203 online
 
Most Popular Choices
Share on Facebook 47 Printer Friendly Page More Sharing Summarizing
OpEdNews Op Eds    H3'ed 4/27/16

Sit back, relax, and enjoy the oil thriller

By       (Page 2 of 2 pages) Become a premium member to see this article and all articles as one long page.   4 comments

Pepe Escobar
Message Pepe Escobar
Become a Fan
  (190 fans)
Riyadh, we got a problem. Assuming that Aramco's partial IPO will yield that astonishing $2 trillion, and these funds are invested all across the West, Saudi Arabia could collect around $100 billion a year. Not much; in fact, only 1/6 of Saudi Arabia's GDP in 2015 ($653 billion, of which 70 percent come from oil exports). In a nutshell: this plan will not deliver Saudi Arabia a viable post-oil economy.

As if this was not enough, the oil hacienda is currently invested in two expensive wars -- in Yemen (directly) and Syria (indirectly). Crucial: the Warrior Prince de facto conducts both. Moreover, the House of Saud will continue to buy spectacularly costly weapons from the usual suspects -- the US, UK and France -- like there's no tomorrow.

Back to our OAs. OA8 says that the Saudis under the Warrior Prince made a major mistake: "They have now antagonized the Russians and the Americans. Brennan wants their blood no matter what he says as he thinks of them as terrorists. Also, he believes that they have nuclear tipped missiles from Pakistan. The US cannot reconcile themselves to this."

Moscow, on the other hand, wants friendly relations with Riyadh, but there's a perception Russia was betrayed at Doha (cutting oil production was a done deal until the Warrior Prince scuttled it on the very day of the signing.)

Which brings us to OA9: "The self-inflicted wound of cutting the oil price by the Saudis for market share is foolish. The time now is to conserve oil and refrain from selling it, awaiting the tripling of the Chinese economy with the Belt and Road plan. Demand in five or ten years would be massive and oil will be then near $200 a barrel."

So, in the end, our oil thriller will be all about China; Beijing will need to buy all the energy it needs to pursue the completion of the New Silk Roads. Meanwhile, the House of Saud faces a stark choice. Its "post-oil economy" plan will fail, as others before failed. The Warrior Prince must decide which of the superpowers to ally with. If he thinks he can pull it off all by himself, there's a cab driver gig waiting for him in London. If he can make it to Heathrow in one piece.

Next Page  1  |  2

(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).

Must Read 1   Well Said 1   News 1  
Rate It | View Ratings

Pepe Escobar Social Media Pages: Facebook page url on login Profile not filled in       Twitter page url on login Profile not filled in       Linkedin page url on login Profile not filled in       Instagram page url on login Profile not filled in

Pepe Escobar is an independent geopolitical analyst. He writes for RT, Sputnik and TomDispatch, and is a frequent contributor to websites and radio and TV shows ranging from the US to East Asia. He is the former roving correspondent for Asia (more...)
 

Go To Commenting
The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.
Writers Guidelines

 
Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Support OpEdNews

OpEdNews depends upon can't survive without your help.

If you value this article and the work of OpEdNews, please either Donate or Purchase a premium membership.

STAY IN THE KNOW
If you've enjoyed this, sign up for our daily or weekly newsletter to get lots of great progressive content.
Daily Weekly     OpEd News Newsletter

Name
Email
   (Opens new browser window)
 

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

The IMF goes to war in Ukraine

You Want War? Russia is Ready for War

Why Putin is driving Washington nuts

All aboard the New Silk Road(s)

Why Qatar wants to invade Syria

It was Putin's missile?

To View Comments or Join the Conversation:

Tell A Friend