Islamic State: 2014 Archives

SAUDIS ATTACKING U.S. OIL PRODUCTION, RISKING DISASTER AND CHAOS IN THE ISLAMIC WORLD.

Saudi Arabia, U.S. friend or enemy?

The royal family of Saudi Arabia has been "educating" Muslims worldwide for decades now that 7th Century Islam is the Islam for all times and more and more Muslims are becoming convinced this is so (witness the Islamic State). What the Saudis didn't bank on was the possibility that 7th Century true believers would one day be looking to attack and displace them.

Despite the U.S. being aware of the Islamic supremacism the Saudis were promoting to one and all, the U.S. needed Saudi and Gulf States oil, so the Islam originalists got a pass and the U.S. did not object to the Saudis' propaganda offensive.

Also, the Saudis didn't anticipate the resurgence of the U.S. as a world leader in oil production, meaning little or no reliance on Middle East oil. It might also mean a U.S. ready to blow the whistle on the Saudis stoking the flames of radical Islam.

Not good, the Saudis concluded. They needed a plan.

Producing oil by fracking is expensive, multiples more so than conventional drilling for Saudi oil. The plan: Drive world oil prices down and cripple the growth of American oil development and retain the U.S. as an oil-dependent and objection-free client.

So that is what is going on with falling oil prices. The cartel of oil producing countries led by Saudi Arabia (OPEC) have decided not to reduce production in the face of a world oil glut.

Though the Saudis deny it, it seems clear the Saudis are trying to bankrupt a large part of the American oil fracking industry. Their hope is that prices will drop so low the ability of the U.S. to produce its own oil will be substantially reduced and OPEC will be back in the driver's seat setting world oil prices. In other words, the Saudis hope to destroy this new competition by driving large segments of it out of business.

Not so fast, one British analyst says. The Saudis have misread the situation. It is the OPEC oil producing countries that need high prices more than the U.S. fracking industry does. And an even greater expansion of the Islamic State into oil-rich and unstable Libya and Algeria could be the result if those governments are deprived of the money they need to operate and subsidize their people's purchases of basics such as gasoline and bread.

Russia and Venezuela also need high oil prices to meet the revenue needs of their governments to fund the subsidies paid to their populations.

Just maybe the U.S. fracking industry can survive low oil prices and the Middle East, North Africa -- and Europe --will be the losers in the Saudis' high stake game.

Saudis risk playing with fire in shale-price showdown as crude crashes
A deep slump in prices might heighten geostrategic turmoil across the Middle East

London Telegraph
By Ambrose Evans-Pritchard

oil_1911611b.jpg


Saudi Arabia and the core Opec states are taking an immense political gamble by letting crude oil prices crash to $66 a barrel, if their aim is to shake out the weakest shale producers in the US. A deep slump in prices might equally heighten geostrategic turmoil across the broader Middle East and boomerang against the Gulf’s petro-sheikhdoms before it inflicts a knock-out blow on US rivals.

Caliphate leader Abu Bakr al-Baghdadi has already opened a “second front” in North Africa, targeting Algeria and Libya – two states that live off energy exports – as well as Egypt and the Sahel as far as northern Nigeria. “The resilience of US shale may prove greater than the resilience of Opec,” said Alistair Newton, head of political risk at Nomura.

Chris Skrebowski, former editor of Petroleum Review, said the Saudis want to cut the annual growth rate of US shale output from 1m barrels per day (bpd) to 500,000 bpd to bring the market closer to balance. “They want to unnerve the shale oil model and undermine financial confidence, but they won’t stop the growth altogether,” he said.
There is no question that the US has entirely changed the global energy landscape and poses an existential threat to Opec. America has cut its net oil imports by 8.7m bpd since 2006, equal to the combined oil exports of Saudi Arabia and Nigeria.

The country had a trade deficit of $354bn in oil and gas as recently as 2011. Citigroup said this will return to balance by 2018, one of the most extraordinary turnarounds in modern economic history.

“When it comes to crude and other hydrocarbons, the US is bursting at the seams,” said Edward Morse, Citigroup’s commodities chief. “This situation is unlikely to stop, even if prevailing prices for oil fall significantly. The US should become a net exporter of crude oil and petroleum products combined by 2019, if not 2018.”

Opec has misjudged the threat. As late as last year, it was dismissing US shale as a flash in the pan. Abdalla El-Badri, the group’s secretary-general, still insists that half of all US shale output is vulnerable below $85.

Continue reading....

|

THE RULING CLASS PRESCRIPTION FOR DEALING WITH THE ISLAMIC STATE WILL FAIL.

Willful blindness in Washington.

No one in the ruling class of either party wants to face up to the truth of what it will take to defeat and destroy ISIS. The generals are the only sane ones.

Washington’s Ruling Class Is Fooling Itself About The Islamic State

Washington's foolish approaches to the Islamic State will not destroy them or discourage others from following in their footsteps.

Angelo Codevilla
September 19, 2014

The American people’s reaction to Muslim thugs of the “Islamic State” ritually knifing off the heads of people who look like you and me boils down to “let’s destroy these bastards”—which is common sense. But our ruling class, from President Obama on the Left to The Wall Street Journal on the Right, take the public’s pressure to do this as another occasion for further indulging their longtime preferences, prejudices, and proclivities for half-measures in foreign affairs—the very things that have invited people from all over the planet to join hunting season on Americans.

Continue reading..

|
WE ARE THE PARTY OF LINCOLN.
WE STAND FOR FREEDOM AND EQUAL OPPORTUNITY FOR ALL.



Contact: Diane Bronsdon 508 945 9218
C R Facebook
GREATEST THREATS TO THE U.S.
ISLAMIC SUPREMACISM
ISLAMIC TERRORISM
RADICAL ISLAMIC IMMIGRATION
ISLAMIC HATRED OF CHRISTIANS AND JEWS
Watch
To help us do our part to keep America strong and well informed, just click below. Donate Now!

News
Syndication
rdf
rss2
atom

Links
Michael O'Keffe District Attorney
Leo Cakounes Barn.Cty Commish
Sheriff Cummings
Hot Air
Legal Insurrection
National Review
Power Line
Pajamas Media

Causes:

Semper Fi Fund
Cape Cod Cares for Our Troops
Wounded Warrior Family Support
New England Center and Home for Veterans
Search
Chatham Info
Archives
Monthly Archive

Category Yearly Archives
Archives

Categories