GRG 55 .........its a Bloodbath!

[GRG55]

Re: GRG 55 .........its a Bloodbath!

The first of the cutbacks in production aren't coming from shale wells. The marginal "stripper" wells in the heritage fields (East Texas, Oklahoma, parts of New Mexico, Kansas, Montana, SD and so forth) are the first out. Much of that is (has) already coming off the market. That will be the first wave of the USA production declines reported.

As for who capitulates first that will depend on who suffers the most pain and which can stand it the longest.

In that regard, everyone already knows what I think...

...As I posted before, what Russia and MbS just did was a head-shot to some of the OPEC producers.

https://www.bloomberg.com/news/artic...-spending-cuts

Saudi Arabia Looks at ‘Painful’ Measures, Deep Spending Cuts

May 2, 2020, 12:41 PM MDTUpdated on May 2, 2020, 2:32 PM MDT

• Finance minister changes tone to warn of severity of crisis
  
• Government seeing major loss of revenue from oil market crash
  

[shiny!]

Re: GRG 55 .........its a Bloodbath!

https://www.bloomberg.com/news/artic...-spending-cuts

Saudi Arabia Looks at ‘Painful’ Measures, Deep Spending Cuts

May 2, 2020, 12:41 PM MDTUpdated on May 2, 2020, 2:32 PM MDT

• Finance minister changes tone to warn of severity of crisis
• Government seeing major loss of revenue from oil market crash
  

It's like they formed a circular firing squad and shot their own country.

[Mega]

Re: GRG 55 .........its a Bloodbath!

More "Good news" for them

[lakedaemonian]

Re: GRG 55 .........its a Bloodbath!

https://www.bloomberg.com/news/artic...-spending-cuts

Saudi Arabia Looks at ‘Painful’ Measures, Deep Spending Cuts

May 2, 2020, 12:41 PM MDTUpdated on May 2, 2020, 2:32 PM MDT

• Finance minister changes tone to warn of severity of crisis
• Government seeing major loss of revenue from oil market crash
  

If the Saudis are hurting, the periphery of OPEC must be screaming.

If the Saudis catch a cold, the rest of OPEC gets COVID-19? Too soon?

The Iranians will be struggling, Russia’s government will be short on income, and even Venezuela’s President Maduro may lose a few KGs.

With no tourism and no Venezuelan sugar daddy, Cuba is going to be hurting worse than at any point since the collapse of Soviet aid.

The only positive I can think of is cardiovascular disease disappeared in Cuba in the early 90’s, when obesity became an endangered species due to economically induced caloric restrictions.

[lakedaemonian]

Re: GRG 55 .........its a Bloodbath!

https://www.bloomberg.com/news/artic...-spending-cuts

Saudi Arabia Looks at ‘Painful’ Measures, Deep Spending Cuts

May 2, 2020, 12:41 PM MDTUpdated on May 2, 2020, 2:32 PM MDT

• Finance minister changes tone to warn of severity of crisis
• Government seeing major loss of revenue from oil market crash
  

If the Saudis are hurting, the periphery of OPEC must be screaming.

If the Saudis catch a cold, the rest of OPEC gets COVID-19? Too soon?

The Iranians will be struggling, Russia’s government will be short on income, and even Venezuela’s President Maduro may lose a few KGs.

With no tourism and no Venezuelan sugar daddy, Cuba is going to be hurting worse than at any point since the collapse of Soviet aid.

The only positive I can think of is cardiovascular disease disappeared in Cuba in the early 90’s, when obesity became an endangered species due to economically induced caloric restrictions.

[jk]

Re: GRG 55 .........its a Bloodbath!

the next step after "economically induced caloric restrictions" is malnutrition. iirc it was rising food prices which set off the riots of "the arab spring." given both losses of income and disruption of supply and distribution of food, expect food prices to rise, expect riots around the world.

[GRG55]

Re: GRG 55 .........its a Bloodbath!

If the Saudis are hurting, the periphery of OPEC must be screaming.

If the Saudis catch a cold, the rest of OPEC gets COVID-19? Too soon?

The Iranians will be struggling, Russia’s government will be short on income, and even Venezuela’s President Maduro may lose a few KGs.

With no tourism and no Venezuelan sugar daddy, Cuba is going to be hurting worse than at any point since the collapse of Soviet aid.

The only positive I can think of is cardiovascular disease disappeared in Cuba in the early 90’s, when obesity became an endangered species due to economically induced caloric restrictions.

the next step after "economically induced caloric restrictions" is malnutrition. iirc it was rising food prices which set off the riots of "the arab spring." given both losses of income and disruption of supply and distribution of food, expect food prices to rise, expect riots around the world.

Large parts of the budgets in the OPEC nations are devoted to food, housing and health care subsidies. The drop in income is catastrophic for them.

Political instability is a serious potential problem for them. The usual response is the same as we are presently seeing in China; move ever closer to a total police state.
In addition there will be an exodus of skilled expatriates from the Gulf, along with an increasing outflow of domestic capital (which has been underway for some time already). This will seriously impact Dubai. Switzerland used to be the preferred destination; I understand now Singapore has replaced Zurich & Geneva since the EU started forcing the Swiss to compromise their secrecy laws.

[Mega]

Re: GRG 55 .........its a Bloodbath!

I recall the "distaste" of the Loony left when in the 1970's all our brightest people shipped out to:-

USA
Middle East
Far East

...& refused to be TAX Raped