28, 2015 Report Share Posted October 28, 2015 Source? That's not what the OP article said, actually the exact opposite. Sorry, I was thinking of Dubai. I had recently read about their plans and confused that with Saudi Arabia. http://www.dubaiplan2021.ae/wp-content/uploads/2015/06/DP2021_Booklet_AE.pdf Thank you for the correction. Quote Link to comment Share on other sites More sharing options...
Smallc Posted October 30, 2015 Report Share Posted October 30, 2015 For years the Saudis have been preparing for the day the oil runs out. They have been planning fo tourism, As far as I know, you can't even go there as a tourist. Quote Link to comment Share on other sites More sharing options...
GostHacked Posted October 30, 2015 Report Share Posted October 30, 2015 As far as I know, you can't even go there as a tourist. If you have enough money, you sure can. And even a few bucks makes any official look the other way. Quote Link to comment Share on other sites More sharing options...
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