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Forums - General Discussion - Saudi Arabia outlines sweeping 15-year economic reform plan.

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Goatseye said:
Teeqoz said:
I don't get who would even want to purchase a stake in ARAMCO by now. Oil is just set for a long painfully slow decline, and unlike some other oil companies that are preparing for this decline by investing in other areas, ARAMCO is still just as reliant on oil as Saudi-Arabia's economy...

They have deposits to sustain their economy for another century. The problem is that they never prepared for post-oil glut from the West and oil sufficiency from Asian giants. 

Everything is happening at a fast pace when shale oil technology is rapdly evolving and spreading worldwide. 

They have deposits to sustain their economy for another century....

 

 

... If the world continues to be reliant on [Saudi] oil. Which it won't, in two ways. One of which, as you are saying is that other countries are increasing their own production, the other being a switch that has just about begun, but which will bring about a massive change in the next five to ten years, especially in western countries.



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Teeqoz said:
Goatseye said:

They have deposits to sustain their economy for another century. The problem is that they never prepared for post-oil glut from the West and oil sufficiency from Asian giants. 

Everything is happening at a fast pace when shale oil technology is rapdly evolving and spreading worldwide. 

They have deposits to sustain their economy for another century....

 

 

... If the world continues to be reliant on [Saudi] oil. Which it won't, in two ways. One of which, as you are saying is that other countries are increasing their own production, the other being a switch that has just about begun, but which will bring about a massive change in the next five to ten years, especially in western countries.

5-10 years? In the US oil companies and Republicans are fighting tooth and nail so fossil fuel can be more prevalence than green alternative.

Fossil fuel is gonna be common a good 20-30 years as it become cheaper.



Goatseye said:
Teeqoz said:

They have deposits to sustain their economy for another century....

 

 

... If the world continues to be reliant on [Saudi] oil. Which it won't, in two ways. One of which, as you are saying is that other countries are increasing their own production, the other being a switch that has just about begun, but which will bring about a massive change in the next five to ten years, especially in western countries.

5-10 years? In the US oil companies and Republicans are fighting tooth and nail so fossil fuel can be more prevalence than green alternative.

Fossil fuel is gonna be common a good 20-30 years as it become cheaper.

I obviously don't mean that fossil fuels will be fully phased out or anything like that. I just think you'll start to see a shift that'll only accelerate in the next few years. I mean, green (For lack of a better common name) is already seeing exponential growth. But I'll concede, 5-10 years is probably optimistic. 10-15 years is more like it.

 

The shift will certainly be big enough that ARAMCO will feel it.



Goatseye said:
Ruler said:

This 2 trillion $ estimate for saudi aramco is fake/bs. The US and Russia each produce the same amount of oil like saudi arabia, even if you count all their oil companies together it wont come close at 2 trillion in revenue or market cap.

The biggest oil field in Saudi Arabia is considred the 7th largest in the world. That's just one field.

And that field regularly produces up to 5 billion barrels of oil a year. 

How much does US and Russia produce?

All 3 produce 10 billion each



Ruler said:
Goatseye said:

The biggest oil field in Saudi Arabia is considred the 7th largest in the world. That's just one field.

And that field regularly produces up to 5 billion barrels of oil a year. 

How much does US and Russia produce?

All 3 produce 10 billion each

Can you give me a source for that number?



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Goatseye said:
Ruler said:

All 3 produce 10 billion each

Can you give me a source for that number?

http://www.tradingeconomics.com/country-list/crude-oil-production



The biggest problem to any modernization will be their backwards cultural views. Its a bit hard to bring your economy thus society to modern times when much of your mentality is stuck in the 7th century.

They lack education skills and any manufacturing, once again all will be held back due to their views and believes.

Also the value of oil will not raise to full fill their needs, honestly my next car is more likely then not will be electric or at least a hybrid that does 100 km on 5 liters.

Also any sort of political pull they have now due to oil is quickly eroding. None will give a rats about Saudi with out their oil.

Also (lots of also) none will care to invest in them, just not worth it.



This is interesting. The Kingdom has a long way to go socially, but I think a lot of people would be surprised at what economics can do about that.

I've said it before and I'll say it again, the middle east today (and especially SA) look a lot like Japan did 150 years ago.



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Pavolink said:
Stefan.De.Machtige said:
It will fail and that's a good thing. The house of Saud deserves to fall.

Why? And I mean, that's a real question because I don't know it. Will like to hear the story.

See some docs about "The Kingdom" which is one of the most secretive courtries around. The average people don't live in the towns or streets like you see in their propaganda.

SA will fall because they're sitting on a powerkeg of tribal and factional discontent. And their brand of islam which they try to export to everywhere is disgusting and needs to be abolished. The house of Saud is to their eyeballs in the IS stuff also. The world will be a better place when they go.



In the wilderness we go alone with our new knowledge and strength.

Stefan.De.Machtige said:
Pavolink said:

Why? And I mean, that's a real question because I don't know it. Will like to hear the story.

See some docs about "The Kingdom" which is one of the most secretive courtries around. The average people don't live in the towns or streets like you see in their propaganda.

SA will fall because they're sitting on a powerkeg of tribal and factional discontent. And their brand of islam which they try to export to everywhere is disgusting and needs to be abolished. The house of Saud is to their eyeballs in the IS stuff also. The world will be a better place when they go.

That stuff will implode from within and unfortunately will spill all over the ME, with a worse consequense that we'se seen thus far.

SA is the home of Wahhab. Until now they're comfortably being fed with millionaire social programs and subsidies that keeps everything under control.

Also, SA has a strong military, any uprising will be crushed from the within.