View Full Version : Saudi Reformation?
FromMyColdDeadHand
11-05-17, 09:11
http://www.cnn.com/2017/11/05/middleeast/saudi-arabia-anti-corruption-list/index.html
Intresting that the main driver for going after corruption is lower oil prices. Any why do we have lower oil prices? Fracking. It would be funny if Fracking is what leads to a moderation and end to Saudi extremism and sponsored terrorism.
That or new tyrants often use reform as a way to consolidate power.
I wonder if any of these specific individuals have ties to HRC, TCF, the DNC?
It could all be part of this big, slow, drawn out theater that is global politics (ie dominoes falling, however we are fed a plausible but only partial truth).
Even if we never bought another drop of Saudi oil, China and Russia will still be purchasing in ever increasing quantities for the next 50 years.
SilverBullet432
11-05-17, 13:21
http://www.cnn.com/2017/11/05/middleeast/saudi-arabia-anti-corruption-list/index.html
Intresting that the main driver for going after corruption is lower oil prices. Any why do we have lower oil prices? Fracking. It would be funny if Fracking is what leads to a moderation and end to Saudi extremism and sponsored terrorism.
That or new tyrants often use reform as a way to consolidate power.
Combination of hydraulic fracturing and horizontal drilling.
Plus lower prices all around, producers can now drill a 18,000 foot well for $4 million cheaper than in 2011-13.
That same well comes in at 3,000 barrels a day, and steadily declines but continues strong.
Better technology + high production = oil excess = lower prices.
Granted, the Saudi’s lift cost is probably dirt cheap.
sundance435
11-05-17, 17:15
Modern fracking was a game-changer for oil politics. OPEC tried to rig prices again to force fracking cos. out of the business - all it did was sideline some production temporarily - rigs were back up and running with the increase in barrel prices. They're about 30 years late to the game to modernize their economy and make it less dependent on oil. They're feeling the pressure to diversify or face real challenges to the rule of the House of Saud. Everyone, including the Chinese, are finding ways around the unreliable nature of Mid East oil. If we can get better price support for LNG, then fracking also has the ability to challenge Russian NG dominance in Europe, as well. That being said, the Saudis' cost to produce is under $10 a barrel. They can weather lower prices for a long time, but you're already seeing the strain on their economy from it, hence the "rapid" (rapid by Middle East standards) move to diversify. They're blowing through their sovereign wealth fund to prop up price controls and handouts that have kept the population appeased for decades.
However, some of this is just good ol' family rivalry.
SilverBullet432
11-05-17, 17:18
Modern fracking was a game-changer for oil politics. OPEC tried to rig prices again to force fracking cos. out of the business - all it did was sideline some production temporarily - rigs were back up and running with the increase in barrel prices. They're about 30 years late to the game to modernize their economy and make it less dependent on oil. They're feeling the pressure to diversify or face real challenges to the rule of the House of Saud. Everyone, including the Chinese, are finding ways around the unreliable nature of Mid East oil. If we can get better price support for LNG, then fracking also has the ability to challenge Russian NG dominance in Europe, as well.
However, some of this is just good ol' family rivalry.
They’ve always been dominant on production because their oil is basically seeping out on its own. Modern practices have allowed us to produce near the same, not as cheap though. Same goes for the ruskies, the US has vast amounts of gas. We have the ability to really become a major producer and not just consumer...
I saw a thing once that said if gas prices get above $3.00 a gal. fracking companies can't compete with regular oil companies. So a lot or most fracking sites are idled.
I kind of remember fracking really taking off in places like N. Dakota's Bakken area, then all the sudden gas prices dropped to their lowest prices in a decade or so then remaining that way. I'm no SME in the oil industry, but if the threat of fracking keeps gas/oil prices down, sounds good to me.
NYH1.
SilverBullet432
11-05-17, 18:54
I saw a thing once that said if gas prices get above $3.00 a gal. fracking companies can't compete with regular oil companies. So a lot or most fracking sites are idled.
I kind of remember fracking really taking off in places like N. Dakota's Bakken area, then all the sudden gas prices dropped to their lowest prices in a decade or so then remaining that way. I'm no SME in the oil industry, but if the threat of fracking keeps gas/oil prices down, sounds good to me.
NYH1.
Let me shine some light on the subject for you:
“Fracking companies” are service companies like Schlumberger, Halliburton, Baker Hughes etc.. They do the “frac job” for the operator: The oil company. Like Chevron, BP, ConocoPhillips etc...
All oil companies Frac.
Frac is a form of well stimulation and the practice is very very common.
Not all wells are “Frac’ed” only tighter formations that won’t produce effectively without stimulation are frac’ed.
It is an expensive process, so many companies drill the wells and won’t complete them for some time.
Either until economics are right or the state/federal agency forces the operator to either complete the well ( frac’ing is involved in completing the well ) or plug it.
Coal Dragger
11-05-17, 20:12
Modern fracking was a game-changer for oil politics. OPEC tried to rig prices again to force fracking cos. out of the business - all it did was sideline some production temporarily - rigs were back up and running with the increase in barrel prices. They're about 30 years late to the game to modernize their economy and make it less dependent on oil. They're feeling the pressure to diversify or face real challenges to the rule of the House of Saud. Everyone, including the Chinese, are finding ways around the unreliable nature of Mid East oil. If we can get better price support for LNG, then fracking also has the ability to challenge Russian NG dominance in Europe, as well. That being said, the Saudis' cost to produce is under $10 a barrel. They can weather lower prices for a long time, but you're already seeing the strain on their economy from it, hence the "rapid" (rapid by Middle East standards) move to diversify. They're blowing through their sovereign wealth fund to prop up price controls and handouts that have kept the population appeased for decades.
However, some of this is just good ol' family rivalry.
OPEC and the Saudis in particular did this to themselves with regards to fracking. They made oil expensive enough for unconventional techniques to be profitable, once the genie was out of the bottle there was no putting it back in. Smart people who work in the oil industry, like smart people in any industry, figured out how to make fracking and horizontal drilling work better, and cheaper. No turning back.
I eagerly await the day the House of Saud is nothing more than a memory and some bleached remains in the Arabian desert. They are well on their way, I hope they only accelerate their own demise.
sundance435
11-05-17, 20:12
I saw a thing once that said if gas prices get above $3.00 a gal. fracking companies can't compete with regular oil companies. So a lot or most fracking sites are idled.
I kind of remember fracking really taking off in places like N. Dakota's Bakken area, then all the sudden gas prices dropped to their lowest prices in a decade or so then remaining that way. I'm no SME in the oil industry, but if the threat of fracking keeps gas/oil prices down, sounds good to me.
NYH1.
I'm assuming you meant below $3.00, but with the pace of technological advances in fracking technology, many of the bigger fracking companies, which, as SilverBullet pointed out, are companies like Schlumberger selling to oil companies, can compete with oil between $35-$40 a barrel, which roughly equates to gas around $2.10-$2.25. Oil right now is above $50/barrel and has been staying pretty constant. West Texas Intermediate is the grade generally used for fracked oil, whereas Brent Crude (North Sea) is the international benchmark, though grades vary by where they're produced.
The problem the Saudis are having is that even though it costs them $10/barrel to extract, their entire budget and economy are based on $50+/barrel for sustainment.
Averageman
11-05-17, 20:14
Follow the Money.
If these guys got caught skimming, they likely were, but the other reason might be they get to divvy up the guilty parties estate.
Hard times make for some hard lives.
sundance435
11-05-17, 20:45
I eagerly await the day the House of Saud is nothing more than a memory and some bleached remains in the Arabian desert. They are well on their way, I hope they only accelerate their own demise.
I'm definitely not a fan of the Saudi regime, but we've seen numerous times now that the alternative usually isn't any better over there for anyone.
Coal Dragger
11-06-17, 04:27
I'm definitely not a fan of the Saudi regime, but we've seen numerous times now that the alternative usually isn't any better over there for anyone.
I said that understanding that the individuals who fill that power vacuum would probably be undesirable. From a standpoint of hurting terrorism though, I suspect that the bankruptcy of Saudi Arabia to the point they devour themselves would be a good thing. They’re responsible for funding a lot of terrorist organizations via wealthy Saudis who have used Hawala to fund groups they sympathize with. I want those individuals to be financially ruined, and then die painfully. If they could be killed by the “have nots” of Saudi Society when the social welfare petroleum state collapses that is just fine with me.
I hate to be on the same side of something as the Iranians, but I can understand the contempt the Persians hold for their Arab neighbors. Of course the fall of Saudi Arabia would make Iran an even larger problem in the region, or accelerate their inevitable seizure of regional dominance. Eventually they’ll achieve regional dominance, the Persians have a long history of keeping the fractious Arab tribes/kingdoms under their boot. No reasonable student of history believes they won’t succeed again.
This has nothing to do with reducing corruption and all about power/corruption consolidation in the hands of the new heir apparent. It started early summer'ish, and this is just cleanup by AbS (The now favored son).
You do business in Saudi, it goes through a member of the royal family, and they profitith mightily. That corruption will never go away as long as Saudi is run as a tribal fiefdom.
It also has to do with moving control of the National Guard apparently.
sundance435
11-06-17, 10:29
Right, corruption isn't going away, they're just consolidating so that their sect of the family benefits the most. Their National Guard is completely separate from the regular military - basically an independent military force completely under the control of the King and Crown Prince that guarantees their control.
Supposedly a Saudi prince also died in a helicopter accident this past weekend.
http://www.bbc.com/news/world-middle-east-41881058
Sounds more like a purge of sorts. Par for the course though. One tribe whacking the other.
One can only pray that the oil in that area dries up ASAFP and the world can go back to ignoring that section.
I'm assuming you meant below $3.00, but with the pace of technological advances in fracking technology, many of the bigger fracking companies, which, as SilverBullet pointed out, are companies like Schlumberger selling to oil companies, can compete with oil between $35-$40 a barrel, which roughly equates to gas around $2.10-$2.25. Oil right now is above $50/barrel and has been staying pretty constant. West Texas Intermediate is the grade generally used for fracked oil, whereas Brent Crude (North Sea) is the international benchmark, though grades vary by where they're produced.
The problem the Saudis are having is that even though it costs them $10/barrel to extract, their entire budget and economy are based on $50+/barrel for sustainment.
No, the program I saw said once gas prices get above the $3.00 gal price range it's not worth it to use the fracking method to produce oil. It's more cost effective to use the normal drilling method and such.
Like I said, I'm no expert on the oil/gas industry. The main thing I know is the cheaper the better! ;)
NYH1.
The Bush and Clinton crime families as well as Obama were tight with the Saud. Muslim $$$$ own most of our politicians.
http://www.cnn.com/2017/11/05/middleeast/saudi-arabia-anti-corruption-list/index.html
Intresting that the main driver for going after corruption is lower oil prices. Any why do we have lower oil prices? Fracking. It would be funny if Fracking is what leads to a moderation and end to Saudi extremism and sponsored terrorism.
That or new tyrants often use reform as a way to consolidate power.
Makes me wonder if the ones doing the purging are the anti-terrorists or their sponsors.
Whiskey_Bravo
11-06-17, 14:28
No, the program I saw said once gas prices get above the $3.00 gal price range it's not worth it to use the fracking method to produce oil. It's more cost effective to use the normal drilling method and such.
Like I said, I'm no expert on the oil/gas industry. The main thing I know is the cheaper the better! ;)
NYH1.
Fracking cost more than conventional drilling, so it would only make sense that the higher oil went(thus fuel prices rise) the more profitable fracking would be.
sundance435
11-06-17, 14:46
Makes me wonder if the ones doing the purging are the anti-terrorists or their sponsors.
In Saudi, one never knows. I think the fact that Saudi was trying so hard to kill the bill that would allow victims of terrorism to sue the Kingdom is pretty telling. My opinion is that the official 9/11 report is basically what happened, but much like any connection about what the CIA knew of Oswald, people at the highest levels of government didn't want any light shed on Saudi complicity for geopolitical reasons. The Saudis do as little to combat terrorism as they can get away with to keep the U.S. off their backs. You have to have some understanding of the intricate power dynamic that exists between Wahabist radicals and the Royal Family to even try to understand Saudi Arabia.
And, yeah, there is no price ceiling for fracking operations, just a break even point at the low end near which they'll idle rigs.
Makes me wonder if the ones doing the purging are the anti-terrorists or their sponsors.
I wasn’t aware that there was a side in Saudi that didn’t have links to the Wassabi guys.
I wasn’t aware that there was a side in Saudi that didn’t have links to the Wassabi guys.Good point. I'm being naive, optimistic, or both.
Sent from my G8341 using Tapatalk
Fracking cost more than conventional drilling, so it would only make sense that the higher oil went(thus fuel prices rise) the more profitable fracking would be.
That's the way they explained it.
NYH1.
SilverBullet432
11-06-17, 16:32
Fracking cost more than conventional drilling, so it would only make sense that the higher oil went(thus fuel prices rise) the more profitable fracking would be.
That's the way they explained it.
NYH1.
Some Companies won’t spend the money on a $6MM well. They will gobble up acres and drill several vertical wells that produce maybe 100-500 BOPD each. The problem with that is; now you have multiple wells that = multiple downhole failures to repair + maintenance costs per well. When you can drill one horizontal that will produce more than your singles combined, but at a higher initial cost.
Silv, I'm just explaining it the way they told it. It was more a story about the oil boom in the N. Dakota Bakken area. How and way the boom happened, then how it slowed once oil prices came back down.
NYH1.
SilverBullet432
11-06-17, 17:18
Silv, I'm just explaining it the way they told it. It was more a story about the oil boom in the N. Dakota Bakken area. How and way the boom happened, then how it slowed once oil prices came back down.
NYH1.
Yeah I know, I just like blabbing about the subject :p
F the Bakken, permian is where it’s always been. Even the Eagle Ford and Marcellus are dropping off.
Yeah I know, I just like blabbing about the subject :p
F the Bakken, permian is where it’s always been. Even the Eagle Ford and Marcellus are dropping off.
Ju got it mang! ;)
NYH1.
wilson1911
11-07-17, 11:26
When you have basically 1 country controlling the price of oil thru opec. They can choose to make a profit or well.....not to. Fracing is not going anywhere, it's here to stay.
Silver, I assume your in the PB working. Although it pays better, I have refrained from working in it. We just got a Shell contract and I declined to go. Stage price was not worth it to me. Our salesman thinks he is a real winner.:big_boss: Giving work away on the cheap does me no good.
The price of oil still needs to go up so I can make more $$$$. The Devon I'm on now pays crap.
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