|
Napanee, Ontario | "too much of a good thing may not be very good for Saudi Arabia and the other oil producers. You can extract oil in Saudi Arabia at very low cost, but you have to understand the population of Saudi Arabia has now reached I think 25 million. So the social cost is very large. They need an oil price of around $80."
It's a good point. These one trick pony economies might have a very low cost of production, but they have also gotten used to that wide margin and become dependant on it.... well maybe. I don't think social rights have much recourse in Saudi. I could see them quite easily axing programs and expenditures much easier than US /Canada can. So how much they "need" the 80 dollar oil is really a function of how much they want to continue building ridiculous skyscrapers and creating artificial islands out in the ocean. Or keep that and just flush peoples standard of living back down the toilet. It's a dictatorship... what are they really gonna do about it? | |
|
Crude pancaking again this morning.
