Quote:
Originally Posted by KNS
Wow, 71scgc mentioned this as well. Is this a real possibility?
I wonder how Saudi Arabia will behave and price their oil without OPEC?
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OPEC is nothing more than a group of countries that get together and agree to production quotas (dictated by saudi) to control the supply and therefore artificially support the price of crude.
They all cheat a little bit, and saudi cheats the most.
it's worked for them so far.
But if they are used to maknig $100/bbl and they all the sudden have to run their gubmint on $50/bbl, they can't do that for very long.
They'll panic and start over-supplying. Once that happens it'll fall like a house of cards.
The only way I can see of that NOT happening is if the price rebounds and stabilizes at between $70 and $80.
Having OPEC crumble would be a good thing for the most part, but remember our neighbor to the south is an OPECKER and gets a whole lot of their money from oil. PEMEX is a gubmint run oil company and is the largest company in me-he-ko. They are the 6th largest oil producer on the planet.
If ME-HE-CO ran out of oil money it could get real ugly. Either we'd have to wipe their butts and pay their bills (even more than we (I) already have to) or the drug cartels could go for the juglar at first sign of weakness.
Then we'd have to go in there and fight a gorrilla war that would make shooting sheet heads in the ME look like a carnival game.
Cuba Could get involved with the help of The soviets, and it'd be WOLVERINES!
Yes that is worst case scenario but we doan wanna see that.
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