Quote:
Originally Posted by sammyg2
Souwdy arabica was dumping excess oil into the market to drive the price down and chase away all the oil sands and shale producers, which would eventually allow them to monopolize the market again.
Problem was, we lasted longer than they expected and they started running out of money and rolls Royce's.
They started caving and allowed the price to go back up so they could afford to pay their harem girls.
That jacked up the price which may cost us a little more at the pump, but is good for the gubmint and good for the economy.
*as long as it doan go up much mo'.
|
At the higher prices they still can't afford the harem girls. With a lifting cost of less than 20 bucks the Saudis cleared 60 when crude was at 80. With crude at 50 they make 30. Their revenue stream has been decimated at either price.
They do still have about 450 billion of their 750 billion cash reserves on hand.
They have terrible problems outside of crude. The majority of citizens work for the government or are unemployed. Immigrants do most of the entry level jobs.
Now, the government can't afford all of the dead weight and is pushing workers into the public sector where they actually have to work. And they ain't happy.