Sunday, June 21, 2015

via @nafeezahmed, US-Saudi desperate power grab as cheap oil runs out

Middle East Eye: "Since 2000, this has meant that the oil industry’s investments have risen by 180 percent, generating a puny global oil supply increase of just 14 percent – two-thirds of which comprises unconventionals.

Therefore, Saudi Arabia’s accelerated supply output to keep prices low cannot last for long. In 2012, a Citigroup report predicted that more and more of Saudi oil production would be allocated to meeting rapidly rising domestic electricity demand, forcing Saudi Arabia to increasingly reduce its exports.

By 2030, within just 15 years, the kingdom’s exports would drop to zero, making it a net importer. The report thus showed that Saudi Arabia’s capacity to maintain its high level of exports onto global markets is likely to end well before then in coming years."

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