Saudi Arabia could go bankrupt within five years - IMF

[konying]

If Iran and Russia has any say it in, it might be faster than 5 years

[NeverSure]

I remember 1973 when OPEC deliberately cut back on oil production. Prices skyrocketed and there were long lines at gas pumps. The lines were so bad that the US went to a system where odd numbered license plate cars could buy gas on odd numbered days, and even on even days.

Now Russia has discovered substantial amounts of oil and the US has become not only oil independent but energy independent. This after being told for decades that the world was about to run out of oil.

Saudi no longer has any clout because if they cut back production to drive prices up, the higher prices will spur Russia and the US to produce more. It is now the US that has the world's largest oil reserves.

For now there is an oil glut in the world and someone would need to explain to me why prices would go back up before I could understand how.

Cheers.

[Naam]

Sputnik News, misleading headline and a bunch of ignorants salivating

[Naam]

just deserts there

besides money galore

[oncearugge]

I remember 1973 when OPEC deliberately cut back on oil production. Prices skyrocketed and there were long lines at gas pumps. The lines were so bad that the US went to a system where odd numbered license plate cars could buy gas on odd numbered days, and even on even days.

Now Russia has discovered substantial amounts of oil and the US has become not only oil independent but energy independent. This after being told for decades that the world was about to run out of oil.

Saudi no longer has any clout because if they cut back production to drive prices up, the higher prices will spur Russia and the US to produce more. It is now the US that has the world's largest oil reserves.

For now there is an oil glut in the world and someone would need to explain to me why prices would go back up before I could understand how.

Cheers.

Have a check !

The low oil prices are driving the US "oil producers" to the wall!

[Naam]

10 years ago the oil price was $50 a barrel and the Saudi's were making a good profit. So why are they making a loss now?

they are not making a loss and nobody, except some poor envious Russian journàrselist, thinks the country will go bankrupt. read the rubbish in "Sputnik News" and judge yourself.

by the way, "poor and envious" and not to forget "ignorant" applies also to some of the commentators in this thread

[Stocky]

The reason global oil prices are around $50 is precisely because the Saudi's are busy flooding the market in an attempt to kill off production from North American oil shale. They and OPEC could put the price back above $100 just by announcing cuts in production. This IMF report is La-La Land.

[bazza40]

10 years ago the oil price was $50 a barrel and the Saudi's were making a good profit. So why are they making a loss now?

they are not making a loss and nobody, except some poor envious Russian journàrselist, thinks the country will go bankrupt. read the rubbish in "Sputnik News" and judge yourself.

by the way, "poor and envious" and not to forget "ignorant" applies also to some of the commentators in this thread

Apparently so does "up yourself"

[Suradit69]

Good time to be buying shares in companies involved in oil drilling. The price won't stay at $50 forever.

There might be some opportunities in energy, but I'd be careful of drillers. Some of them have very shaky balance sheets and their credit ratings will make borrowing or refinancing very expensive. Some have already resorted to (trying to) sell more equity and suspend dividends. Even if oil (& natural gas) reaches a more economic price, it'll be awhile longer before anyone wants to do more drilling, especially at previous day-rates and some of the drillers have aging equipment that they can't afford to upgrade/replace.

Never stayed in Saudi. They seem to be drawing negative comments from some posters who may or may not know about the people. I stayed in the UAE for ten years and really enjoyed my life there. Money and living conditions were a part of it, but I also found the people to be quite nice ... the small percentage who were actually Emirati. I guess I'd like to see some of the young people to have to get their hands dirty rather than having foreigners waiting on them hand & foot, but still wish them well. Obviously there will need to be some belt-tightening that may come as a shock to its citizens, but that was starting some years ago.

[HenryB]

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

[willyumiii]

Damn that half white, muslim, American President with no birth certificate.

He has insisted that America use more of their own oil and become less dependant on Saudi oil and the price has fallen.

See what that fool has done now??

We need another Bush who is Saudi friendly in office to correct this problem!

Remember how good life was when we had a "real American" for a President??

[Thongkorn]

This was bound to happen to a Country that relies on Oil sales alone, The world is awash with oil, Countries and public are more savvy now. They dont use the Car so much , Also cars are more Efficient now, OIl companies technology is advancing, They can drill deeper on land or sea, new chemicals are purging old wells and bringing out more oil. The world will never us as much oil as it has in the past.Plus with things changing in the Middle East more Countries are now putting oil into the oil market, becasue before they had embargoes on them. America is not taking as much oil out of this market,

Edited October 27, 2015 by Thongkorn

[chilli42]

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.

[regfrancis]

Their worried about 'peak demand' now---not -- 'peak oil'. (as in the 90')

Renewables are taking over. People detest using oil-- for many reasons. They now have a balanced view from the internet- rather than Corporate news- that was previously all they had.

The Arabs may need to crawl out of the black muck-- and into the solar panel factorys-- if the want to eat next year

[StasD]

Maybe Us will help SA as its great "democratic" friend in islamic world

[oncearugge]

Their worried about 'peak demand' now---not -- 'peak oil'. (as in the 90')

Renewables are taking over. People detest using oil-- for many reasons. They now have a balanced view from the internet- rather than Corporate news- that was previously all they had.

The Arabs may need to crawl out of the black muck-- and into the solar panel factorys-- if the want to eat next year

Solar panels ! What a wonderful idea.

Where are the "Lunar panels" which will keep the lights on ?

Another "Green" dreamer ?

[Chicog]

Their worried about 'peak demand' now---not -- 'peak oil'. (as in the 90')

Renewables are taking over. People detest using oil-- for many reasons. They now have a balanced view from the internet- rather than Corporate news- that was previously all they had.

The Arabs may need to crawl out of the black muck-- and into the solar panel factorys-- if the want to eat next year

Solar panels ! What a wonderful idea.

Where are the "Lunar panels" which will keep the lights on ?

Another "Green" dreamer ?

Not at all.

Three years ago, Saudi Arabia announced a goal of building, by 2032, 41 gigawatts of solar capacity, slightly more than the world leader, Germany, has today. According to one estimate, that would be enough to meet about 20 percent of the kingdom’s projected electricity needs—an aggressive target, given that solar today supplies virtually none of Saudi Arabia’s energy and, as of 2012, less than 1 percent of the world’s.

[oncearugge]

Their worried about 'peak demand' now---not -- 'peak oil'. (as in the 90')

Renewables are taking over. People detest using oil-- for many reasons. They now have a balanced view from the internet- rather than Corporate news- that was previously all they had.

The Arabs may need to crawl out of the black muck-- and into the solar panel factorys-- if the want to eat next year

Solar panels ! What a wonderful idea.

Where are the "Lunar panels" which will keep the lights on ?

Another "Green" dreamer ?

Not at all.

Three years ago, Saudi Arabia announced a goal of building, by 2032, 41 gigawatts of solar capacity, slightly more than the world leader, Germany, has today. According to one estimate, that would be enough to meet about 20 percent of the kingdom’s projected electricity needs—an aggressive target, given that solar today supplies virtually none of Saudi Arabia’s energy and, as of 2012, less than 1 percent of the world’s.

How is power to be supplied at night ----------------from blo*dy big batteries? Or is there 24 hour sun available in Saudi ?

Germany seems to use a lot of coal, gas and Nuk to keep the lights on and that is not counting the bought in energy !

https://en.wikipedia.org/wiki/Energy_in_Germany

Edited October 27, 2015 by oncearugge

[ericthai]

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.

The price was manipulated for a short time, but now the price is down because the USA is no longer importing oil due to the large scale fracking that is going on inside the USA.

Also APEC has not decreased their oil production to offset what the USA is now producing so their is a surplus in the market. So the oil supply is up and with the USA not needing to import the demand is less than supply simply economics.

[smotherb]

As one that worked for 4 years in the kingdom, I would be very happy to see them bankrupt, and going back to riding camels. I have no happy memories of the place, and like most that worked there, stayed only for the money.

However, the injunction on all Muslims that are able to visit Mecca during their lifetime is a huge money spinner, so I doubt they will go bankrupt.

They real reason, though not given, they are having financial problems, is that the royals, and there are thousands of them, suck much of the money for their extravagant lifestyles, and a lot is given to the religious sector to keep them pacified.

If I were to write about the lifestyle of the royals, I doubt that anyone not been there would believe me. I wouldn't believe it unless I'd been there!

Just how was it you got so well-informed on the lifestyles of the Saudi Royals?

[Chicog]

How is power to be supplied at night ----------------from blo*dy big batteries? Or is there 24 hour sun available in Saudi ?

Germany seems to use a lot of coal, gas and Nuk to keep the lights on and that is not counting the bought in energy !

https://en.wikipedia.org/wiki/Energy_in_Germany

Do you *really* need it explaining to you?

[NeverSure]

The US drillers and especially frackers are getting more and more efficient and production costs are going down. Frackers are profitable at today's prices.

Saudi and Russia depend on oil to run their economies. For the US, oil production is just a sideline. The US is more into tech and manufacturing and of course has the world's biggest and best farmland. It also has 88,000 miles of saltwater shoreline. It also has a lot of other minerals and natural resources such as timber and steel. Saudi and Russia are one-trick ponies.

Saudi can no longer sell all of the oil it wants to, much less at a price it sets. It is now hostage to the world oil markets and having failed to build a "real" economy, it will suffer.

The Saudis can always go back to humping camels riding camel humps.

[ericthai]

How is power to be supplied at night ----------------from blo*dy big batteries? Or is there 24 hour sun available in Saudi ?

Germany seems to use a lot of coal, gas and Nuk to keep the lights on and that is not counting the bought in energy !

https://en.wikipedia.org/wiki/Energy_in_Germany

yes, they use batteries that are typically deep cycle batteries, depending on the size either one or more batteries are used and are called banks. These can be connected to the grid or not. Do you know nothing about Solar power?

Your link is outdated from, try this one https://en.wikipedia.org/wiki/Renewable_energy_in_Germany

I'm an electrical engineer and have been involved in several large scale solar power systems. You can think it's a dream all you want but it's happening and with technology getting better pushing prices down each year. I'm not saying we will never use oil again as it's used for allot more than a fuel,(used to make plastics, lubricants, fertilizers, etc) but renewable energies are expanding worldwide. Solar power systems are being looked into by governments worldwide.

Edited October 27, 2015 by ericthai

[zzo]

What will the stores on Rodeo Drive, in LA do? And then the Beverly Hills realestate market! Oh my, oh my!

[Lampang2]

10 years ago the oil price was $50 a barrel and the Saudi's were making a good profit. So why are they making a loss now?

Volume drop.

[Lampang2]

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.

I disagree, I believe the Saudis and other OPEC countries kept production levels up to try to destroy the US shale oil companies.

Both are valid.

[marcosss]

Be a breakdown in the Middle East that would be a disaster for the world,

Big time, we need the Saudis believe it or not...

Really? We need these barbaric mediaeval savages? Why do we need them? Because they are an instrument of American influence in the middle east? The middle east is already a disaster thanks to the meddling of the US & its pursuit of regime change. If the Saudi's go under it wouldn't be an occasion worth mourning.

[oncearugge]

How is power to be supplied at night ----------------from blo*dy big batteries? Or is there 24 hour sun available in Saudi ?

Germany seems to use a lot of coal, gas and Nuk to keep the lights on and that is not counting the bought in energy !

https://en.wikipedia.org/wiki/Energy_in_Germany

yes, they use batteries that are typically deep cycle batteries, depending on the size either one or more batteries are used and are called banks. These can be connected to the grid or not. Do you know nothing about Solar power?

Your link is outdated from, try this one https://en.wikipedia.org/wiki/Renewable_energy_in_Germany

I'm an electrical engineer and have been involved in several large scale solar power systems. You can think it's a dream all you want but it's happening and with technology getting better pushing prices down each year. I'm not saying we will never use oil again as it's used for allot more than a fuel,(used to make plastics, lubricants, fertilizers, etc) but renewable energies are expanding worldwide. Solar power systems are being looked into by governments worldwide.

..

I know more than you may believe

Name me one grid which sources 20% +/- power from a battery source.

[Lampang2]

I remember 1973 when OPEC deliberately cut back on oil production. Prices skyrocketed and there were long lines at gas pumps. The lines were so bad that the US went to a system where odd numbered license plate cars could buy gas on odd numbered days, and even on even days.

Now Russia has discovered substantial amounts of oil and the US has become not only oil independent but energy independent. This after being told for decades that the world was about to run out of oil.

Saudi no longer has any clout because if they cut back production to drive prices up, the higher prices will spur Russia and the US to produce more. It is now the US that has the world's largest oil reserves.

For now there is an oil glut in the world and someone would need to explain to me why prices would go back up before I could understand how.

Cheers.

Have a check !

The low oil prices are driving the US "oil producers" to the wall!

Norway etc

Offshore.

No profit at current price.

Venezuela.

[Lampang2]

Their worried about 'peak demand' now---not -- 'peak oil'. (as in the 90')

Renewables are taking over. People detest using oil-- for many reasons. They now have a balanced view from the internet- rather than Corporate news- that was previously all they had.

The Arabs may need to crawl out of the black muck-- and into the solar panel factorys-- if the want to eat next year

Solar panels ! What a wonderful idea.

Where are the "Lunar panels" which will keep the lights on ?

Another "Green" dreamer ?

Not at all.

Three years ago, Saudi Arabia announced a goal of building, by 2032, 41 gigawatts of solar capacity, slightly more than the world leader, Germany, has today. According to one estimate, that would be enough to meet about 20 percent of the kingdom’s projected electricity needs—an aggressive target, given that solar today supplies virtually none of Saudi Arabia’s energy and, as of 2012, less than 1 percent of the world’s.

How is power to be supplied at night ----------------from blo*dy big batteries? Or is there 24 hour sun available in Saudi ?

Germany seems to use a lot of coal, gas and Nuk to keep the lights on and that is not counting the bought in energy !

https://en.wikipedia.org/wiki/Energy_in_Germany

Aircond in Thailand takes most energy during day time.

Giant solar plants being built around Lampang.