Saudi Arabia could go bankrupt within five years - IMF

[norfolkandchance]

Camel racing was a good day out. The owners of the camels used to tie small kids on and away they went for 5 km.End of the race kids where untied and then tied on for the next race..You don't go to KSA for the culture, just the money

[ExpatOilWorker]

At +1,000 m they are also building the world tallest building The Kingdom Tower. They are not going bankrupt anytime soon.

[dhream]

Yeap, Sow-Dee !

This on the other hand would be good news....................

Back to the desert, tents and goat herding while keeping the stove running on Camel dung.

But then, I am sure the imbecile Europeans will bail them out.

With what? Drachmas?

[dhream]

Saudi Arabia Could Go Bankrupt Within Five Years - IMF

Who would fund ISIS then.........................

I think you'll find IS and the Saudi Royals, don't quite get along.

http://www.ft.com/cms/s/0/8bba2ab4-2b00-11e5-8613-e7aedbb7bdb7.html#axzz3prD9QlC4

However, muslim media have found 92% of the Saudi rabble support IS style of governance and jihad!

Bankruptcy may be the least of their worries.

If WE had any smarts, we'd step aside and let the asrehats get on with it!

Then go in (as a coalition of the west, China & Russia) mop up, and divide it all between the big five global players and govern it EU style from Jerusalem.

I am moderate in all my ideas except that militant islam and fundamentalist Arab nations should be destroyed, utterly.

[dhream]

If oil prices stay low and the Saudi's run into financial problems, then I would guess that so would much of the Arab world, so the Hajj would be a very different event. Not a lot of wealthy people spending money.

Many of the non-Arab Muslim countries are relatively poor.

Do not worry the American Tax Payer will bail them out

Saudi Arabia to Big to Fail

to paraphrase 'the bern'

Any entity that's 'too big to fail', is too big to exist.

I think that's one of the most sage comments made by a US politician since Eisenhower.

[gandalf12]

i cant say I would be sorry to see that happen. Though, America can not and will not let that happen. The fear of a radical Islamist government controlling all that oil would ensure this.

Don't be silly. The U.S. is pining for the day when it can disengage from oil sheikhdoms entirely.

I am not so sure there is all the oil that people think there is. Most of the production now is with secondary injection and that is not a good sign

[Thorgal]

They also have substantial phosphate deposits, bauxite and gold.

They are developing manufacturing, education (some very large universities) and have substantial overseas investments.

In 5 years, the world could be as different as it was 5 years ago - and nobody can predict much, especially IMF given their track record.

Arab universities are not competitive internationally.

You don't need any university degrees to be a Saudi sponsor.

Only the Iqama holder should have a decent university degree...

[Steely Dan]

The Saudi Monarchy are waking up to a new reality post oil and they are about to align with Israel of all nations due to mutual enmity with Iran. I suspect any Malthusian predictions as to Saudi Arabian oil may prove premature and wishful thinking.

http://awdnews.com/top-news/saudi-prince-al-waleed-bin-talal-in-case-of-outbreak-of-palestinian-uprising-i-ll-side-with-israel,-saudi-arabia-has-reached-a-political-maturity-to-constitute-a-durable-alliance-with-the-jewish-nation-to-lay-the-ground-for-a-peaceful-and-prosperous-middl

[Lampang2]

Soft landing.

From insanely rich to rich.

[Pinot]

It's an oil war, people. Fracking of shale in the USA has changed America from an oil importer to an exporter.

The Saudi cost of production is less than $10 a barrel, and well depletion rates are low. The American cost of production is $40-$50 a barrel, and well depletion rates are high.

The Saudis are hoping to bankrupt American producers by overproduction, driving the price down to levels where US wells lose money. US wells are heavily indebted, so they are hoping the flow of fiat money at very low interest rates will continue.

Who will blink first? Good question. My money would be on the Saudis, not because I particularly like them, but because the only asset America has now is the acceptance of the greenback as the world reserve currency. There's only so much money a country can print before the rest of the world starts calling debt in.

Nonsense. The only asset America has? The American $ is stronger today than ever. The American economy is unmatched in the rest of the world.

This is Republican double speak for lowering the debt through austerity measures, which consistently has been shown to be a disaster everywhere else.

First of all the Saudi depletion rates have NEVER declined because the figures are supplied by the Saudis. They are probably passed peak oil levels but no one knows.

What do you think will become the world reserve currency? Swiss franc? It's a specious argument that doesn't hold water.

[ToS2014]

and you think there is an Islamic extremist terrorism problem today?

[Chicog]

Saudi Arabia's 'game of thrones' could derail global oil markets

[spidermike007]

Since the Saudis have spent over $100 billion in the past 20 years or so, financing terror, I doubt many would mourn their demise. They continue to do so today. Their support for extremist causes is unabated. Their lack to real and useful charity has been astonishing.

[ExpatOilWorker]

It's all very interesting and also worrying, speaking as someone who is employed in the oil industry. A lot of countries around the world are severely scaling back spending on maintenence and exploration activities which is only going to lower capacity in a few years. Petrobras the Brazilian state oil producer has announced $11bn extra cuts to its budget but they are also trying to deal with massive corruption.

The Saudi's on the other hand are taking advantage of the global downturn to recruit oil workers and are actively tendering for 30 more offshore vessels. With half of the world's offshore fleet laid up with no work then the Saudi's are going to get them cheap.

When the worlds existing oil capacity starts to dry up then the Saudi's will be in pole position to take advantage of any surge that a global recovery may demand.

Peak oil was a hot topic back in 2008 when oil was shooting toward $147 a barrel, but reality is that we keep finding more oil and develop technologies that will extend production from existing fields.

Most OECD countries are also slowly reducing their oil demand. The stone age didn't end because we ran out of stones and Saudi could one day be sitting with a lot of idle production capacity one day.

[Lampang2]

It's all very interesting and also worrying, speaking as someone who is employed in the oil industry. A lot of countries around the world are severely scaling back spending on maintenence and exploration activities which is only going to lower capacity in a few years. Petrobras the Brazilian state oil producer has announced $11bn extra cuts to its budget but they are also trying to deal with massive corruption.

The Saudi's on the other hand are taking advantage of the global downturn to recruit oil workers and are actively tendering for 30 more offshore vessels. With half of the world's offshore fleet laid up with no work then the Saudi's are going to get them cheap.

When the worlds existing oil capacity starts to dry up then the Saudi's will be in pole position to take advantage of any surge that a global recovery may demand.

Peak oil was a hot topic back in 2008 when oil was shooting toward $147 a barrel, but reality is that we keep finding more oil and develop technologies that will extend production from existing fields.

Most OECD countries are also slowly reducing their oil demand. The stone age didn't end because we ran out of stones and Saudi could one day be sitting with a lot of idle production capacity one day.

Norway is downsizing.

Price to low, also peak oil passed.

Riggs, boats and people taken out of circulation.

[Prbkk]

Oman started planning for this eventuality about 25 years ago while the Saudis believed it could never happen. Oman never participated in the foreign labour system and has invested heavily in education and "omanization of the workforce".

[ExpatOilWorker]

It's all very interesting and also worrying, speaking as someone who is employed in the oil industry. A lot of countries around the world are severely scaling back spending on maintenence and exploration activities which is only going to lower capacity in a few years. Petrobras the Brazilian state oil producer has announced $11bn extra cuts to its budget but they are also trying to deal with massive corruption.

The Saudi's on the other hand are taking advantage of the global downturn to recruit oil workers and are actively tendering for 30 more offshore vessels. With half of the world's offshore fleet laid up with no work then the Saudi's are going to get them cheap.

When the worlds existing oil capacity starts to dry up then the Saudi's will be in pole position to take advantage of any surge that a global recovery may demand.

Peak oil was a hot topic back in 2008 when oil was shooting toward $147 a barrel, but reality is that we keep finding more oil and develop technologies that will extend production from existing fields.

Most OECD countries are also slowly reducing their oil demand. The stone age didn't end because we ran out of stones and Saudi could one day be sitting with a lot of idle production capacity one day.

Norway is downsizing.

Price to low, also peak oil passed.

Riggs, boats and people taken out of circulation.

The North Sea peaked around 2005, but plenty of other countries are still increasing their production.

Proved oil reserves are still increasing:

1994 = 1118.0 Billion bbls

2004 = 1366.2 Billion bbls

2014 = 1700.1 Billion bbls

I am sad to say that cheap ($50) oil is here to stay.

Edited October 31, 2015 by ExpatOilWorker

[Naam]

Oman started planning for this eventuality about 25 years ago while the Saudis believed it could never happen. Oman never participated in the foreign labour system and has invested heavily in education and "omanization of the workforce".

yada yada...

Some 1,400,000 (39% of entire population) expatriates live in Oman, most of whom are workers from India, Pakistan, Bangladesh, Morocco, Jordan, and the Philippines.

The issue of foreign labor in Saudi Arabia is now one that touches all corners of the globe. Since 30% of Saudi Arabia's population of 27.3 million are immigrants from other countries, changes in Saudi labor laws affect not only the workers but their families around the world.

[Naam]

Since the Saudis have spent over $100 billion in the past 20 years or so, financing terror, I doubt many would mourn their demise. They continue to do so today. Their support for extremist causes is unabated. Their lack to real and useful charity has been astonishing.

may i assume you talked to the accountant who keeps the books about Saudi terror financing?

[spidermike007]

Since the Saudis have spent over $100 billion in the past 20 years or so, financing terror, I doubt many would mourn their demise. They continue to do so today. Their support for extremist causes is unabated. Their lack to real and useful charity has been astonishing.

may i assume you talked to the accountant who keeps the books about Saudi terror financing?

Not my information. Quoted from a reliable source. Essential reading for anybody who cares to know who these people really are. To describe the Saudis as wolves in sheeps clothing would be the understatement of the century.

http://www.worldaffairsjournal.org/article/saudi-connection-wahhabism-and-global-jihad

[Naam]

Since the Saudis have spent over $100 billion in the past 20 years or so, financing terror, I doubt many would mourn their demise. They continue to do so today. Their support for extremist causes is unabated. Their lack to real and useful charity has been astonishing.

may i assume you talked to the accountant who keeps the books about Saudi terror financing?

Not my information. Quoted from a reliable source. Essential reading for anybody who cares to know who these people really are. To describe the Saudis as wolves in sheeps clothing would be the understatement of the century.

http://www.worldaffairsjournal.org/article/saudi-connection-wahhabism-and-global-jihad

a single person's opinion = reliable source? where's the beef his evidence? the accountat i mentioned?

[spidermike007]

Since the Saudis have spent over $100 billion in the past 20 years or so, financing terror, I doubt many would mourn their demise. They continue to do so today. Their support for extremist causes is unabated. Their lack to real and useful charity has been astonishing.

may i assume you talked to the accountant who keeps the books about Saudi terror financing?

Not my information. Quoted from a reliable source. Essential reading for anybody who cares to know who these people really are. To describe the Saudis as wolves in sheeps clothing would be the understatement of the century.

http://www.worldaffairsjournal.org/article/saudi-connection-wahhabism-and-global-jihad

a single person's opinion = reliable source? where's the beef his evidence? the accountat i mentioned?

There are countless sources to support this theory of Saudi support for worldwide terror. Here is another one:

But Saudi funding to globally spread their Sunni radical version of Islam-Wahhabism–began in earnest in 1962 with the establishment of the Muslim World League (MWL), which expanded into at least to one hundred branches in more than thirty countries, and served as the main body for other international Saudi charities. Since then, the Kingdom’s charities have been estimated to spend between $1.5 and $2 trillion to build many thousand of mosques, madrassas and Islamic centers equipped with Saudi books and Imams, preaching the Wahhabi doctrine.

http://www.ruthfullyyours.com/2013/02/03/saudi-arabias-efforts-to-expand-radical-islam-and-support-terrorism-by-rachel-ehrenfeld/

One more quote from that article:

While the Saudis’ new counterterrorist financing and new financial monitoring regulations looked good on paper, Mrs. Clinton’s leaked cable noted that “Donors in Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide.”[27] Her cable also stated it an “ongoing challenge to persuade Saudi officials to treat terrorist financing emanating from Saudi Arabia as a strategic priority.”

Edited November 1, 2015 by spidermike007

[marcosss]

Since the Saudis have spent over $100 billion in the past 20 years or so, financing terror, I doubt many would mourn their demise. They continue to do so today. Their support for extremist causes is unabated. Their lack to real and useful charity has been astonishing.

may i assume you talked to the accountant who keeps the books about Saudi terror financing?

Not my information. Quoted from a reliable source. Essential reading for anybody who cares to know who these people really are. To describe the Saudis as wolves in sheeps clothing would be the understatement of the century.



http://www.worldaffairsjournal.org/article/saudi-connection-wahhabism-and-global-jihad

a single person's opinion = reliable source? where's the beef his evidence? the accountat i mentioned?

There are countless sources to support this theory of Saudi support for worldwide terror. Here is another one:

But Saudi funding to globally spread their Sunni radical version of Islam-Wahhabism–began in earnest in 1962 with the establishment of the Muslim World League (MWL), which expanded into at least to one hundred branches in more than thirty countries, and served as the main body for other international Saudi charities. Since then, the Kingdom’s charities have been estimated to spend between $1.5 and $2 trillion to build many thousand of mosques, madrassas and Islamic centers equipped with Saudi books and Imams, preaching the Wahhabi doctrine.

http://www.ruthfullyyours.com/2013/02/03/saudi-arabias-efforts-to-expand-radical-islam-and-support-terrorism-by-rachel-ehrenfeld/

One more quote from that article:

While the Saudis’ new counterterrorist financing and new financial monitoring regulations looked good on paper, Mrs. Clinton’s leaked cable noted that “Donors in Saudi Arabia constitute the most significant source of funding to Sunni terrorist groups worldwide.”[27] Her cable also stated it an “ongoing challenge to persuade Saudi officials to treat terrorist financing emanating from Saudi Arabia as a strategic priority.”

Most of what I've looked at & read mirrors everything that spidermike007 has written in the attached post.
If you place your trust in the mainstream press in order to form an opinion, you are destined to make a flawed assessment of what is the truth. Just like a silly statement made on another thread, claiming that the USA is run by Muslims. A preposterous claim, based on right wing propaganda. Yet someone honestly believes it as fact.

[Naam]

There are countless sources to support this theory of Saudi support for worldwide terror. Here is another one:

But Saudi funding to globally spread their Sunni radical version of Islam-Wahhabism–began in earnest in 1962 with the establishment of the Muslim World League (MWL), which expanded into at least to one hundred branches in more than thirty countries, and served as the main body for other international Saudi charities. Since then, the Kingdom’s charities have been estimated to spend between $1.5 and $2 trillion to build many thousand of mosques, madrassas and Islamic centers equipped with Saudi books and Imams, preaching the Wahhabi doctrine.

where does it mention that building mosques, religious schools and spreading Wahhabism means terror financing? gimme a break man!

[Naam]

Mrs. Clinton’s leaked cable noted that...

[Prbkk]

Oman started planning for this eventuality about 25 years ago while the Saudis believed it could never happen. Oman never participated in the foreign labour system and has invested heavily in education and "omanization of the workforce".

yada yada...

Some 1,400,000 (39% of entire population) expatriates live in Oman, most of whom are workers from India, Pakistan, Bangladesh, Morocco, Jordan, and the Philippines.

The issue of foreign labor in Saudi Arabia is now one that touches all corners of the globe. Since 30% of Saudi Arabia's population of 27.3 million are immigrants from other countries, changes in Saudi labor laws affect not only the workers but their families around the world.

That relates to unskilled labour. My reference was meant to be for skilled professions

[anotheruser]

But oil prices will peak up again to $100 or more within less than 5 years, perhaps just 1-2 years.

Unfortunately I think you are right. The price of oil was manipulated and brought down primarily to harm the Russian economy but this will not go on forever. I would love to see the Saudis go broke but don't think it will happen.

It has nothing to do with the USA being a bigger producer of oil than KSA?

[geriatrickid]

Saudi Arabia Could Go Bankrupt Within Five Years - IMF

Who would fund ISIS then.........................

The same people doing it now; Qataris, Kuwaitis, and the Turks purchasing oil from ISIS,

[Naam]

Saudi Arabia Could Go Bankrupt Within Five Years - IMF

Who would fund ISIS then.........................

The same people doing it now; Qataris, Kuwaitis, and the Turks purchasing oil from ISIS,

Qatar buying oil from IS = missed Middle East geography lessons

[thaibeachlovers]

They also have substantial phosphate deposits, bauxite and gold.

They are developing manufacturing, education (some very large universities) and have substantial overseas investments.

In 5 years, the world could be as different as it was 5 years ago - and nobody can predict much, especially IMF given their track record.

The money would be only for the royals and the religious elite. The rest could go back to living in tents for all the rulers care, IMO.

Yes they have big universities, but they all want to be managers in my experience- no Saudi wants to be a real worker- that's for people from other countries to do.

My hope is that a cheap, effective alternative energy source becomes available, so the Saudis really do become bankrupt.