Just because Saudi Arabia is growing economic diversity doesn't mean they are running out of oil.
Now, I know, Wall Street understand population growth. Why would any reasonable person not believe Saudi Arabia needed to grow a diversified economy since people continue to enter the Saudi population through birth alone?
This is where Dick Cheney's friends went completely wrong. They believed they could push OPEC off it's price and force them to give up their customers and then ultimately American oil with new export laws could take over the global oil market.
"W"rong! OPEC is not that stupid. What does that say about the Bush/Cheney Energy report which featured the Caspian Sea?
America's million-billionaires think with greed in their heart. The rest of the world thinks with national strategy, national security, how that is enforced through markets and their place in global markets.
June 2, 2016
By Stanley Reed
Vienna — The new oil minister in Saudi Arabia, (click here) the de facto leader of the OPEC countries, had a message for the global market: Don’t expect us to influence the price of crude oil by adjusting supplies.
“I think managing in the traditional way that we tried in the past may never come again,” the minister, Khalid al-Falih, said on Thursday. “Certainly we will not go with certain price targets.”
The message — which came after the decision on Thursday by the 13-nation Organization of the Petroleum Exporting Countries to maintain high levels of oil production — is central to the changing strategy of the Saudi crude-oil complex. And it could foreshadow a period of volatility for oil prices because OPEC’s policies and the Saudis’ sway have long helped guide the markets.
In a sweeping directive last month, Saudi Arabia set forth plans to diversify its economy, reduce its dependence on oil and pull back on its government handouts. And what Mr. Falih does with Saudi Arabia’s oil — how much the kingdom decides to pump and where the money goes — is the biggest piece of the puzzle....
