Companies, New Victims of Saudi Policy
شرکت های نفتی قربانیان تازه سیاست عربستان
Saudi's have a big pocket and can endure losses due to the fall of oil prices for ten years hoping to achieve their political goals. The Saudi Arabia's oil policy has been extensively discussed in the last 9 months (1).
In addition to Iran, Russia and fracking companies, US and UK traditional oil firms such as ConocoPhillips, Occidental Petroleum and Royal Dutch Shell are the new victims of Saudi's outpouring of oil into the market (2).
If five plus one negotiations with Iran succeeds, return of Iran to the oil market may no longer be viewed as a threat to profitability of Big Oil anymore. In other words, it seems like Saudi's policy is having more unintended consequences than first thought. New regional and global lineups are being formed (3).
Drastic measures like throwing sugar in the sea during the crisis of overproduction in 1930's are still fresh in memories. Oil companies do not have deep pockets like the Saudi's to endure loss without blinking and will soon need to be bailed out as we saw in 2001 under the Bush administration or will go their own way.
Hoping for a democratic and secular futurist republic in Iran,
Sam Ghandchi, Editor/Publisher
January 29, 2015
1. Saudi Cheap Oil to Keep US in Iraq and Syria
2. Conoco, Occidental and Shell cut 2015 budgets on crude
3. Global Lineups at the Present