Saudi Arabia may go broke

[haviZsultan]

It is not necessary that a country with oil should be rich. Venezuela is one such case. Saudis need to plan and think in advance what they are going to do when their dependence on oil is over.

 

[power of steel]

The thing is, Saudi Arabia is hostile to Israel because of religion. If it weren't for exporting oil to the US, the US would have put Saudi Arabia under severe sanction long ago.

Indeed, the US tricked Saudi Arabia into a quagmire in Yemen to weaken Saudi Arabia.

 

[[Bregs]]

Saudis have depended upon there oil rich economy for too long now and have not bothered alot to encourage there own industry in any forum so it might hurt when oil will stop giving price they want o

 

[IrbiS]

It'll be like waking up from a we* dream for them ( a very lengthy one indeed ) and going to work!

 

[Daneshmand]

Russia can make PAK FA, T-14, Yasen and improved Kilo, Mi-28N and Ka-52, A-50U. What can Saudi Arabia make? Not even bullets.

They produce some camels and dates too.

 

[A.M.]

The article seems to be off significantly.

The US shale producers are hurting badly. I know this because i shorted all of their stocks last year.

Here you go:

Oil & Gas Exploration and Production - NEC - Google Finance

S&P index is up 6% in the last twelve months. The Oil & Gas explorers and producers are down 32%.

 

[Sam.]

 

[black-hawk_101]

Wait and See what is going to happen next.

 

[rubyjackass]

Yeah then all south asians present there will return back home and put a lot of stress on home country.
Not to mention the radicalized ones. The problem is their wahabism (also backwardness) not the oil.

They could afford to be champions of Wahabism because of oil. Free riches is evil. Idleness is evil.

If the oil futures market is correct, Saudi Arabia will start running into trouble within two years. It will be in existential crisis by the end of the decade.
...

The International Monetary Fund estimates that the budget deficit will reach 20pc of GDP this year, or roughly $140bn. The 'fiscal break-even price' is $106.

Not able to balance budget is not equal to broke. Saudis have probably another 100 years to get their act together. First they should give some quality education to their children. Do you know if they have any good universities? I know only of KAUST.

The article seems to be off significantly.

The US shale producers are hurting badly. I know this because i shorted all of their stocks last year.

Here you go:

Oil & Gas Exploration and Production - NEC - Google Finance

S&P index is up 6% in the last twelve months. The Oil & Gas explorers and producers are down 32%.

Share price is completely detached from the viability of a company. Shale oil can still be viable. But low confidence in industry can prevent new investments.

However shale has an advantage. It does not take years to develop wells. From what I hear, it takes only a few months to start production from a brand new shale site.

 

[bdslph]

sometime in future saudi will run out of money but not now

 

[Echo_419]

Surprised to see Oman in that list

 

[That Guy]

Saudi Arabia has no high technology like Russia does. Without oil, Saudi Arabia would be as poor as Yemen.

But they do have enough resources to follow through on a back up plan.