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Gold/Mining/Energy : Big Dog's Boom Boom Room
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To: Biomaven who wrote (186915)12/5/2014 1:52:56 AM
From: Elroy Jetson1 Recommendation

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kidl

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I think you're imagining nefarious motives Saudi Arabia simply doesn't have.

For decades Saudi Arabia was the only member of OPEC to actually fully restrict their output to the full extent of OPEC agreements, while every other OPEC member state openly cheated - often exporting even more oil when prices rose after Saudi Arabia cut output.

Saudi Arabia was so compliant I used to routinely read nonsense commentaries on places like "The Oil Drum" claiming secret conspiracies that in fact Saudi Arabia was only restricting their output because they couldn't produce more or faster.

With oil demand weak and gas supplies rising, there was simply no reason for Saudi Arabia to continue playing the idiot rich Uncle to other OPEC members. The only hope Saudi Arabia has to restore any discipline to OPEC is to open their flood-gates to the point where other OPEC members have cause to remember why OPEC existed in the first place. John Kerry suggested to them lower oil prices right now could punish two of their enemies in particular, Iran and Russia - Syria's banker. Everything aligned at one magical moment and the Saud family saw the light.

Sure that Saud Family has more money than God. I saw their yacht, the "Prince Abdulla Aziz" docked in Ibiza last summer as bullet-proof SUV's whisked their party off to various discotheques. The yacht is so big it has its own completely equipped hospital on board. But just because you have more money than you know what to do with reasonably doesn't mean you want to continue playing patsy to a bunch of ingrates.

Without OPEC, the real price of oil and gas has continued to decline ever since the very beginning of the oil and gas industry. It's ruinous. It's the primary reason Rockefeller created a monopoly to restrict supply and create some profit margin for those in the oil and gas industry.
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