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(Yahoo)   Member of the Saudi royal family fears North Dakota will throw them in the wood chipper   (news.yahoo.com) divider line 16
    More: Obvious, Saudi royal family, North Dakota, Saudis, shale oil, shale gas, Tom Kloza  
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6774 clicks; posted to Main » on 01 Aug 2013 at 9:32 AM (51 weeks ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



Voting Results (Smartest)
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2013-08-01 09:41:48 AM
3 votes:
I don't get why were doing this. Shouldn't we use nothing but Middle eastern oil?

Use it all up. Eliminate their power over us as quickly as possible. Save ours for when it's expensive and really valuable.

When only one country in the world has oil left, it'd be nice if it was the US and not some country like Saudi Arabia.
2013-08-01 09:50:18 AM
2 votes:
It costs about $2 to extract a barrel of oil in Saudi but about $30-50 to extract a barrel in North Dakota.

Saudi needs oil above ~$55/barrel to fund the running of their entire country. North Dakota oil companies need sustained oil prices to be above ~$60 to start to make a profit.

Now... when Saudi runs out of oil - that is a much bigger problem for them.
2013-08-01 09:35:38 AM
2 votes:
cdn.meme.li

F*ck you, Saudis
2013-08-01 12:19:29 PM
1 votes:
Oh no, you based your economy on a single nonrenewable resource and now your worried others might have have access to it without you.....oh dear.
2013-08-01 10:56:45 AM
1 votes:

AhDammit: It's their fault.  They've allowed crude prices to rise to a point where extraction is cost effective.  If prices dropped to $60 a barrel, oil companies are going to be a lot less willing to spend money to extract from shale.

What could destroy them is the cost of shale extraction going down (it will) and enough production to crash crude prices.  If China ramps up their operations the Saudis will be pretty much fscked.  The best part about it is that they will have done it to themselves, and could have prevented it.  Stupid and greedy is a poor combination.


Crude will need to crash to below about $55/barrel before Saudi even starts to hurt. It will take some major improvements in shale extraction before it will be a viable enterprise with Oil at that price point, and even then a lot of Shale extractors would probably look to dial back production and wait until oil goes back up a bit rather than drain their wells at just above break-even.
2013-08-01 10:49:57 AM
1 votes:
It's their fault.  They've allowed crude prices to rise to a point where extraction is cost effective.  If prices dropped to $60 a barrel, oil companies are going to be a lot less willing to spend money to extract from shale.

What could destroy them is the cost of shale extraction going down (it will) and enough production to crash crude prices.  If China ramps up their operations the Saudis will be pretty much fscked.  The best part about it is that they will have done it to themselves, and could have prevented it.  Stupid and greedy is a poor combination.
gja [TotalFark]
2013-08-01 10:39:57 AM
1 votes:

wxboy: jmsvrsn: North Dakota has a state run bank and over 1000 nuclear war heads so there may be cause for concern.

Sounds like we need to invade them.


/protip for invasion: bring warm stuff to wear.
cdn.blu-raydefinition.com
2013-08-01 10:30:26 AM
1 votes:

jmsvrsn: North Dakota has a state run bank and over 1000 nuclear war heads so there may be cause for concern.


Sounds like we need to invade them.
2013-08-01 10:12:33 AM
1 votes:
North Dakota has a state run bank and over 1000 nuclear war heads so there may be cause for concern.
2013-08-01 09:55:40 AM
1 votes:

95629: I don't get why were doing this. Shouldn't we use nothing but Middle eastern oil?

Use it all up. Eliminate their power over us as quickly as possible. Save ours for when it's expensive and really valuable.

When only one country in the world has oil left, it'd be nice if it was the US and not some country like Saudi Arabia.


You would have to nationalize the oil industry to do that. At the moment the extracted oil doesn't belong to America, it belongs to whichever oil company extracted it and they will sell it wherever they can make the most profit.
2013-08-01 09:52:40 AM
1 votes:

95629: I don't get why were doing this. Shouldn't we use nothing but Middle eastern oil?

Use it all up. Eliminate their power over us as quickly as possible. Save ours for when it's expensive and really valuable.

When only one country in the world has oil left, it'd be nice if it was the US and not some country like Saudi Arabia.


That's a nice thought but global commodities don't work like that. Currently, the majority of the oil we consume comes from Canada and Mexico, with Venezuala and other oil exporters filling in the voids of supply.
Our friends to the north have been oil independent for years...it's not a big whoop as that suddenly doesn't make oil über cheap.
2013-08-01 09:50:00 AM
1 votes:

Maud Dib: Let 'em poundeat sand.


FTFY
2013-08-01 09:40:36 AM
1 votes:
Oh, I do like this quote FTFA though:

Chuck Wilder, who runs local bookstore Broadway Books, says he remembers the oil shocks of the 1970s, when OPEC "held the U.S. hostage" over oil.
Now, he says, the Saudis "need to get used to the idea that they're not the only ones with oil." As for the royal family feeling fear? "It couldn't happen to a nicer bunch."



overthepylon.files.wordpress.com
2013-08-01 09:39:00 AM
1 votes:
Is this supposed to make us feel for the Saudis or something?
2013-08-01 09:34:39 AM
1 votes:
Good. Let them go back to selling egg timers.
2013-08-01 09:33:59 AM
1 votes:
Well it isn't a fargone conclusion, eh?
 
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