Monday, April 17, 2017

The House that Fracking Didn't Build

It's long been the Rockhouse Hare-Brained Theory that the biggest driver behind the orgiastic fervor politicians bring to spreading filth over to the countryside by fracking is the cobbling of the Russian and Saudi economies by killing oil prices.  It has worked too.  (RT:  Saudi Arabia to shelve infrastructure projects costing billions as cheap oil bites)

Republicans do it but Republicans Who Pretend They Aren't (e.g. Obama, Clinton) did nothing to stop it and Clinton actively promoted it.

Russia can handle it because their economy is diverse enough to weather it but Saudi Arabia has always been a one-trick pony and that nag went lame when the price of oil tanked.  They saw OPEC wasn't dominating the market anymore but rather America had taken it because fracking means they can flood the market at will and the U.S. has never slowed production.

Riyadh, Saudi Arabia, March 1, 2017. © Faisal Al Nasser / Reuters

The oil-rich kingdom of Saudi Arabia has been forced to cancel or restructure economic and infrastructure projects worth billions of dollars, according to a Reuters report, which refers to sources in the government.

The Saudi government has ordered ministries and organizations to review the projects to either scrap or make them more efficient.

Most of the projects go back to the era of lavish government spending buoyed by crude oil prices above $100 per barrel. However, as current prices are below $55, they are no longer cost-efficient.

Riyadh's Bureau of Capital and Operational Spending Rationalization is now assessing the projects that are under 25 percent complete, the sources told Reuters.

"Some projects could be retendered so they can be executed in partnership with the private sector, possibly through build-operate-transfer (BOT) contracts," one source familiar with the plan told the agency.

"Other projects could be suspended if they do not meet the current economic objectives," the source said.

- RT

Ed:  they've gone bankrupt?


Ed:  what's the gain?

America can pick up the pieces for peanuts.  It's the same thing with Iran since it hasn't been about anything other than oil since America and Britain first started jacking the country around.  That never stopped either.  It's the same with Libya since that's the other of the biggest oil producers in the Middle East.  The Obama / Clinton death squads sure took care of that one.

Ed:  dominate OPEC and then own it?

That looks like the plan since there's obviously nothing else pretending to be a strategy.  There hasn't been a strategy since the advent of Middle East warring when nothing ever came from it except destabilization which serves perfectly for manipulation and control of oil prices.  All of the attacks by America have been against biggest oil producers in the region.


Anonymous said...

Russia is not a diverse economy 70% of export revenues come from oil and gas

Peas InOurThyme said...

Actually, more diverse is what I think I said but it's a fair point about their vulnerability to fluctuations but it's showing much less impact than with Saudis who seem quite screwed but still spend wildly on weapons. Looks to me like they're getting snaked.

Anonymous said...

You might refer to the comments Kannafoot made in your blog when the oil prices tanked.
The Saudis are not snaked just not overspending when the market is down

Peas InOurThyme said...

They're not genocidal murderers America supplies; they're just overspending.