Saudi Prince: $100-a-barrel oil 'never' again

[themack89]

What a boss.

http://www.usatoday.com/story/money/...rrel/21484911/

Saudi prince: $100-a-barrel oil 'never' again
Maria Bartiromo for USA TODAY 7:49 p.m. EST January 11, 2015

Saudi billionaire businessman Prince Alwaleed bin Talal told me we will not see $100-a-barrel oil again. The plunge in oil prices has been one of the biggest stories of the year. And while cheap gasoline is good for consumers, the negative impact of a 50% decline in oil has been wide and deep, especially for major oil producers such as Saudi Arabia and Russia. Even oil-producing Texas has felt a hit. The astute investor and prince of the Saudi royal family spoke to me exclusively last week as prices spiraled below $50 a barrel. He also predicted the move would dampen what has been one of the big U.S. growth stories: the shale revolution.

[...]

Q: Can you explain Saudi Arabia's strategy in terms of not cutting oil production?

A: Saudi Arabia and all of the countries were caught off guard. No one anticipated it was going to happen. Anyone who says they anticipated this 50% drop (in price) is not saying the truth.

Because the minister of oil in Saudi Arabia just in July publicly said $100 is a good price for consumers and producers. And less than six months later, the price of oil collapses 50%.

Having said that, the decision to not reduce production was prudent, smart and shrewd. Because had Saudi Arabia cut its production by 1 or 2 million barrels, that 1 or 2 million would have been produced by others. Which means Saudi Arabia would have had two negatives, less oil produced, and lower prices. So, at least you got slammed and slapped on the face from one angle, which is the reduction of the price of oil, but not the reduction of production.

ctd...

As a [former] economics nerd, this is game theory at its finest:

Frankly speaking, to get all OPEC countries to approve and accept [a production cut], including Russia and Iran, and everybody else, is almost impossible You can never have an agreement whereby everybody cuts production. We can't trust all OPEC countries. And can't trust the non-OPEC countries.

[freshprince1]

A slow climb back up to $70-$80 would be nice (then my clients would start spending money again!). I was at a Canadian Heavy Oil Association luncheon last week and the VP from IHS Energy went into it in detail. Their expectations are that we should see oil steady out and balance near 60 by the end of of 2015.

But he did go out of his way to day that we are in uncharted waters here with OPEC refusing to "play ball". So while he did have his predictions, he did say anything could happen because we are operating without the same measuring stick we've had for the last 25 years (or so).

[ExtraSlow]

Hopefully these recent episodes will teach the market how little influence the Saudis really have. They also don't have any additional insight compared to the vast majority of oil CEO's worldwide.

Frankly, I'd rather hear that Exxon's CEO has to say compared to some asshole prince.

[themack89]

Lol... It still boggles my mind why everyone cries against Saudi when its the USA who has caused most of the supply side pressures. Saudi production has been relatively constant for a while now.

[Cos]

.

[max_boost]

Is everyone scared or something.

[Stephen81]

Originally posted by themack89
What a boss.

Isn't this the guy Selena Gomez has been spotted with?

[riander5]

Originally posted by Cos
I think they are just trying to 'scare' the market into shutting in supply. If successful in convincing people of this, prices would go up and the Saudi's wouldn't slow production. Ultimate win for them.

Will it skyrocket back to $110 a barrel? No but I think he is playing a bigger game here and trying to prove a point to the newer projects. Unfortunately this could hurt some of the larger SAGD or expensive projects that would only really make sense at $80BBD +

Future oil sands projects might be on hold, operating ones are still cash cows !!

[SkiBum5.0]

Originally posted by riander5



Future oil sands projects might be on hold, operating ones are still cash cows !!

I wouldn't call them cash cows. They are just sunk costs. Projects will continue where the money has already been invested.

[Cos]

.

[Xtrema]

Originally posted by riander5



Future oil sands projects might be on hold, operating ones are still cash cows !!

Yeah, no cost pressure at all...
http://www.fortmcmurraytoday.com/201...tions-by-march

Cenovus is paying $100K for someone to do AP and random accounting crap that the same job will fetch no more than $50K in Calgary. That shit will end soon.

[HiTempguy1]

Originally posted by Xtrema


Yeah, no cost pressure at all...
http://www.fortmcmurraytoday.com/201...tions-by-march

Cenovus is paying $100K for someone to do AP and random accounting crap that the same job will fetch no more than $50K in Calgary. That shit will end soon.

Or random journeyman anything trades that earn $150k/year with only 4 years of experience will also stop.

I don't have any problem with people earning good money. I do have a bit of a problem with people who earn obscene money and their talent is not worth it (there are some tradesmen that are worth their weight in gold).

[themack89]

Originally posted by HiTempguy1
I do have a bit of a problem with people who earn obscene money and their talent is not worth it

Well somebody's jealous.

[max_boost]

lol the market dictates what you get. no need to have a problem with what other's make. i mean you are more than welcome to go do the same thing! haha

[CompletelyNumb]

Indeed. I watch movies WHILE drilling. That's multitasking. I earn my keep.

[ZenOps]

Well at least he diversified beyond oil. Unlike all in one egg basket case Harper Canada.

[HiTempguy1]

Originally posted by themack89


Well somebody's jealous.

Haha, not at all. I applaud anyone who goes and works up north. I just hate the fact that someone with 0 talent and no experience basically earns the same as someone with 15 years of experience up there in a trade. As long as you are a jman, the typical trade position for a specific ticket pays the same.

Not only does that hurt the guy with 15 years of experience, it unrealistically raises the price of ANYTHING your average joe buys... because at the end of the day, these are average joes riding the gravy train. So unless you play ball and go up there as well, people bring this crazy amount of money back and raise the price on everything because they can afford to pay it.

I'm just mainly bitching is all

[themack89]

Originally posted by HiTempguy1


Haha, not at all. I applaud anyone who goes and works up north. I just hate the fact that someone with 0 talent and no experience basically earns the same as someone with 15 years of experience up there in a trade. As long as you are a jman, the typical trade position for a specific ticket pays the same.

Not only does that hurt the guy with 15 years of experience, it unrealistically raises the price of ANYTHING your average joe buys... because at the end of the day, these are average joes riding the gravy train. So unless you play ball and go up there as well, people bring this crazy amount of money back and raise the price on everything because they can afford to pay it.

I'm just mainly bitching is all

Ah, well... Welcome to free markets I guess.

It's also the same system that affords most people the [relatively] comfortable lives they have. Dare I say.... Such as yourself?

[BMDUBS]

I would love to see examples of these $150k journeyman tradesmen.

Unless you're a company owner I do not believe any trades guy working for someone else is making $150k. $80k-$90k yes, $150k no.

[Ntense_SpecV]

Originally posted by BMDUBS
I would love to see examples of these $150k journeyman tradesmen.

Unless you're a company owner I do not believe any trades guy working for someone else is making $150k. $80k-$90k yes, $150k no.

You're kidding right? Lol




In fact some of them make even more, a lot more.