Saudi Trip A Failure

MBS has told Biden that he will continue to support Russian interests on oil production and pricing.

Joe Biden’s Oil Gamble Set to Backfire as Saudi Arabia Sticks With Russia
https://www.newsweek.com/joe-biden-oil-gamble-backfire-saudi…

intercst

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First the administration called him a murderer and wanted him brought to trial and now they come on their knees to beg for relief of high oil prices which put them in a political bind.

Not what I would call a strong negotiating situation.

Jeff

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Saudi Arabia is making a lot more money this way. They have few reasons to cooperate to make things easier on us. And we have a society that has been consistent in our inability and complete lack of desire to remove ourself for petroleum dependency. Even now the call is not to find other ways of powering our society, but rather find ways to lower the cost of what we’ve been doing all this time.

Bill, in Texas. Waiting for the rolling black-outs (not kidding, risk is high today and this week).

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First the administration called him a murderer and wanted him brought to trial and now they come on their knees to beg for relief of high oil prices which put them in a political bind.

It‘s a dirty business, in all respects. Looks like the true cost of fossile energy dependency finally gets everyone’s attention.

Renewables will be the way to go.

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Saudi Arabia is making a lot more money this way. They have few reasons to cooperate to make things easier on us. And we have a society that has been consistent in our inability and complete lack of desire to remove ourself for petroleum dependency. Even now the call is not to find other ways of powering our society, but rather find ways to lower the cost of what we’ve been doing all this time.

Actually, we’re kind of pursuing a worst of both worlds scenario.

We’re half-heartedly trying to reduce our consumption of petroleum products, with lots of small measures that signal a desire to cut down on oil usage, but which don’t actually result in a significant reduction in that usage.

So, we still need lots of oil - and will continue to need lots of oil in the next several years - because we’re not making the hard choices that could really reduce demand. But we also signal to the companies that could increase our oil-generating capacity that any further investment is strongly disfavored, thus bumping up the regulatory cost/risk and possibly reducing the profitability of such investments in the intermediate- and long-term.

Of course, partly this is also because the current spike in oil prices is due to a probably temporary (though still not very short) exogenous supply shock to the oil markets caused by the Russian invasion and the responsive sanctions. Saudi isn’t really worried that this temporary spike in petroleum prices is going to materially alter the long-term trajectory of oil demand. Within a year or so (maybe sooner, maybe longer), Russian oil will get back to world markets on roughly the same terms as before. So why take actions to help the U.S. out?

Albaby

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hey now, my principles!!! My ideals!!! I don’t want a burger chain serving to middle class Russians. But I guess I’m fine buying gas or oil from Iran - they’re swell over there

First the administration called him a murderer and wanted him brought to trial and now they come on their knees to beg for relief of high oil prices which put them in a political bind.

Not what I would call a strong negotiating situation.

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I did not see anyone on their knees. IMO the US admin has lots of strong negotiating tools. For example MBS would like to get off the world’s black list.

Jaak

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Excuse me but MBS has to say no way will I work on this with the US…publicly.

The ex colonies politically have to poise as if they make the decisions.

Means nothing.

MBS wants US military support against Iran. Means much more.

As far as supporting Russia’s price for oil, how does SA or OPEC play a role in that?

SA and OPEC are not the buyers of Russian oil.

Slow down cowboys! Biden is not toast. Lets do the basic math first.

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Venezuela has the largest oil reserves in the world, accounting for about 18% of the total global reserves. It’s complicated.

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One murderous despot supports another murderous despot.

One murderous despot supports another murderous despot.

Sounds perfectly innocent

Venezuela has the largest oil reserves in the world, accounting for about 18%

It will take Venezuela years and years to get back to 1998 production levels.
Meanwhile, does the United
States import oil from OPEC?
About 900,000 bbl per day. The US exports 8,800,000 bbl per day.

1 Like