The Saudis are doing what Actor Matt Damon couldn’t do with his anti-fracking hysteria film “The Promised Land.” The film, which died a painful death at the box office, was funded by the United Arab Emirates.
EXCLUSIVE – Privately, Saudis tell oil market: get used to lower prices
By Ron Bousso and Joshua Schneyer
LONDON/NEW YORK Mon Oct 13, 2014 4:30am IST
LONDON/NEW YORK Oct 12 (Reuters) – Saudi Arabia is quietly telling oil market participants that Riyadh is comfortable with markedly lower oil prices for an extended period, a sharp shift in policy that may be aimed at slowing the expansion of rival producers including those in the U.S. shale patch.
Some OPEC members including Venezuela are clamoring for urgent production cuts to push global oil prices back up above $100 a barrel. But Saudi officials have telegraphed a different message in private meetings with oil market investors and analysts recently: the kingdom, OPEC’s largest producer, is ready to accept oil prices below $90 per barrel, and perhaps down to $80, for as long as a year or two, according to people who have been briefed on the recent conversations.
The discussions, some of which took place in New York over the past week, offer the clearest sign yet that the kingdom is setting aside its longstanding de facto strategy of holding prices at around $100 a barrel for Brent crude in favor of retaining market share in years to come.
The Saudis now appear to be betting that a period of lower prices – which could strain the finances of some members of the Organization of the Petroleum Exporting Countries – will be necessary to pave the way for higher revenue in the medium term, by curbing new investment and further increases in supply from places like the U.S. shale patch or ultra-deepwater, according to the sources, who declined to be identified due to the private nature of the discussions.
The resulting decline in Brent crude futures prices has resulted in a similar decline in US regular gasoline prices.
Here is Matt Damon bloviating about the horrors of fracking. On the other hand, here is an alternative view of fracking.
Suffice it to say, the Saudis are achieving anti-fracking agenda by using the global marketplace and increasing oil production to lower prices, both in the North Sea (Brent) and the USA.