Social Largess Speeds Rise in Oil Prices

Really?

RIYADH (Zawya Dow Jones)--Saudi Arabia's King Abdullah has ordered a halt to oil exploration operations to save the hydrocarbon wealth in the world's top crude exporting nation for future generations, the official Saudi Press Agency, or SPA, reported late Saturday.

"I was heading a cabinet meeting and told them to pray to God the Almighty to give it a long life," King Abdullah told Saudi scholars studying in Washington, according to SPA.

"I told them that I have ordered a halt to all oil explorations so part of this wealth is left for our sons and successors God willing," he said.

A senior oil ministry official, who declined to be named, told Zawya Dow Jones the king's order wasn't an outright ban but rather meant future exploration activities should be carried out wisely.

http://www.zawya.com/Story.cfm/sidZW201 ... e%20Wealth

chickaree wrote: Really?

RIYADH (Zawya Dow Jones)--Saudi Arabia's King Abdullah has ordered a halt to oil exploration operations to save the hydrocarbon wealth in the world's top crude exporting nation for future generations, the official Saudi Press Agency, or SPA, reported late Saturday.

"I was heading a cabinet meeting and told them to pray to God the Almighty to give it a long life," King Abdullah told Saudi scholars studying in Washington, according to SPA.

"I told them that I have ordered a halt to all oil explorations so part of this wealth is left for our sons and successors God willing," he said.

A senior oil ministry official, who declined to be named, told Zawya Dow Jones the king's order wasn't an outright ban but rather meant future exploration activities should be carried out wisely.

http://www.zawya.com/Story.cfm/sidZW201 ... e%20Wealth

Not the same as halting oil production. Halting production drives up oil prices, halting exploration does not. They have enough on tap to keep going at the current rate for at least 25 years. Besides, That move is ludicrous given the lag time involved to get from exploration to production. I've been through a similar round when I worked there. The king tells you one thing one day and the next day it is reversed. Go ahead an believe all you read, but 20 years of dealing with Aramco in Saudi Arabia has given me a far more direct insight.

Personally, I think this is a politically motivated statement given all the unrest in that part of the world.

If the king remains steadfast in his belief (remember these are people who believe that Allla will give them another field if one runs out) it certainly will help the rest of the world gain a better foot hold in oil production and exploration of oil shale resources, specifically the US, provided that we have a president who will encourage this rather than hinder oil companies.

chickaree wrote: That's why you aren't real conservatives. You don't even understand what it means. All you can think of is satisfying your own greed in the short term. You seem incapable of seeing the big picture. You don't care about the legacy you leave the next generation, much less the many to come. You are worse than liberals. They at least seek to help others no matter how ineffectively. You seek only your own gain.

rofllol What planet are you from?

OK, since you are so wise, if you could wave your magic wand and direct all the world leaders to act, what would your SOLUTION be? Would you have countries stop producing oil, limit the production of oil, and if you stop or limit oil, what would those consequences be to regular people like you and me or very poor people around the world? I'm sure you've already thought this through so it shouldn't be too hard.

You can just see the side effects of prescription drugs.

Insults. Is tat the best you can do? Thats what is wrong with the GOP, we're losing our thinkers.

what would I do Bill? I'd run America for Americans. Just as the Saudis aren't pumping full capacity, just as the Russians are limiting oil exports. This country needs to be self sufficient. If we drilled and pumped full capacity now all that oil would be diluted on the world market benefiting Americans very little. I 'd end these economy ending free trade agreements. I'd end corporate welfare. I'd use our profitable market as a bargaining chip and stop giving away our nations wealth and resources to those who don't have the long term well being of American citizens at heart. Unlike the current leadership of both parties I don't believe Exxon, Goldman Sachs, BP, Halliburton or any of theze transnationals are our friends. It's time to stop being everyones bitch.

Your tangent didn't answer my question....you also say we need to be self sufficient, how in the world will that happen? (I'm guessing you'll say windmills and solar panels).

chickaree wrote: Insults. Is tat the best you can do? Thats what is wrong with the GOP, we're losing our thinkers.

what would I do Bill? I'd run America for Americans. Just as the Saudis aren't pumping full capacity, just as the Russians are limiting oil exports. This country needs to be self sufficient. If we drilled and pumped full capacity now all that oil would be diluted on the world market benefiting Americans very little. I 'd end these economy ending free trade agreements. I'd end corporate welfare. I'd use our profitable market as a bargaining chip and stop giving away our nations wealth and resources to those who don't have the long term well being of American citizens at heart. Unlike the current leadership of both parties I don't believe Exxon, Goldman Sachs, BP, Halliburton or any of theze transnationals are our friends. It's time to stop being everyones bitch.

You have no idea of what you are talking about with the Saudi's. They've not been running full production for years since their reserves have increased so dramatically. And they have spent billions on upgrading and increasing their production capacity. I was on the ground there working on increasing reserves and production. Furthermore, they are regulated by other members of OPEC on how much they can produce. Only when there are emergencies like the current unrest among oil producers where demand outstrips production are they and others capable of doing so in OPEC allowed to increase production above their quotas.

As for your belief that we could even meet our daily needs by producing oil at full capacity in the US, you are delusional. You may hear of wells shut in, but it is not for the reasons you may think. Many are shut in because the reservoirs are so sh**ty they can not sustain production. We do not have the proven reserves to meet our needs. Aside from that, our needs are in refined HC not raw production. We are in desperate need of more refineries if we want to keep prices down. Right now foreign countries invest in building refineries (Saudi) among them. If you think you were paying through the nose now for fuel, wait because it is going to get worse once you start importing refined products.

Why should transnational companies be our friend? What an absurd notion. They are companies trying to make money. If you want them to be your friend, invest in them, Apple, Microsoft, etc.

So what would you propose we do?

No, we need to drill,but not until we've done as the Russians have andraised our tariffs on oil exports. Promoting the use of natural gas for cars, clean coal as well as solar, wind, tidal and putting the damned jumping mice on treadmills if that's what it takes. Being dependent on others for something as basic as our daily energy is foolish. Self sufficiency should be our goal. We've been sold a bill of goods with the free trade idea. Water finds it's level. Look around the world. Our level ain't going up in this equation. Yes, the corps will make their $$$ but the average American willbe screwed blue and tattooed in the process. I'm sick of the damned regurgitated talking points that have replaced actual thought bothhere and in the nationat large. I guess it's easier to post snoozy icons, accuse others of drug use, old age or racism than it is to exert yourself to have an independent thought. Perhaps Americans have grown too lazy and simple minded to think our way out of this mess.

And the Russian economy is?

The Russian economy, however, was one of the hardest hit by the 2008-09 global economic crisis as oil prices plummeted and the foreign credits that Russian banks and firms relied on dried up. The Central Bank of Russia spent one-third of its $600 billion international reserves, the world's third largest, in late 2008 to slow the devaluation of the ruble. The government also devoted $200 billion in a rescue plan to increase liquidity in the banking sector and aid Russian firms unable to roll over large foreign debts coming due.

I'll grant you that converting cars to running on gas would be a huge step forward. There is more gas than oil. Our oil exports are small (less than 2 million brls). The real question is why is that oil exported. The argument is it is a global commodity. Both refined and crude is exported. Perhaps a better way is to look at it as traded. "According to the latest Department of Energy figure, about 29,000 barrels of U.S. crude left the country in March — and all of it went to Canada, which sends roughly 2.5 million barrels day our way." Now that seems silly to do, but it's all about the economics of it. I'll be damned if I understand it. Your line of reasoning (not exporting) makes sense on a fundamental level but it still will not make us self sustaining. One of the biggest steps the US can take is conservation. Unfortunately, few are willing to take that route. Unlike Russia, we consume like crazy. Russia can afford to shut in its oil because they just don't consume like we do.
You make it seem like corporations have a moral obligation to the average American. The only obligation they have is to their shareholders. If you want to point fingers, point at the various indirect taxes that our government levies at corporations and they in turn pass it along to all of us. It's this kind of hidden form of taxation that drives me f..king crazy. There is no honesty. Want honest. Tax us directly. At least that way we can see that out of every dollar we earn more than 50% goes toward some form of tax.

There is nothing wrong with not being dependent on others for our needs. I'm all for that.