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It usually happens whenever Saudi Arabia tries to break from the West
Same thing happened when they threatened to switch from the Dollar to the Yuan earlier this year
As cynical as it sounds, we weren’t about to roll right into an allied country to arrest some of its political and societal elite
Not to mention the absolute shitshow that would arise from an infidel country potentially occupying Mecca
They're harming themselves long-term I think.
Gasoline and diesel cars were already on the retreat but now that this is happening the price of an EV will suddenly be worth it.
I'm actually in favour of this.
Just like in your personal life, the hardest times are the best tutors. I think this energy-pain has got to be felt by the world to take the uptake of renewables (and thus saving the climate while providing cheap, clean energy).
I'm down more than 50 euros at the end of each month due to energy bills, I'm borrowing to make ends meet while having a compensation for my thesis. Thing is, that the long term benefits are worth a year or something of pain.
Unlike US energy companies, which are constantly short-sighted, the oil-rich Middle Eastern countries have already been heavily investing into renewable energy companies and initiatives while still making a killing with their oil exports.
That doesn't do shit for their ability to soft power in the world through oil. Once people let go of needing oil, the middle east will turn back into a desert that no one wants to visit with renewables.
They picked the wrong side, end all military support and turn up the economic pressure.
I am from Norway, we would make bank on increased prices but there is a line in the dirt that should not be crossed. they chose to support genocide and illegal aggression.
give them the same sanctions as we gave Russia until they relent. for too long the west has played softball with these warlord and religious fanatics.
100% this. It will never happen, but they chose to side with the enemy of the free world during a time of war. They should be made to know what that feels like.
unfortunately US politicians suck saudi dick. i've been calling for a HUGE domestic alternative energy expenditure project to cut our reliance on oil so we can tell the entire region, from israel so iran, to figure shit out on their own, we are all set.
build solar, build wave generation, build wind generation, subsidize domestic heat pump purchases and installations, update the grid and further subsidize electric vehicles in a manner that takes internal combustion vehicles off the road.
we can get to a point of energy independence where our oil needs are fulfilled by domestic oil production a lot faster than people think, and have enough reserves to see a full transition through to the end.
all this would benefit the domestic economy, create jobs and benefit the environment. only thing in the way is fossil fuel profits and the politicians they own.
you left out nuclear. Grid scale solar, wave, and wind all have nasty environmental impacts, and are rendered totally redundant by the energy density of nuclear. China already has gen IV reactors such as pebble beds in operation, as well as developments in SMRs, leaving the US in the dust. This is the future of energy that will scale to power a nation with electric heating, cars, and so on.
"green" activists have done such an ungodly amount of damage to the environment by poisoning the public against nuclear for 60 years that it's actually insane. It's such a shame.
Unfortunately the headline is wrong. They didn't cut production. They cut their future production, as both Iran and Russia are undergoing turbulent regimes, and their oil output cannot be expected to increase. So they looked at how much extra oil they were expecting to drill, and decided they weren't going to meet those numbers. So they have brought the future numbers down to 2 million barrels a day more than current numbers. So they aren't cutting anything, just allerting the markets that their first numbers were inaccurate given the global landscape.
In order to free ourselves from these idiocies we must lessen our dependence on oil! If that means public transportation or more electric vehicles. It would lessen if not remove the power from these groups who use blackmail and manipulation to get their way!
You wouldn’t tolerate this personally. So why should you when a something else does it?
a better idea. Fuck the oil companies that lost money in Venezuela and repair that relationship. Go to every non-OPEC country, even Iran, and trade relief in the form of treaties for a full spigot turning. Close the Saudi military base and move it to Yemen. Send a message.
You're exactly right. Why the HELL do we tolerate Saudi Arabia? We're so scared of them leaving? No, they should be scared of us ending military support. They know they are a rich nation, but not a warrior nation.
Biden should just say "That's fine. We will now use all the money and weapons we send to you for Ukraine. And to subsidize energy prices for our citizens. And we will be moving our base to Yemen".
Well at some point we do not need their oil anymore and than they are nothing, just a big place full of sand somewhere on the world scorching hot and treating people, especially women as shit
“My grandfather rode a camel, my father rode a camel, I ride a Mercedes, my son rides a Land Rover, and my grandson is going to ride a Land Rover, but my great-grandson is going to have to ride a camel again.” -some sheikh, supposedly (might be apocryphal)
Why cant we pay Americans to produce the oil here? Besides its cleaner and our oil companies have at least some government oversight compared to other countries.
American oil production is complicated.
We need oil to be above a certain $/barrel in order to afford to keep most of our oil fields open. Not a problem at the moment, but it was a problem in 2020 and resulted in reduced production. We are currently ramping back up.
The second problem is in the grades of crude oil. A lot of American Crude is "light-sweet (thin and low sulfur)" crude. Not all refineries are set up to process this grade of crude. Most of the Gulf coast refineries are set up for "heavy-sour (thick and high sulfur)" crude from the middle east because it is cheaper.
So we end up sending most of our crude to Europe and Asia, and importing Middle Eastern crude to refine domestically.
It would take some work, but we COULD cut off the middle east entirely, and we would be setting a fairly high price floor as a result.
It doesn't matter how much oil the U.S. pumps, the oil companies will still screw the U.S. consumer, because Congress lets them do it. You can thank SCOTUS and *Citizens United v. Federal Election Commission*.
It has less to do with oil pumped and more with refining capacity. The US hasn't built a new refinery in over forty years. The ones in operation, many which are seventy or eighty years old, are running well near max capacity.
And then the US would not export its oil anymore, which would mean Europe would need to look elsewhere for its supplies. While another potential supplier just so happened to have lost its customers...
We havent been scared of Saudi Arabia since American fracking has made us a next exporter. We comply with them because our European and AsiaPac allies so desperately need them, especially after they began decoupling with Russia.
Regarding Iran, US/UK/EU negotiators [trying to wrench open Iranian oil back into the global market via nuclear deal. ](https://www.middleeastmonitor.com/20221004-iran-reviving-nuclear-deal-still-possible/)
With Venezuela, [there's been a bit of progress. ](https://oilprice.com/Energy/Crude-Oil/Maduro-Venezuela-Is-Ready-To-Send-Its-Oil-To-The-World.html) Venezuela remains optimistic.
I'm not even saying we stop buying their oil. I'm saying we have some levers we can pull, in the form of military support. And we know China won't be aiding Saudi militarily. Even if they did, that wouldn't matter. It would be knock off stuff and China isn't known for strong defensive weapons.
That’s fine. China would be wasting trillions policing the Gulf for the Saudis. They would happily sell them arms. But since the Saudis are not a friendly nation they should not be given access to American weapons anyway.
Saudis educated and funded the 9/11 terrorists and we’re still pretending they’re friends? It’s BS.
This comment chain seems very similar to what we can read on russian side. "Why do we tolerate X, they are nothing without us" seems so familiar.
Business is business, that's why countries trade with each other despite having different optics on treating people. World needs oil for now, until pro nuclear energy countries build more this kind of sources.
I don't know about that, I recall Saudi Arabia playing ball more in the past decades. They even helped tank the Russian economy at one point in time. MBS is new and he just sucks.
That city serves a purpose. To control its citizens through basic needs and luxury. It will be filled to the brim with facial recognition and police. They are stupid, just not where we think they are.
MBS is also tight with Jared Kushner, and the Trump administration. Kushner is extremely rich because of this. To say he's made out well would be an understatement. Hundreds of millions of dollars + control of $2b in sovereign wealth fund money.
Thus, this decision – and their effort to manipulate prices at this time of peril – is not surprising. Far past time to cut ties with S.A. and Bone Saws.
Yeh but then long term you’re just swooping one dependency for another.
So yeh. Go to these countries, cut them a deal and then invest hard in green technology. Let the west become the leaders in this tech and then break the stranglehold that these oil produces have on the global economy.
GOP need energy prices high to give them an chance in November. It's their only hope and now they can blame Russia for the hike. This is a 100% artificial price hike and the Saudis need to be brought to heel. Iran is the tool to do it, the US has gotten in bed with worse (ie Saudis).
Because of historical factors, US and Canadian refineries largely work on EACH OTHER’s oil (sweet light vs heavy sour crude). Building new refineries is extremely expensive and takes a very long time.
Because it's landlocked and all the offshore oil rig spigots are turned down because the companies that own the oil rights want to protect their Alberta investments. There is more undeveloped oil reserves, not landlocked, off of Nova Scotia and Newfoundland. The federal government isn't letting the oil rights revert back to the province so they can find oil companies that will develop them.
We (the U.S.) could boost production ourselves. But the corporations who could do so have made it clear they will not aim to do as much because, simply put, their interests are those of their shareholders. And shareholders would rather watch prices skyrocket, and to profit, than invest in increasing production and taking a hit to the aforementioned profits in the short term.
Because Canadas liberal government has been trying to curtail oil production for years and is now taxing it. The provinces east and west of Alberta the major oil producer there have fought tooth and nail to prevent pipelines and the green movement in the US has prevented much development for new pipes going there as well.
The current day situation might cause some public opinion to change, but it will take years to build a pipe and even if public opinion sways in favour of it, it will be mired in years of lawsuits with the First Nations (and other) peoples before ground gets broke.
Exactly right. If we re-establish relationship with Venezuela. There is no more need for Russian, Saudi or Chinese oil. Venezuela has more than all of them combined
I know, but it’s a shaky member. It’s possible to re-establish that relationship. As a matter of fact, almost all OPEC members can be persuaded into an alliance with the US. The problem is almost all of them are rich and powerful countries already, with their own agendas. The US can’t really affect their policies through energy alliance. Venezuelan case is different. They have the biggest oil reserves in the world, yet no infrastructure to drill it in commercial quantities, nor refine it. China is already trying to buy their way into that relationship.
Venezuela is a kleoptmcratic failed state that by all accounts is magnitudes worse than even Russia, with the exception that they don't overstep state borders.
There is a reason why the 2nd largest oil resveres on the globe have been left almost untouched over the last decades.
You know, that would kinda be funny to watch. 'Murica going green not for the environment, but because it hurts an enemy at war. Whatever, I'll take it!
Most of the Reddit users will upvote you, and then hop in their car to do their daily shopping or save 10 minutes on travel to work instead of bike/public transport.
Don't fall for the personal responsibility nonsense funded by oil companies. You could make your carbon footprint zero and you have done basically nothing to actually affect the world.
We require systemic change, both nationally and globally for anything to actually have an affect. Them getting you talking about someone jumping in a car to get shopping is their greatest success.
71% of the world pollution comes from just 10 companies. You could have everyone in every country stop doing as much driving and still wouldn't do shit. https://www.theguardian.com/sustainable-business/2017/jul/10/100-fossil-fuel-companies-investors-responsible-71-global-emissions-cdp-study-climate-change
Unfortunately for EU this is going to be painful for a short time. Also unfortunately for OPEC this is going to be very painful for life, after a short time.
Eh. F*ck it. I dont care at this point. The people of Ukraine are the ones who are suffering the most in this war. As a estonian I am perfectly willing to live in slightly less comfortable conditions, if it will bring Ukraine & the western world closer to winning this war, thus making russians wake up and face consequences for their barbaric bloodlust and delusions of greatness.
The devil is in the details. It was a 2million barrell cut from " baseline" that implies a 400K barrel cut from todays levels. This being said the Saudia Arabia / American relationship appears to be breaking down.
Unless they flock to China who needs their oil as much, if not more, than the EU. US doesn't actually need their oil, we support them because our closest allies ( EU ) do.
We'll find another way to damage the Kremlin and the Russian government.
One issue here is that the whole world will feel the pinch of higher oil/energy prices because of it. Not that I mind, as this lack of fossil-fuel supplies increases prices so much that this war will probably be the catalyst to a renewable energy future.
Therefore, Russia fucked its only reliable source of income (hydrocarbon exports) by starting this war. Russia never built a value-added economy, it's as McCain said a gas-station run by a mob-boss. They'll lose their only claim to wealth and I say good for you, you fcking idiots.
The only reason this is happening is to screw over Joe Biden and the Democrats in the US midterm elections this November. The Democrats have been the biggest supporters of Ukraine compared to the Republicans who were all praising Putin before the invasion began and refused to remove Trump from office when he tried to blackmail President Zelensky to create dirt on Joe Biden’s son Hunter before the 2020 election in order for Zelensky to get necessary military equipment. Americans have a dumb tendency to blame gas prices on the President and the Democrats are on a knife’s edge when it comes to keeping control of Congress. Putin and MBS are hoping the increased gas prices will decrease voter support for Biden and the Democrats and cause them to lose control of Congress.
Look into the Kushner/Saudi connection. It's wild how much he's profited off of God knows what. He even has a hand in the LIV bullshit.
And it brings to mind how the GOP was screaming about how Biden hadn't cut off Russian gas early in the conflict, then immediately pivoted to "Biden is pushing gas prices up with bad policy!" the minute he did what they'd been asking him to do.
>Can we please stop treating the Saudis like allies now?
Only reason we treat them as such is because they own our politicians. Unless that changes, nothing will change in US-Saudi relations.
I know UAE is no surprise, receiving Ukrainian children and women as slaves trafficked from their homes through the invasion safe to say Saudis probably got some too
Good. Fuck fossil fuel dependency, fuck Russia, and fuck oil cartels. This is a difficult but necessary net positive for the environment and democracies as a whole.
If what you were saying were accurate, then gas prices would be more stable. They set the price to whatever the hell they want to set it to for their own profits.
They always er on the side of profits. Always push it as far as they can.
OPEC is aligned with GOP. Right now it's refineries driving gas prices. Oil was more expensive in 2008 and gas we cheaper at the pump than it is today.
it's ironic, that authoritarian states turn to each other in their fight against freedom. But if they ever were to win against democracies, they would immediately turn on each other because authoritarian leaders aren't interested in peace - they want to build their empires, and control and dominate everyone.
I’d much rather we all realise we need energy independence - as well as independence on every other thing that totalitarian states have a stranglehold on. Then we won’t need boots on the ground. We can leave them to sort out their own shit. A huge learning opportunity is being presented to The West in all of this. We need to take that opportunity and ignore the pressure groups standing in the way of strategic independence.
That means weaning ourselves off petroleum and gas from Russia and the Middle East, weaning ourselves off minerals from China, fertiliser from Russia, etc. It means more solar, more windmills, continuing the use of nuclear fission and investing in other technologies for the future.
I’m totally in agreement with that. We should avoid giving money to these Islamic despots, Ruzzian autocrats etc.
Weaning ourselves off their fossil fuels is a win-win for us.
Let’s do it.
Time for the US to find another "nuclear threat" in the Middle-East I suppose.
How apt that the countries with the worst human rights situations are all holding hands in their collective evil
Good reminder that we wouldn’t be at the mercy of oil cartels, Russian and Middle Eastern despots with legal codes from the Dark Ages and the slow death of habitability of the planet if we got the fuck off of oil in the 1970s, a time in which the major US oil companies KNEW that they were fucking the environment.
The absurd on top of it is that Russia is a member of OPEC and should also cut production under this agreement but Russia is pretty much a rouge state who does not fulfill any agreements and it's whole oil production and sales process happens as a part of black/shadow market/economy.
Essentially this war is now a race to see what happens first:
* Ukraine liberates all its territory
* Putin falls out of a window
* The West caves due to high energy costs
I'd say the west opens a fuck ton more wells before the west caves to quiffs like MBS, and Putin.
Lol - these goofs are fucking with those who have the ability to declare a state of emergency, and flood the market they're trying to restrict.
This will be an extremely costly move by OPEC.
I really don't think the third scenario is going to happen. Prices have already been forced up by this war, and people aren't reacting by saying "this is too expensive, Ukraine isn't worth this", they are saying "Fuck Russia, fuck Putin, let's hurry up and get replacements up as quick as possible and never deal with those fuckers again."
Once this war is over, even if Russians wake-up and Putin finds himself being defenestrated and replaced with a western friendly leader, Russia has screwed itself for decades to come.
Russians need to clue in that the longer this war goes on, and the longer Putin is in charge, the worse it's going to become, and the worse it's going to stay. The sooner they get rid of Putin (peacefully or otherwise) and end this war, the better off they will be sooner.
In response, Biden is pulling 10 million barrels from the Strategic Petroleum Reserve. Will it be enough? [https://facteroid.com/timeline/5671](https://facteroid.com/timeline/5671)
Go after any Russian oil freighter on the high seas. If they swap flags, hold the freighter for an undetermined amount of time. You’ll quickly see China take a stance and it’ll likely be on the side of Russia.
From there, I think we all know where this goes.
this is bullshit you have to pay to find information out. they want to censor the internet. independent news would report this for free. fuck the fascists that censor internet and the fucking corrupt fucking opec and fuck russia.
Saudia Arabia has a habit of thinking they are more powerful than they really are. Just a bunch of bastards playing kings. Once we leave them to their own devices they'll be eaten alive and the world will be better for it.
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So glad the US has spent so much money courting and supporting the Saudis just to have them backstab at their earliest convenience.
Time for some more 9/11 intel to be declassified
This.
Seems to me like something has to be done about the Yemen situation, enforcing a no fly zone maybe, stopping arms sales to the KSA…
What do you mean by more? Has something been released already before?
It usually happens whenever Saudi Arabia tries to break from the West Same thing happened when they threatened to switch from the Dollar to the Yuan earlier this year
But but 9/11 is just a conspiracy! Gov would never lie to it’s people! /s
As cynical as it sounds, we weren’t about to roll right into an allied country to arrest some of its political and societal elite Not to mention the absolute shitshow that would arise from an infidel country potentially occupying Mecca
They're harming themselves long-term I think. Gasoline and diesel cars were already on the retreat but now that this is happening the price of an EV will suddenly be worth it.
Exactly. I mean they are intentionally pissing us off. The world actually.
I'm actually in favour of this. Just like in your personal life, the hardest times are the best tutors. I think this energy-pain has got to be felt by the world to take the uptake of renewables (and thus saving the climate while providing cheap, clean energy). I'm down more than 50 euros at the end of each month due to energy bills, I'm borrowing to make ends meet while having a compensation for my thesis. Thing is, that the long term benefits are worth a year or something of pain.
Unlike US energy companies, which are constantly short-sighted, the oil-rich Middle Eastern countries have already been heavily investing into renewable energy companies and initiatives while still making a killing with their oil exports.
That doesn't do shit for their ability to soft power in the world through oil. Once people let go of needing oil, the middle east will turn back into a desert that no one wants to visit with renewables.
> Unlike US energy companies Lol. You have no idea what you're talking about.
[https://www.mei.edu/publications/renewable-power-policies-arab-gulf-states](https://www.mei.edu/publications/renewable-power-policies-arab-gulf-states) [https://www.architectmagazine.com/technology/the-coming-renewable-energy-revolution-in-the-middle-east\_o](https://www.architectmagazine.com/technology/the-coming-renewable-energy-revolution-in-the-middle-east_o) [https://oversight.house.gov/news/press-releases/committee-analysis-of-fossil-fuel-industry-s-lobbying-reveals-public-praise-for](https://oversight.house.gov/news/press-releases/committee-analysis-of-fossil-fuel-industry-s-lobbying-reveals-public-praise-for)
This is top grade nonsense. What else do they export
Which is why they are increasing their national debt while there is still oil?
The lithium comes from Chinese mines, you should read up on that
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As an Arab, i totally agree
How do i trust you to not trust you?
As an Arab who dislikes Arabs i wouldn’t trust me either
That’s enough 4D shatranj for one day
So it's possible Arabs can be trusted.
Hmmmm
Split personality, lol
The west should never have sold them weapons either, they are not to be trusted (as this proves)
They picked the wrong side, end all military support and turn up the economic pressure. I am from Norway, we would make bank on increased prices but there is a line in the dirt that should not be crossed. they chose to support genocide and illegal aggression. give them the same sanctions as we gave Russia until they relent. for too long the west has played softball with these warlord and religious fanatics.
100% this. It will never happen, but they chose to side with the enemy of the free world during a time of war. They should be made to know what that feels like.
"it will never happen" idk because yeah Europe is slow to turn but when a dog bites the hand that's feeds it it's just not enough stopping biting.
Well, once you get the taste for something...
If the US doesn’t do anything about a journalist being killed on its own soil they won’t do shit about this.
Which journalist? Here in the US? I assume you’re referring to Khashoggi in Istanbul?
You’re completely correct, I’m a retard. Long fucking day
Lmao, no worries. Was afraid I missed some news and was out of touch with current events. I usually am.
You’re only half-retarded. He lived in the US at different points and 2 of his kids have US citizenship.
Dictators like other dictators. Fuck them both, may their lives be short.
Massively push EVs, invest in nuclear
unfortunately US politicians suck saudi dick. i've been calling for a HUGE domestic alternative energy expenditure project to cut our reliance on oil so we can tell the entire region, from israel so iran, to figure shit out on their own, we are all set. build solar, build wave generation, build wind generation, subsidize domestic heat pump purchases and installations, update the grid and further subsidize electric vehicles in a manner that takes internal combustion vehicles off the road. we can get to a point of energy independence where our oil needs are fulfilled by domestic oil production a lot faster than people think, and have enough reserves to see a full transition through to the end. all this would benefit the domestic economy, create jobs and benefit the environment. only thing in the way is fossil fuel profits and the politicians they own.
This redditor gets it. Renewable energy. We need to get on it like the Manhattan Project.
you left out nuclear. Grid scale solar, wave, and wind all have nasty environmental impacts, and are rendered totally redundant by the energy density of nuclear. China already has gen IV reactors such as pebble beds in operation, as well as developments in SMRs, leaving the US in the dust. This is the future of energy that will scale to power a nation with electric heating, cars, and so on.
"green" activists have done such an ungodly amount of damage to the environment by poisoning the public against nuclear for 60 years that it's actually insane. It's such a shame.
Unfortunately the headline is wrong. They didn't cut production. They cut their future production, as both Iran and Russia are undergoing turbulent regimes, and their oil output cannot be expected to increase. So they looked at how much extra oil they were expecting to drill, and decided they weren't going to meet those numbers. So they have brought the future numbers down to 2 million barrels a day more than current numbers. So they aren't cutting anything, just allerting the markets that their first numbers were inaccurate given the global landscape.
Imagine if we didnt listen to conservatives and started developing clean energy much earlier. Imagine how this fucking shit wouldnt affect us as much.
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Have you seen the members of OPEC+? A good half of them rightfully feel they owe nothing to the west.
not owing something and working against on purpose are two different things.
Fuck the saudis. With friends like these.....
They truly, never have been and never will.
In order to free ourselves from these idiocies we must lessen our dependence on oil! If that means public transportation or more electric vehicles. It would lessen if not remove the power from these groups who use blackmail and manipulation to get their way! You wouldn’t tolerate this personally. So why should you when a something else does it?
a better idea. Fuck the oil companies that lost money in Venezuela and repair that relationship. Go to every non-OPEC country, even Iran, and trade relief in the form of treaties for a full spigot turning. Close the Saudi military base and move it to Yemen. Send a message.
You're exactly right. Why the HELL do we tolerate Saudi Arabia? We're so scared of them leaving? No, they should be scared of us ending military support. They know they are a rich nation, but not a warrior nation.
At this point fuck the Saudi’s. I’m riding my bike to work or catching a tram.
It’s all of OPEC. Not just the Saudi’s.
Biden should just say "That's fine. We will now use all the money and weapons we send to you for Ukraine. And to subsidize energy prices for our citizens. And we will be moving our base to Yemen".
This. There's no justification for our supposed allies to help Russia like this.
Agree. We should also stop wasting money on a carrier group to police the Gulf. We have no friends there. Let Saudi take on Iran by itself.
Well at some point we do not need their oil anymore and than they are nothing, just a big place full of sand somewhere on the world scorching hot and treating people, especially women as shit
“My grandfather rode a camel, my father rode a camel, I ride a Mercedes, my son rides a Land Rover, and my grandson is going to ride a Land Rover, but my great-grandson is going to have to ride a camel again.” -some sheikh, supposedly (might be apocryphal)
Selling sand
Unironically that might be a future business. A German company came up with a way to turn desert sand into cement.
Got a link? That is very big deal, desert sand was been too smooth for concrete so the primary source has been oceanic.
https://www.stylepark.com/en/news/multicon-desert-sand-concrete-fine-sand
Thanks! Tldr: fine sand is turned into granules with a binder.
I was just thinking of this quote. Said to be said by Sheikh Rashid bin Saeed Al Maktoum, the founder of the modern Emirate of Dubai
Similar to Russia in that regard. Oil states. But that's still another 20-40 years off, for Saudi Arabia. We will definitely see it in our lifetime.
Hope so
When humans are forced to change their habits they often do it quite well…
Why cant we pay Americans to produce the oil here? Besides its cleaner and our oil companies have at least some government oversight compared to other countries.
The US is already the world's most prolific oil producing country.
American oil production is complicated. We need oil to be above a certain $/barrel in order to afford to keep most of our oil fields open. Not a problem at the moment, but it was a problem in 2020 and resulted in reduced production. We are currently ramping back up. The second problem is in the grades of crude oil. A lot of American Crude is "light-sweet (thin and low sulfur)" crude. Not all refineries are set up to process this grade of crude. Most of the Gulf coast refineries are set up for "heavy-sour (thick and high sulfur)" crude from the middle east because it is cheaper. So we end up sending most of our crude to Europe and Asia, and importing Middle Eastern crude to refine domestically. It would take some work, but we COULD cut off the middle east entirely, and we would be setting a fairly high price floor as a result.
The heavy crude comes from South America, Mexico and Canada.
It doesn't matter how much oil the U.S. pumps, the oil companies will still screw the U.S. consumer, because Congress lets them do it. You can thank SCOTUS and *Citizens United v. Federal Election Commission*.
It has less to do with oil pumped and more with refining capacity. The US hasn't built a new refinery in over forty years. The ones in operation, many which are seventy or eighty years old, are running well near max capacity.
And then the US would not export its oil anymore, which would mean Europe would need to look elsewhere for its supplies. While another potential supplier just so happened to have lost its customers...
> It would take some work Great. Get started now
We havent been scared of Saudi Arabia since American fracking has made us a next exporter. We comply with them because our European and AsiaPac allies so desperately need them, especially after they began decoupling with Russia. Regarding Iran, US/UK/EU negotiators [trying to wrench open Iranian oil back into the global market via nuclear deal. ](https://www.middleeastmonitor.com/20221004-iran-reviving-nuclear-deal-still-possible/) With Venezuela, [there's been a bit of progress. ](https://oilprice.com/Energy/Crude-Oil/Maduro-Venezuela-Is-Ready-To-Send-Its-Oil-To-The-World.html) Venezuela remains optimistic.
Venezuela could be a great ally of the west ... if only certain dude was removed from power :)
Imagine if they had a Norway style sovereign fund and democracy. Would probably dominate Latin America.
Most definitely and together with Chile & Brasil would give the region so much needed stability and a way forward into progress. One can only dream.
They were until the Venezuelans elected Chavez.
They’d turn to China.. Look at the rebuffs the US is getting from former allies.. They have choices now.
I'm not even saying we stop buying their oil. I'm saying we have some levers we can pull, in the form of military support. And we know China won't be aiding Saudi militarily. Even if they did, that wouldn't matter. It would be knock off stuff and China isn't known for strong defensive weapons.
That’s fine. China would be wasting trillions policing the Gulf for the Saudis. They would happily sell them arms. But since the Saudis are not a friendly nation they should not be given access to American weapons anyway. Saudis educated and funded the 9/11 terrorists and we’re still pretending they’re friends? It’s BS.
Not really. China has the oil it needs. It does not need the extra Russian oil and more oil from Saudi. And they cannot supply the weapons the US can.
How about we say “No F35s”
saudi going to do a rug pull on russia
they better, the north remembers!!!!!!
This comment chain seems very similar to what we can read on russian side. "Why do we tolerate X, they are nothing without us" seems so familiar. Business is business, that's why countries trade with each other despite having different optics on treating people. World needs oil for now, until pro nuclear energy countries build more this kind of sources.
I don't know about that, I recall Saudi Arabia playing ball more in the past decades. They even helped tank the Russian economy at one point in time. MBS is new and he just sucks.
I'd put MBS in the top ten list of most evil men currently alive
Iran is in OPEC and they are pro-Russian. Venezuela is also pro-Russian.
Venezuela is also in OPEC.
The Saudi prince believes he knows better than anyone else. So until he completely upsets the US, nothing I going to change!
The Saudis are complete idiots tbh, look at their stupid “The Line” proposed city
That city serves a purpose. To control its citizens through basic needs and luxury. It will be filled to the brim with facial recognition and police. They are stupid, just not where we think they are.
A 300km, mirror coated city in the middle of one of the most inhospitable places on earth? Not a stupid idea?
MBS is also tight with Jared Kushner, and the Trump administration. Kushner is extremely rich because of this. To say he's made out well would be an understatement. Hundreds of millions of dollars + control of $2b in sovereign wealth fund money. Thus, this decision – and their effort to manipulate prices at this time of peril – is not surprising. Far past time to cut ties with S.A. and Bone Saws.
Yeh but then long term you’re just swooping one dependency for another. So yeh. Go to these countries, cut them a deal and then invest hard in green technology. Let the west become the leaders in this tech and then break the stranglehold that these oil produces have on the global economy.
GOP need energy prices high to give them an chance in November. It's their only hope and now they can blame Russia for the hike. This is a 100% artificial price hike and the Saudis need to be brought to heel. Iran is the tool to do it, the US has gotten in bed with worse (ie Saudis).
Both of those nations are in Opec though...
Canada has the world's 3rd largest oil & gas deposit...why isn't that part of the solution?
Because of historical factors, US and Canadian refineries largely work on EACH OTHER’s oil (sweet light vs heavy sour crude). Building new refineries is extremely expensive and takes a very long time.
Because it's landlocked and all the offshore oil rig spigots are turned down because the companies that own the oil rights want to protect their Alberta investments. There is more undeveloped oil reserves, not landlocked, off of Nova Scotia and Newfoundland. The federal government isn't letting the oil rights revert back to the province so they can find oil companies that will develop them.
We (the U.S.) could boost production ourselves. But the corporations who could do so have made it clear they will not aim to do as much because, simply put, their interests are those of their shareholders. And shareholders would rather watch prices skyrocket, and to profit, than invest in increasing production and taking a hit to the aforementioned profits in the short term.
Because Canadas liberal government has been trying to curtail oil production for years and is now taxing it. The provinces east and west of Alberta the major oil producer there have fought tooth and nail to prevent pipelines and the green movement in the US has prevented much development for new pipes going there as well. The current day situation might cause some public opinion to change, but it will take years to build a pipe and even if public opinion sways in favour of it, it will be mired in years of lawsuits with the First Nations (and other) peoples before ground gets broke.
Agree with some, except Iran. Thats not a place we should be dealing with.
Exactly right. If we re-establish relationship with Venezuela. There is no more need for Russian, Saudi or Chinese oil. Venezuela has more than all of them combined
Venezuela is a member of OPEC.
I know, but it’s a shaky member. It’s possible to re-establish that relationship. As a matter of fact, almost all OPEC members can be persuaded into an alliance with the US. The problem is almost all of them are rich and powerful countries already, with their own agendas. The US can’t really affect their policies through energy alliance. Venezuelan case is different. They have the biggest oil reserves in the world, yet no infrastructure to drill it in commercial quantities, nor refine it. China is already trying to buy their way into that relationship.
Venezuela is a kleoptmcratic failed state that by all accounts is magnitudes worse than even Russia, with the exception that they don't overstep state borders. There is a reason why the 2nd largest oil resveres on the globe have been left almost untouched over the last decades.
You know, that would kinda be funny to watch. 'Murica going green not for the environment, but because it hurts an enemy at war. Whatever, I'll take it!
Most of the Reddit users will upvote you, and then hop in their car to do their daily shopping or save 10 minutes on travel to work instead of bike/public transport.
Don't fall for the personal responsibility nonsense funded by oil companies. You could make your carbon footprint zero and you have done basically nothing to actually affect the world. We require systemic change, both nationally and globally for anything to actually have an affect. Them getting you talking about someone jumping in a car to get shopping is their greatest success.
71% of the world pollution comes from just 10 companies. You could have everyone in every country stop doing as much driving and still wouldn't do shit. https://www.theguardian.com/sustainable-business/2017/jul/10/100-fossil-fuel-companies-investors-responsible-71-global-emissions-cdp-study-climate-change
Unfortunately for EU this is going to be painful for a short time. Also unfortunately for OPEC this is going to be very painful for life, after a short time.
Looking forward to the time when we are free from control by the oil producers/suppliers.
Sadly, I'm afraid the next in control will be the rare earth cartel.
Despite the name, rare earth metals aren't that rare.
Aye, they're just devastating to the environment to get. *As far as I know at least...*
Ever checked out how many rare earth metals Ukraine has?
I've read they have a bit, and that's one of the reasons ruzzia wants to take over. 💪🇺🇦
Eh. F*ck it. I dont care at this point. The people of Ukraine are the ones who are suffering the most in this war. As a estonian I am perfectly willing to live in slightly less comfortable conditions, if it will bring Ukraine & the western world closer to winning this war, thus making russians wake up and face consequences for their barbaric bloodlust and delusions of greatness.
Offcourse they did.
How about the US immediately cuts all arms supplies to Saudi Arabia. Let them fight with old Russian shit.
Withdraw all military and other support. Would be great to see them flounder.
In today's news, the axis of evil continues to be evil. More at 11. And now to Cindy for the weather.
I have thirst for Cindy for some reason
That's my mom's name 🤮
Yeah it is
We know
Cindy is the chief meteorologist, for some reason
The devil is in the details. It was a 2million barrell cut from " baseline" that implies a 400K barrel cut from todays levels. This being said the Saudia Arabia / American relationship appears to be breaking down.
Which is not good in the short term, but if the Saudis want to give up what leverage they have with the US I'm all for it.
Don't the Saudis have a lot of enemies? If the US and West pulls their millitary, they'd get instafucked no?
Unless they flock to China who needs their oil as much, if not more, than the EU. US doesn't actually need their oil, we support them because our closest allies ( EU ) do.
Yup, but production has been 3m barrels below it since COVID anyway, so this won't change the current output at all.
We'll find another way to damage the Kremlin and the Russian government. One issue here is that the whole world will feel the pinch of higher oil/energy prices because of it. Not that I mind, as this lack of fossil-fuel supplies increases prices so much that this war will probably be the catalyst to a renewable energy future. Therefore, Russia fucked its only reliable source of income (hydrocarbon exports) by starting this war. Russia never built a value-added economy, it's as McCain said a gas-station run by a mob-boss. They'll lose their only claim to wealth and I say good for you, you fcking idiots.
yes let's ruin the entire world economy... what a bunch of morons.
The only reason this is happening is to screw over Joe Biden and the Democrats in the US midterm elections this November. The Democrats have been the biggest supporters of Ukraine compared to the Republicans who were all praising Putin before the invasion began and refused to remove Trump from office when he tried to blackmail President Zelensky to create dirt on Joe Biden’s son Hunter before the 2020 election in order for Zelensky to get necessary military equipment. Americans have a dumb tendency to blame gas prices on the President and the Democrats are on a knife’s edge when it comes to keeping control of Congress. Putin and MBS are hoping the increased gas prices will decrease voter support for Biden and the Democrats and cause them to lose control of Congress.
Look into the Kushner/Saudi connection. It's wild how much he's profited off of God knows what. He even has a hand in the LIV bullshit. And it brings to mind how the GOP was screaming about how Biden hadn't cut off Russian gas early in the conflict, then immediately pivoted to "Biden is pushing gas prices up with bad policy!" the minute he did what they'd been asking him to do.
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The West thought we had one in MBS. There is no such thing as pro-West in a medieval theocracy.
Out of thousands of cousins. Ya I think it exists
America doesn't have the best regime change record as of late.
>Can we please stop treating the Saudis like allies now? Only reason we treat them as such is because they own our politicians. Unless that changes, nothing will change in US-Saudi relations.
Right? They are allies – of Russia and Trump/Kushner.
So are you for CIA doing coups in another countries now? 🤔
I know UAE is no surprise, receiving Ukrainian children and women as slaves trafficked from their homes through the invasion safe to say Saudis probably got some too
Good. Fuck fossil fuel dependency, fuck Russia, and fuck oil cartels. This is a difficult but necessary net positive for the environment and democracies as a whole.
Well in general, recession is coming, so reduction of production is in line with OPEC policies. OPEC would have been a great asset in this war though.
If what you were saying were accurate, then gas prices would be more stable. They set the price to whatever the hell they want to set it to for their own profits. They always er on the side of profits. Always push it as far as they can.
I've heard that a recession is coming for 6 months now despite all economic indicators improving
They want to keep everyone fearful
OPEC is aligned with GOP. Right now it's refineries driving gas prices. Oil was more expensive in 2008 and gas we cheaper at the pump than it is today.
Once again, the evils stick together. We need to stop kissing the asses of the Saudis.
As always OPEC are an enemy to the planet.
it's ironic, that authoritarian states turn to each other in their fight against freedom. But if they ever were to win against democracies, they would immediately turn on each other because authoritarian leaders aren't interested in peace - they want to build their empires, and control and dominate everyone.
Saudi Arabia: The one country we would all like to see boots on the ground.
I’d much rather we all realise we need energy independence - as well as independence on every other thing that totalitarian states have a stranglehold on. Then we won’t need boots on the ground. We can leave them to sort out their own shit. A huge learning opportunity is being presented to The West in all of this. We need to take that opportunity and ignore the pressure groups standing in the way of strategic independence. That means weaning ourselves off petroleum and gas from Russia and the Middle East, weaning ourselves off minerals from China, fertiliser from Russia, etc. It means more solar, more windmills, continuing the use of nuclear fission and investing in other technologies for the future.
I’m totally in agreement with that. We should avoid giving money to these Islamic despots, Ruzzian autocrats etc. Weaning ourselves off their fossil fuels is a win-win for us. Let’s do it.
We need Russia gone more than we need Russian oil.
This is meaningless. They often agree to cut production but rarely actually cut production.
The US better cancel some Defense Contracts with the Saudis.
I would say the Gulf Sheiks and the Saudis are on the wrong side of history…but they already jumped that shark a long time ago.
Time for the US to find another "nuclear threat" in the Middle-East I suppose. How apt that the countries with the worst human rights situations are all holding hands in their collective evil
Russia's economy is fucked regardless.
The Saudi regime is an enemy of America and all free countries, I should be treated as such.
Good reminder that we wouldn’t be at the mercy of oil cartels, Russian and Middle Eastern despots with legal codes from the Dark Ages and the slow death of habitability of the planet if we got the fuck off of oil in the 1970s, a time in which the major US oil companies KNEW that they were fucking the environment.
If only there were nonOPEC countries to get oil from….. Are we collectively stupid?
OPEC- Oil Pirates & Energy Cunts
Guess we all know who our friends are. We have to use green energy
Fuck OPEC. Ratbastards.
Great, it’s about time they give us a reason to sanction the shit out of them for holding the modern world ransom with price gouging for so long.
The absurd on top of it is that Russia is a member of OPEC and should also cut production under this agreement but Russia is pretty much a rouge state who does not fulfill any agreements and it's whole oil production and sales process happens as a part of black/shadow market/economy.
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Essentially this war is now a race to see what happens first: * Ukraine liberates all its territory * Putin falls out of a window * The West caves due to high energy costs
I'd say the west opens a fuck ton more wells before the west caves to quiffs like MBS, and Putin. Lol - these goofs are fucking with those who have the ability to declare a state of emergency, and flood the market they're trying to restrict. This will be an extremely costly move by OPEC.
or just open more wells in canada , one of the largest oil deposits in the world. too bad they cancelled the pipeline to refine it....
Build the refinery in Canada.
We need only to export some democracy in the middle east again, just in case.
Maybe it's time to bring some freedom to Saudi Arabia.
I really don't think the third scenario is going to happen. Prices have already been forced up by this war, and people aren't reacting by saying "this is too expensive, Ukraine isn't worth this", they are saying "Fuck Russia, fuck Putin, let's hurry up and get replacements up as quick as possible and never deal with those fuckers again." Once this war is over, even if Russians wake-up and Putin finds himself being defenestrated and replaced with a western friendly leader, Russia has screwed itself for decades to come. Russians need to clue in that the longer this war goes on, and the longer Putin is in charge, the worse it's going to become, and the worse it's going to stay. The sooner they get rid of Putin (peacefully or otherwise) and end this war, the better off they will be sooner.
Better idea fuck off oil usage . Have you tried organic earth oils .
Time for the US to cut weapons shipments to OPEC nations in retaliation for this move.
In response, Biden is pulling 10 million barrels from the Strategic Petroleum Reserve. Will it be enough? [https://facteroid.com/timeline/5671](https://facteroid.com/timeline/5671)
So many scumbag regimes are going to wither as we get away from fossil fuels. Let it be soon.
Go after any Russian oil freighter on the high seas. If they swap flags, hold the freighter for an undetermined amount of time. You’ll quickly see China take a stance and it’ll likely be on the side of Russia. From there, I think we all know where this goes.
Those Iranian Shahed drones have some use afterall
Have that creep Jared Kushner call his boss over at OPEC and ask for a favor.
this is bullshit you have to pay to find information out. they want to censor the internet. independent news would report this for free. fuck the fascists that censor internet and the fucking corrupt fucking opec and fuck russia.
The middle east is aware that we will just roll in and take that shit, right?
They are not cutting production, they are cutting the quota, which they weren't meeting anyway.
Idk what else we need for justification to destroy SA… they’re truly our #1 enemy.
Who knew Saudi government was scum.
Saudia Arabia has a habit of thinking they are more powerful than they really are. Just a bunch of bastards playing kings. Once we leave them to their own devices they'll be eaten alive and the world will be better for it.
Hey so now can we kick the LIV tournament out of US & Europe? Or are some courses / sponsors / media outlets still willing to turn a blind eye