Can Saudi Arabia survive coming American Oil boom???

[T-123456]

USD$94 for break even? awful rate indeed.

They can increase production in no time,so it wont be a problem.
It was lower many times before.

 

[Azazel]

Emerging technologies to extract increasing quantities of gas, not just is the US but in China as well, suggest that higher prices for crude are not sustainable, regardless of whether to drill or not.

These high crude prices are artificially created by OPEC countries.In 2008 OPEC countries cut more than four million barrels of oil a day to stem a price crash during the financial crisis.They want high crude prices to finance their bloated budget.So what ever the case they will let the price of the crude drop too much.Which will lead to another interesting predicament.In order to be economically shale oil production requires high oil prices—typically $70 a barrel or above.So OPEC countries are essentially creating an environment that will essentially lead to a situation where they lose their ability to control global oil prices at will.

 

[Yzd Khalifa]

These high crude prices are artificially created by OPEC countries.In 2008 OPEC countries cut more than four million barrels of oil a day to stem a price crash during the financial crisis.They want high crude prices to finance their bloated budget.So what ever the case they will let the price of the crude drop too much.Which will lead to another interesting predicament.In order to be economically shale oil production requires high oil prices—typically $70 a barrel or above.So OPEC countries are essentially creating an environment that will essentially lead to a situation where they lose their ability to control global oil prices at will.

I can't speak for OPEC ,but I can say that we have reached some sort of agreements with our partners. We will also start producing shale oil in the next coming decade which is going to help us to sustain a decent price ,because we don't wish to produce more than what we need.

I would still consider the title of the thread hilarious though.

 

[Developereo]

Does anyone know how reliable the figures on wikipedia are about shale oil deposits?

According to it, the US by itself has over 2 trillion barrels of oil out of a global total of 2.8 trillion?

Oil shale reserves - Wikipedia, the free encyclopedia

 

[Luffy 500]

Lol China, turkey, India and plenty of other countries will be there to buy saudi oil. Oil will always be in demand as long as it exists. But KSA should look for diversification and build up an industrial base. They have a major resource to pursue massive industilization i.e money. KSA should find sectors in which it can excel and which are also relative to the petrochemical industry like chemicals, heavy construction, steel and some heavy industry.

 

[Yzd Khalifa]

Does anyone know how reliable the figures on wikipedia are about shale oil deposits?

According to it, the US by itself has over 2 trillion barrels of oil out of a global total of 2.8 trillion?

Oil shale reserves - Wikipedia, the free encyclopedia

Oil shale is a different story. We were talking about this

Lol China, turkey, India and plenty of other countries will be there to buy saudi oil. Oil will always be in demand as long as it exists. But KSA should look for diversification and build up an industrial base. They have a major resource to pursue massive industilization i.e money. KSA should find sectors in which it can excel and which are also relative to the petrochemical industry like chemicals, heavy construction, steel and some heavy industry.

Everything is planned and engineered Sir, don't worry. We always look forward to working with our ASIAN friends.

 

[Developereo]

Oil shale is a different story. We were talking about this

The 2 trillion barrels estimated are for shale oil, not oil shale.

 

[Azazel]

Does anyone know how reliable the figures on wikipedia are about shale oil deposits?

According to it, the US by itself has over 2 trillion barrels of oil out of a global total of 2.8 trillion?

Oil shale reserves - Wikipedia, the free encyclopedia

Very difficult to say,It all depends on the nature of Shale rock and the quantity of the useful oil it contains.Note that shale oil extraction technologies are still developing,So every thing is a guess.But surely it will change the global energy landscape for ever and polar bears can soon say good bye!!

 

[Yzd Khalifa]

The 2 trillion barrels estimated are for shale oil, not oil shale.

Actually Azazel was talking about oil shale not shale oil ,so I though that you were confused or something

 

[Developereo]

Very difficult to say,It all depends on the nature of Shale rock and the quantity of the useful oil it contains.Note that shale oil extraction technologies are still developing,So every thing is a guess.But surely it will change the global energy landscape for ever and polar bears can soon say good bye!!

The wiki says

By most definitions, "reserves" refers only to the amount of resource which is technically exploitable and economically feasible under current economic conditions. The term "resources", on the other hand, may refer to all deposits containing kerogen.

These figures are "resources", which means the oil's accessability is not represented. It's still a large number, though.

 

[Azazel]

I can't speak for OPEC ,but I can say that we have reached some sort of agreements with our partners. We will also start producing shale oil in the next coming decade which is going to help us to sustain a decent price ,because we don't wish to produce more than what we need.

I would still consider the title of the thread hilarious though.

Ahh,the title.Sorry about that,Don't get me wrong.I don't wish to make any political statement.The question here whether this North American oil boom will lead to a 1980 like oil glut like scenario that will pull down price too low.You know this oil glut was responsible for the collapse of the mighty USSR.So I won't underestimate the any potential impact of the upcoming shale oil boom.

 

[Yzd Khalifa]

Ahh,the title.Sorry about that,Don't get me wrong.I don't wish to make any political statement.The question here whether this North American oil boom will lead to a 1980 like oil glut like scenario that will pull down price too low.You know this oil glut was responsible for the collapse of the mighty USSR.So I won't underestimate the any potential impact of the upcoming shale oil boom.

Well, to set the record straight once more, the US will never become energy dependent ,period. As I mentioned earlier, the US consumes 20 million barrel a day and the figure is likely to increase by 10 million in the coming 10 years, which means that the US will have to seek more and more oil. Personally, I prefer to see the ME with less US influence in it. For KSA, I would rather keep doing more business with the east than the west these days, I think you already know the answer to that ..

You can't compare apples with oranges! The USSR collpase was imminent for various reasons.

Cheers

 

[Azazel]

The wiki says

By most definitions, "reserves" refers only to the amount of resource which is technically exploitable and economically feasible under current economic conditions. The term "resources", on the other hand, may refer to all deposits containing kerogen.

These figures are "resources", which means the oil's accessability is not represented. It's still a large number, though.

That's correct,The economic feasibility of oil shale extraction and processing is highly dependent on the global oil prices and the development of new drilling technology.At present the in US shale oil production will be economically viable at an estimated average global price of $54.With in a decade this might decline to around $40.So currently oil prices well above $90 much of the oil shale can be exploited economically.

 

[Azazel]

Well, to set the record straight once more, the US will never become energy dependent ,period. As I mentioned earlier, the US consumes 20 million barrel a day and the figure is likely to increase by 10 million in the coming 10 years, which means that the US will have to seek more and more oil. Personally, I prefer to see the ME with less US influence in it. For KSA, I would rather keep doing more business with the east than the west these days, I think you already know the answer to that ..

You mean energy independent right.Yeah,there are many ways to define energy independence.One is producing enough oil domestically so that there is no need for imports.This is were US is headed.Last year, the United States imported only 40 percent of the oil it consumed, down from 60 percent in 2005. And by next year, according to the US Energy Information Administration, the United States will need to import only 30 percent of its oil. That’s been driven by an almost overnight jump in domestic oil production, which had remained static at about 5 million barrels per day for years, but is at 7 million now and will be at 8.5 million by the end of 2014. If these trends continue, the United States will be able to supply all its own energy needs by 2030 and be able to export oil by 2035. In fact, according to the government’s latest projections, the country is on track to become the world’s largest oil producer in less than a decade.

But this may not mean US will be able to insulate from oil shocks.If some one blows up a major oil pipeline in the middle east,US will still feel the pinch.So yeah that one way of energy dependence for US.

You can't compare apples with oranges! The USSR collpase was imminent for various reasons.

Cheers :wave

That was one of the major reason for the sudden collapse of USSR.Many say it was Afghan war,but this had even more importance.The oil glut in 1980's oil glut ruined its economy which led to the glasnost and perestroika and eventual collapse.

 

[Ceylal]

Good for India, oil prices will fall.

not really! Prices are artificially maintained high and will remain so...For the first time , I paid $ 4 a gallon and for the first time gasoline price surpassed the one of diesel...For the USA to be a net exporter, it is just a hype!