Alwaleed warns of US shale danger to Saudi Arabian economy. ;)

  • musclmed

    Posts: 3284

    Jul 30, 2013 7:43 AM GMT
    awe, i feel so bad for them.

    http://www.ft.com/cms/s/0/1b6753ce-f86f-11e2-92f0-00144feabdc0.html#ixzz2aVpvE1TP

    Prince Alwaleed bin Talal, the billionaire Saudi Arabian investor, has warned that his country’s oil-dependent economy is increasingly vulnerable to competition from the US shale revolution, setting him at odds with his country’s oil ministry and Opec officials.

    In an open letter addressed to Ali Naimi, the Saudi oil minister, the prince called on the government to accelerate plans to diversify the economy.



    “Our country is facing continuous threat because of its almost total dependency on oil,” he wrote in the letter, copied to King Abdullah, Prince Alwaleed’s uncle, among others.

    The letter, which was accompanied by several others addressed to officials including the finance minister, was posted to Prince Alwaleed’s Twitter account on Sunday. The letters were dated May 13 and a spokesperson for the prince confirmed they were genuine.

    The Saudi oil ministry declined to comment on the letter. Saudi Arabia is the world’s largest crude oil exporter, earning $336bn from petroleum exports last year, according to data from Opec, the oil producers’ cartel.

    Oil revenues account for 92 per cent of the state budget, according to Prince Alwaleed, and accounted for almost 90 per cent of the country’s export revenues according to Opec.

    Opec officials have sought to play down the threat posed to the kingdom from surging North American oil production, which saw US imports from Opec members tumble to a 15-year low last year.

    Despite falling US imports, the cartel saw a record windfall of $1.26tn from petroleum exports last year, according to data published by the organisation today. But the International Energy Agency forecasts demand for crude Opec to fall sharply over the next five years

    “The world is increasingly less dependent on oil from Opec countries including the kingdom,” Prince Alwaleed wrote.

    Speaking in Washington in April, Mr Naimi, who has been the country’s oil minister for almost 20 years, welcomed increased American output as a stabilising influence on global oil prices.

    He also pointed out that Saudi crude exports to the US actually increased in 2012. That is largely because US refiners have not been able to replace the kingdom’s heavy and sour crude oil.

    But Prince Alwaleed rejected Mr Naimi’s assessment, although he focused on rising US gas output rather than the country’s crude oil production, which saw its single largest annual increase ever last year.

    “We disagree with your excellency on what you said and we see that raising North American shale gas production is an inevitable threat,” Prince Alwaleed said.

    Prince Alwaleed has long been a maverick figure in the Saudi monarchy, frequently taking positions that differ from official policy. Although he is the king’s nephew, few analysts count him among the most influential figure in the ruling family.

    But public disagreements among the Saudi royal family are rare, although the prince is no stranger to controversy. Earlier this year he publicly attacked Forbes magazine for underestimating his personal fortune.
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    Jul 30, 2013 9:36 AM GMT
    Once Saudi goes poor , terrorism funding would cease , & we can live a normal live
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    Jul 30, 2013 10:29 AM GMT
    It would be a miracle if our own government allows us to access and enjoy this "revolution".
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    Jul 30, 2013 3:05 PM GMT
    I'm finding difficulty having any sympathy for the Saudi Arabians.
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    Jul 30, 2013 4:54 PM GMT
    It will be good for the US if it manages to achieve energy self-sufficiency. It will result in better energy security for the US and less meddling by that country in the Middle East, as well as a bit more competition for OPEC. I doubt, however, that Saudi Arabia will suffer any heavy economic pressure from this, as demand for Saudi oil from China, India and others will probably take up any significant slack created by increased US production.

    It is also worth remembering that, mostly due to reasons of basic geology, a barrel of Saudi oil costs $6-$28 to produce, versus $32-$82 for a barrel of fracked US oil and $52-$113 for a barrel of US shale oil.
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    Jul 30, 2013 9:26 PM GMT
    So we should pay them to keep their fanaticism to a minimum?
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    Jul 31, 2013 12:23 AM GMT
    Sure be glad to see the day when we don't have to buy one penny of oil from the Saudis.

    http://www.dailymail.co.uk/news/article-2381309/Editor-jailed-seven-years-sentenced-600-LASHES-starting-Free-Saudi-Liberals-website.html
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    Jul 31, 2013 1:56 AM GMT
    failscarf said
    Blakes7 saidSo we should pay them to keep their fanaticism to a minimum?


    There are innocent people in every country so Im open to other ideas.


    That's like tolerating a bully because sometimes he leaves you alone.
  • Apparition

    Posts: 3534

    Jul 31, 2013 4:52 AM GMT
    i cant wait till they put a date at which time they are going to BAN oil, so as to force everyone to make economic alternatives now, rather than when they are forced to and it is a "shock" that finite resources ran out.

    better to get used to not using oil now, and being late doing so when there still is some oil, than having to run out and then go OMG OMG what can we do?

    same thing with trees...should put a future limit on "only trees you planted can be harvested" at some date.