Official (Alberta) Oil Discussion Thread

[stampsx2]

And none of this takes into account that the saudis needed oil prices at $106 in 2015 to balance their budgets.

[GGG]

Originally Posted by Enoch Root

so which is it?

Instead of caused because they do control the price I should say complain that the Saudi's caused the price crash while complaining about dairy quotas in Canada.

[T@T]

Originally Posted by stampsx2

And none of this takes into account that the saudis needed oil prices at $106 in 2015 to balance their budgets.

If that's true they need a new finance minister.

[Kavvy]

Originally Posted by T@T

If that's true they need a new finance minister.

Saudi if you are reading this thread- limited time offer, act quick!

[Frequitude]

Originally Posted by zamler

Electrics and hybrids take advantage of this first law to recover energy normally converted to heat and not utilized for propulsion. Now explain to me how continuing to burn petrol addresses your concerns.

Um, its a really dense, cheap and transportable energy source. Do you believe in perpetual motion? Regenerative braking is definitely a great technology, but it only reduces fuel consumption in hybrids by about 25%.

[Frequitude]

Originally Posted by stampsx2

And none of this takes into account that the saudis needed oil prices at $106 in 2015 to balance their budgets.

Originally Posted by T@T

If that's true they need a new finance minister.

They have a $750B sovereign wealth fund. They'll be just fine for a while.

[Ironhorse]

Aren't they blowing through that at over a $1B a month right now, trying to outlast their competition?

[Fuzz]

Originally Posted by Frequitude

They have a $750B sovereign wealth fund. They'll be just fine for a while.

and dropping fast....

SAMA's net foreign assets totaled $628 billion in November, down from a record high of $737 billion in August 2014

http://www.reuters.com/article/us-sa...0US2UE20160114

[Roof-Daddy]

Originally Posted by Ironhorse

Aren't they blowing through that at over a $1B a month right now, trying to outlast their competition?

So they can only last about 600 months, give or take?

[nik-]

Originally Posted by Ironhorse

Aren't they blowing through that at over a $1B a month right now, trying to outlast their competition?

They spent 95 billion of it last year, so it's a lot higher than 1B a month.

[Fuzz]

Their problem is they can't just stop spending or they will have a revolution on their hands. They've created a welfare state supported entirely by petro-dollars. At some point they either need oil to go back up or find an alternate source of income. They can't just cut off the money to their people or it will look like Syria all over again.

[Reaper]

Originally Posted by Fuzz

Their problem is they can't just stop spending or they will have a revolution on their hands. They've created a welfare state supported entirely by petro-dollars. At some point they either need oil to go back up or find an alternate source of income. They can't just cut off the money to their people or it will look like Syria all over again.

At that point the USA war machine will free the hell out of them.

[nik-]

Freedom Drones: Giving you democracy whether you want it or not.

[SebC]

Originally Posted by Frequitude

Regenerative braking is definitely a great technology, but it only reduces fuel consumption in hybrids by about 25%.

Can't you also downshift/engine brake in a non-hybrid to charge the battery and reduce power diversion to the alternator?

[bsimms]

Originally Posted by nik-

They spent 95 billion of it last year, so it's a lot higher than 1B a month.

So if the Saudi's are going through approx 95 billion/year, and this downturn is approx 1 year old... they only have 6.5 years until $0. What will Alberta look like in 6.5 years from now with sub-forty dollar oil? I think the Saudi's will be just fine, but not so sure about us.

[linecook]

At current prices, Saudi will be broke in 2019.

http://www.cnbc.com/2016/02/23/saudi...cheap-oil.html

We had sub $15 barrel oil for a long time in the 90's and we're still around.

[nik-]

Originally Posted by bsimms

So if the Saudi's are going through approx 95 billion/year, and this downturn is approx 1 year old... they only have 6.5 years until $0. What will Alberta look like in 6.5 years from now with sub-forty dollar oil? I think the Saudi's will be just fine, but not so sure about us.

They're not going to blow all their cash reserves in the hope they can control the market when this turns around.

[Frequitude]

The best cure for high prices is high prices. Saudi Arabia keeping prices artificially high drove lots of innovation and technology improvements which has led to a crapload of oil that is profitable at $70-$80. It is going to take a tremendous amount of demand growth to push through that $70-$80 glut on the supply curve.

[polak]

and demand growth is slowing.

[T@T]

Couple of vids with Nenshi in them(depressing) but a good skit on the pipelines
http://money.cnn.com/2016/02/26/news...&iid=obnetwork