The future of oil and gas on the world stage ! (home, calculation)

[Zhang Fei]

Originally Posted by chris_ut

Is that adjusted for inflation? $20 from 1990 adjusted is now $36.

Regardless the major factors are.

1. Population increase:

Population of Saudi Arabia in 1990: 16.2 million

Population of Saudi Arabia in 2013: 28.8 million


2. Cost of extraction. You always produce the cheapest oil first so as time goes n your cost to pump a barrel goes higher and higher.

5.5m to 10m of that 2013 number are foreigners. When an economic trough comes, they will simply be laid off.

[julia1999]

Originally Posted by still_waiting

Guys the super majors are still out here recruiting at top universities. When I asked about the situation I was told something different from the speculation that's been going around. If the bottom was truly falling out then I'm sure the recruiters would not still be out. There's still a relatively aging workforce that needs to eventually be replaced and bringing in the newbies provides concurrence and continuity.

I am not sure about the super majors. But many service companies still post advertisements and even interview people. But it did not mean they will make a offer to the candidate. I know one company conduct two rounds of interviews through phones for ppl outside Houston. In the past, they usually invite candidates for the second-stage on-site interview.

[Jack Lance]

Here is an interesting perspective from Ron Insana of CNBC, excerpts below

What the US should do to fight this 'oil war'

"This renewed threat from OPEC, and more specifically Saudi Arabia, demands the energy policy equivalent of a military response!!!

While my suggestions will no doubt be offensive to environmentalists, progressives, or anyone who finds "big oil" to be an evil industry, the fracking revolution must be protected at all costs, even if it means subsidizing the industry with tax credits that allow the drilling to go on at below-market prices. "

What the US should do to fight this 'oil war'

[ToyYot]

Differing perspectives can be interesting!

How low can you go? Unlike many OPEC nations that are continuing to sell oil at prices below what they've budgeted for, U.S. shale companies can keep making money even if oil falls further.

"...many analysts predict that the industry will continue to grow next year, albeit at a more moderate pace."

U.S. energy defiant in 'oil war' with OPEC - Dec. 2, 2014

[14Bricks]

Originally Posted by ToyYot

Differing perspectives can be interesting!






U.S. energy defiant in 'oil war' with OPEC - Dec. 2, 2014

Thanks for the article. I didn't know the Saudis were the reason for the oil crash in the 80's, which had a negative impact on our city. Why do we spend money to protect the Saudis again? We should have let saddam butcher them back in 91.

[ipuck]

Originally Posted by Jack Lance

"This renewed threat from OPEC, and more specifically Saudi Arabia, demands the energy policy equivalent of a military response!!!

Now you just quoting crazies.

Should we start another war to drive up the oil price?

[Jack Lance]

Originally Posted by ipuck

Now you just quoting crazies.

Should we start another war to drive up the oil price?

That is a straw man fallacy and I will not bother responding directly to it.

If you had read the whole article you may have understood what tactics and ideas he was advancing.

[still_waiting]

Originally Posted by julia1999

I am not sure about the super majors. But many service companies still post advertisements and even interview people. But it did not mean they will make a offer to the candidate. I know one company conduct two rounds of interviews through phones for ppl outside Houston. In the past, they usually invite candidates for the second-stage on-site interview.

Hard offers are being made by the super majors still, and even the intern to hire position offers are still being made for numbers that would make people's head spin including relocation and housing.

[misterno]

Originally Posted by bayou_boy

Yeah right...

"It might seem that the country which is the world's largest exporter must lose out. With oil at $115 a barrel, Saudi Arabia earns $360 billion in net exports a year; at $85, $270 billion. Its budget has almost certainly gone into the red. Prince Alwaleed bin Talal, an influential businessman, called lower prices a "catastrophe" and expressed astonishment that the government was not trying to push them back up.

But Saudi Arabia's long-term interest may in fact be served by a period of cheaper oil. It can afford one, unlike most other exporters. Though public spending has risen in recent years, its foreign reserves have risen more. Net foreign assets were 2.8 trillion riyals ($737 billion) in August--over three years' current spending. It could finance decades of deficits by borrowing from itself even if oil were cheaper than it is now."



Read more: Here Are The Big Winners And Losers Of Low Oil Prices - Business Insider

It can live on foreign reserves for how long?

before that the financial markets will immediately tank Saudi Arabian Riyal in the exchange market

That is what happened before when oil dropped to 10 dollars.

Once the currency tanks the whole economy will take a new shape.

[bayou_boy]

Originally Posted by misterno

It can live on foreign reserves for how long?

before that the financial markets will immediately tank Saudi Arabian Riyal in the exchange market

That is what happened before when oil dropped to 10 dollars.

Once the currency tanks the whole economy will take a new shape.

According to the article and various others, Saudia Arabia can withstand these low oil prices for a while which is partly why they didn't cut production.

When the Saudi's allowed oil to drop to $10 it was a strategic decision against the USSR and in this case a strategic decision against US shale producers. Saudi's will play hardball and suffer short term economic consequences in exchange for whatever ends they seek.