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<blockquote data-quote="NodakBuckeye" data-source="post: 49558" data-attributes="member: 714">True, Davey they can pull it up easier and do not pay royalties, etc...&nbsp; However, they pay a huge amount in subsidies for fuel costs, electrcity generation and lower prices are starting to take their toll on them too.&nbsp; They are looking at a budget deficeit of over 20% of their GDP this year, and while they have huge amounts of foreign assests, they lost over 60 billion dollars in value from January to June.&nbsp; They can limp along at 45 bucks a barrel for a little while, if it drops below 40 then they too are screwed.&nbsp; You can't just ramp up production when prices keep falling in hopes of replacing revenue since all you will do is drive down price further.&nbsp; At their current rate of oil consumption and known reserves there, Saudi Aramaco say they will be a net oil importer by 2030.&nbsp; Paybacks can be a real bitch.- - - Updated - - -I would also agree that the increase of Russian troops in Syria, Iran getting what it wants (as in the bomb), ISIS, etc.. is just going to fuel the flames of unrest in that region and beyond.&nbsp; Depending on your beliefs this is either just another bump in the road or the begining of the end.</blockquote>

[QUOTE="NodakBuckeye, post: 49558, member: 714"] True, Davey they can pull it up easier and do not pay royalties, etc... However, they pay a huge amount in subsidies for fuel costs, electrcity generation and lower prices are starting to take their toll on them too. They are looking at a budget deficeit of over 20% of their GDP this year, and while they have huge amounts of foreign assests, they lost over 60 billion dollars in value from January to June. They can limp along at 45 bucks a barrel for a little while, if it drops below 40 then they too are screwed. You can't just ramp up production when prices keep falling in hopes of replacing revenue since all you will do is drive down price further. At their current rate of oil consumption and known reserves there, Saudi Aramaco say they will be a net oil importer by 2030. Paybacks can be a real bitch. [COLOR="silver"][SIZE=1]- - - Updated - - -[/SIZE][/COLOR] I would also agree that the increase of Russian troops in Syria, Iran getting what it wants (as in the bomb), ISIS, etc.. is just going to fuel the flames of unrest in that region and beyond. Depending on your beliefs this is either just another bump in the road or the begining of the end. [/QUOTE]

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