Official Kingdom of Saudi Arabia Collapse Thread...They're absolutely FU&KED!!!

[☑︎#VoteDemocrat]

The biggest difference between now and the 90s is a couple of things. The shale gas industry has survivded. The only reason why Saudi Arabia allowed more production of oil back in 2012 was to kill the North American shale gas industry. The reason was simple the shale gas industry has actually lowered gas prices and bring more supply into the oil market. Now that Saudi Arabia has mulled they may cut production this will only help the shale gas industry. The price goes up and the shale gas industry will boom while OPEC nations with the exception of Iran,Iraq,Libya and Nigeria will suffer. Second the Saudis are burning cash like crazy. The biggest example is the war in Yemen. The Saudis are spending $20 million a day in that war. Mind you the US is spending $11 million a day with the war against ISIS in Iraq and Syria and Russia is spending $3 million a day in their intervention in Syria. And this war is a bogged down stalemate for the Saudis. It isnt going to end any time soon. It has essentially becomed their Afghan War. Iran and Russia made it clear they wont cut production. So even if the Saudis cut production the price of gas will go up but it wont reach the $64.50 the Saudis needs because Iran,Russia,Iraq and the shale gas industry will only increase production. So they are fukked as the thread title says.

lets not forget...the saudis are STRETCHED right now...they're fighting like 2 wars

 

[☑︎#VoteDemocrat]

 

[Wild self]

Yep this shyt was hurting them in the late 90s as well. When the economy is good oil prices drop. shyt America/European oil companies are losing money like crazy since 2010. After record profits during the 2000s. We are just in a replay of the late 90s now.

But don't worry the economy will be coming down in the next 2 to 3 years so we will be back to 4 dollars or more gas. shyt just a damn cycle. Saudis and the American / European oil companies will be making money hand over fist in a few years.

You forgot cars like Tesla and other electric cars are (almost) readily available to use. At this point, the concept of gas is a question of how much longer until alternative fuel becomes the norm.

 

[ADevilYouKhow]

lets not forget...the saudis are STRETCHED right now...they're fighting like 2 wars

More than that. They'll be fine.

 

[Originalman]

You forgot cars like Tesla and other electric cars are (almost) readily available to use. At this point, the concept of gas is a question of how much longer until alternative fuel becomes the norm.

Trust it will take decades after decades after decades. We use oil to make damn near everything from roads to manufacturing goods. Only half of the petroleum in a 42 barrel of oil is used to make fuel. The rest is to make damn near everything that you touch on a given day.

Also 18 wheelers, planes and ships (vessels) run on fuel. Those things are no where near going to electricity and we can't do without them in out lives because they transport everything. Hell the US and most militaries couldn't even defend themselves without fuel. Those B-52s, B-2s, F-35, F-22, tankers, surveillance planes and etc that defend our country ain't running off electricity or nuclear power (which was tried before but the concern was what would happen if the plane crashed).

 

[Wild self]

Trust it will take decades after decades after decades. We use oil to make damn near everything from roads to manufacturing goods. Only half of the petroleum in a 42 barrel of oil is used to make fuel. The rest is to make damn near everything that you touch on a given day.

Also 18 wheelers, planes and ships (vessels) run on fuel. Those things are no where near going to electricity and we can't do without them in out lives because they transport everything. Hell the US and most militaries couldn't even defend themselves without fuel. Those B-52s, B-2s, F-35, F-22, tankers, surveillance planes and etc that defend our country ain't running off electricity or nuclear power (which was tried before but the concern was what would happen if the plane crashed).

The late 2000s, was when gas peaked in price, and it only gotten, down from there. If gas ever hit $5 again, electric cars will spike in sales again. And Uber.

The military is still searching get for ways to run itself without gasoline cause they fear that gas will run out.

 

[TLR Is Mental Poison]

The late 2000s, was when gas peaked in price, and it only gotten, down from there. If gas ever hit $5 again, electric cars will spike in sales again. And Uber.

The military is still searching get for ways to run itself without gasoline cause they fear that gas will run out.

Last time gas hit $4 all that happened was a slight drop in demand. People might move more to hybrids and smaller cars but gasoline will still be 100% in play. The infrastructure and trust of electric cars isn't there, even if gas spikes to $10/gallon.

 

[ⒶⓁⒾⒶⓈ]

lets not forget...the saudis are STRETCHED right now...they're fighting like 2 wars

Really??? I thought you were a Geo politics savant? Why do you think they started those wars


HINT : War is the best way to get an entitled population to accept Austerity without risking domestic rebellion...In wartime they can cut welfare spending,raise taxes,trim their bloated civil service and anyone who speaks up against it will be called unpatriotic and get lit up.
And as a bonus they can also get rid of unpopular or disloyal militarily officers by setting them up.

 

[TLR Is Mental Poison]

Really??? I thought you were a Geo politics savant? Why do you think they started those wars


HINT : War is the best way to get an entitled population to accept Austerity without risking domestic rebellion...In wartime they can cut welfare spending,raise taxes,trim their bloated civil service and anyone who speaks up against it will be called unpatriotic and get lit up.
And as a bonus they can also get rid of unpopular or disloyal militarily officers by setting them up.

Problem is they are going to war with a lot of sects that are in the population

It would be like if the US tried to get Latinos to accept austerity by going to war with Mexico

The people "in charge" in KSA really aren't. They answer to a "higher power" that has them hostage. From that POV stupid shyt like the war in Yemen and mosques in Belgium make complete sense

 

[ⒶⓁⒾⒶⓈ]

Problem is they are going to war with a lot of sects that are in the population

Like the ruling elites ever have any Allegiance to any Race or tribe...You think they give a fukk about them or even their own...Whose people did stalin march into the Gulags..Did Mao execute Japanese? Trust me they have no problem putting a gun in the face of people who look like them and squeezing the trigger

It would be like if the US tried to get Latinos to accept austerity by going to war with Mexico

No it would be like the US tried to get the entire Country to accept austerity by going to war with mexico...including Mexican Americans

The people "in charge" in KSA really aren't. They answer to a "higher power" that has them hostage. From that POV stupid shyt like the war in Yemen and mosques in Belgium make complete sense

Please tell us more... Because to me it looks like the House of saud is making moves to hang on to power

 

[TLR Is Mental Poison]

Like the ruling elites ever have any Allegiance to any Race or tribe...You think they give a fukk about them or even their own...Whose people did stalin march into the Gulags..Did Mao execute Japanese? Trust me they have no problem putting a gun in the face of people who look like them and squeezing the trigger

We aren't talking about Stalin or Mao. We're talking about KSA.

No it would be like the US tried to get the entire Country to accept austerity by going to war with mexico...including Mexican Americans

Right, Latinos are part of the US, just as Shi'ites are part of KSA, who KSA is waging war on and declaring mortal enemies through proxy wars like the shyt in Yemen.

Please tell us more... Because to me it looks like the House of saud is making moves to hang on to power

All the info is laid out pretty cleanly in this thread, but as usual you choose to skip the facts and fill in the gaps with your idiotic speculations and platitudes.

The Sauds have ZERO control over what goes on in their country. They are bound by the whims of the oil market on one side, and the very real threat of a jihadi uprising from their fundamentalist religious clerics on the other. They are just along for the ride at this point.

 

[Trajan]

The Pandora's box of listing the state oil company Aramco

Saudi Arabia’s Deputy Crown Prince, Mohammad bin Salman, has reportedly embraced a report from the management-consulting firm of McKinsey and Company, entitled Vision 2030, as his blueprint for weaning the Saudi economy from oil and laying the foundations for a thriving private sector. In conjunction with this much-publicized initiative, he has also decided to sell a 5-10 percent stake in the country’s national oil company, its crown jewel—Aramco—through an initial public offering (IPO). A number of international investment banks will reportedly manage the IPO and Aramco’s market capitalization is expected to be in the vicinity of two trillion dollars, a newly listed company with the largest market capitalization on the planet.

The pricing of shares in IPOs is determined by financial and industry experts on the basis of the company’s economic and financial data and prevailing market conditions. In the case of a ‘normal’ oil company, this would be based on extensive geological findings of recoverable reserves, average and marginal production cost of a barrel of oil from these reserves, current and projected price of oil and ultimately on discounted annual earnings of the company after all applicable taxes. Would these requirements and projections be followed in the same format for an Aramco IPO? We believe not because the calculations would require extensive intrusion into what have been guarded secrets in Saudi Arabia and Saudi Arabia’s acceptance of a number of highly sensitive covenants.

First, the details of Saudi Arabia’s claims to Aramco’s stated oil reserves would have to be independently verified on the basis of confidential geological surveys in the hands of the Saudi government and additional surveys as needed.

Second, Saudi Arabia would have to disclose heretofore-secret data on oil production cost in all wells to allow independent estimation of the production cost of a barrel of oil from different fields in the kingdom.

Third, Saudi Arabia would have to reveal all operating financial figures on Aramco to facilitate earnings and financial projections.

Fourth, there would need to be detailed clarification of what are the ownership boundaries of oil fields for the newly listed Aramco. Does all oil in discovered and undiscovered fields belong to Aramco or is its ownership restricted to the boundaries of all discovered fields?

Fifth, as Aramco would be subject to all laws and taxes imposed by the government of Saudi Arabia, what concessions and covenants would be required to give investors the needed assurances that the government would not impose capricious taxes and requirements that could benefit the Saudi Treasury and penalize investors?

Sixth, and related to the previous point, Saudi Arabia has traditionally run all its ministries and publicly owned companies with a preference of employing Saudi nationals at a higher salary than afforded in the private sector; and with a level of employment that includes a large degree of redundancy. Would Saudi Arabia provide a covenant that such financially wasteful practices would be terminated in Aramco when it was listed?

Seventh, as the majority stockholder in the new Aramco, what assurances would the government afford investors that it would not use oil as an economic or political instrument of its foreign policy that could adversely affect Aramco’s earnings? In other words, would Saudi Arabia agree to covenants that affirmed that Aramco would be managed as a ‘normal’ profit-maximizing firm for the financial benefit of its stockholders and free from all political interference?

Eighth, the IPO will reportedly be for 5-10 percent of the shares in Aramco, with the result that the Saudi government would retain the overwhelming share of the traded company. But Saudi Arabia belongs to OPEC, a recognized cartel the world over with collusion as its modus operandi to establish higher prices than those that would prevail in a free market. Would Saudi Arabia’s association with OPEC represent a barrier for the listing of the stock on major stock exchanges around the world, something that would enhance its liquidity and attraction and be essential for most foreign investors? If its OPEC membership poses a problem for listing and for a variety of legal considerations, would Saudi Arabia be willing to abandon its membership in OPEC?

This list, which is by no means exhaustive, points to two important facts. For the IPO to succeed, Saudi Arabia will have to disclose a great deal of facts and figures that it has traditionally viewed as state secret and it will have to change many of its economic and financial policies and legal practices that may be deemed objectionable to foreign investors. The question is whether Prince Mohammad and the Al-Saud clan are willing to accept these and much more disclosures, intrusions and covenants to make Aramco’s IPO a financial success?

Aramco's IPO: A Pandora's Box for Saudi Arabia | Huffington Post

 

[☑︎#VoteDemocrat]

 

[ⒶⓁⒾⒶⓈ]

We aren't talking about Stalin or Mao. We're talking about KSA.

Oh im sorry I thought the question at hand was the methods autocrats use to hang on to power....not specific personality types or ideology

Right, Latinos are part of the US, just as Shi'ites are part of KSA, who KSA is waging war on and declaring mortal enemies through proxy wars like the shyt in Yemen.

And that was my point ...Thank you for agreeing with me

All the info is laid out pretty cleanly in this thread, but as usual you choose to skip the facts and fill in the gaps with your idiotic speculations and platitudes.

Sure buddy...The info is laid out like i said they're going broke,their civil service is bloated, The population growth is too high,too unproductive,too reliant on foreign labor ,foreign expertise and too heavily reliant on state subsidies

The Sauds have ZERO control over what goes on in their country.

You based this opinion on what??

They are bound by the whims of the oil market on one side, and the very real threat of a jihadi uprising from their fundamentalist religious clerics on the other. They are just along for the ride at this point.

Who chooses and funds the clerics....The religious leaders are not independent they still need to eat and allah aint dropping food

Saudi Arabia has executed the prominent Shia cleric Sheikh Nimr al-Nimr, the interior ministry said. He was among 47 people put to death after

 

[TLR Is Mental Poison]

Who chooses and funds the clerics....

NOT the Sauds.