[ExI] Oil

Kelly Anderson kellycoinguy at gmail.com
Thu Jan 15 19:16:12 UTC 2015

On Thu, Jan 15, 2015 at 12:08 PM, John Clark <johnkclark at gmail.com> wrote:

> On Wed, Jan 14, 2015  Kelly Anderson <kellycoinguy at gmail.com> wrote:
>> > It's no great mystery, with oil prices super low OPEC's profits are way
>>> way down, if they lower production profits would go down even more and oil
>>> money is the only thing that is keeps countries like Saudi Arabia from
>>> falling apart. Except for oil what does Saudi Arabia have that the world
>>> wants?
> > But in the past, OPEC (most specifically Saudi Arabia) has reduced
>> production to keep prices from going too low.
> Because in the past there was no slack in the production end of things so
> when Saudi Arabia reduced production there just wasn't enough oil to go
> around, so they could set oil prices at pretty much anything they wanted,
> but with the huge increase in oil production by the USA that is no longer
> true.  Saudi Arabia knows that if they reduced production this time it
> would have little effect on oil prices and would reduce even more their
> already drastically reduced oil income, and as I said without oil money to
> keep their population content the country, especially their leaders, would
> be toast.

Okay, I think I see their problem now. It is still somewhat surprising that
SOMEONE isn't interested in saving up their oil for a more profitable day.
I guess in this economy everyone is scrounging for whatever they can get
for whatever they have.

> >> when did Obama get the power to tell OPEC what to do?
> > The US president can certainly be PERSUASIVE with people like Saudi
>> Arabia. He can't tell them what to do, but he can suggest strongly.
> All US presidents since Jimmy Carter have begged Saudi Arabia to lower oil
> prices but it's never worked, they do what they want to do; but this time
> there would be no reason to even ask because Saudi Arabia is no longer in
> the driver's seat.

Okay. Fair enough then. But while SA is no longer number one, they are
still a big driver.

-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://lists.extropy.org/pipermail/extropy-chat/attachments/20150115/683e0a34/attachment.html>

More information about the extropy-chat mailing list