Saudis Have Lost the Oil War
This is the other “All in the Family” TV series
The humiliation of the Saudi ground military efforts against Yemen has become the gold standard of the all-for-show, palace guard military. Saudis in the ranks are there for the paycheck only, and no fighting spirit is to be found, even with an autopsy.
They abhor work, and fighting is definitely that, plus being something for slaves and suckers to perform. Hence we saw the sudden major influx of mercenary forces to protect the royal family from a continuing stream of body bags coming back from the Yemen war.
The PNAC material is something that Engdahl has mined endlessly as article filler, something he needs to throttle back on a bit. But it is made up for with his excellent material on how US shale oil production has remained strong, with the low oil prices that were supposed to trigger a deluge of bankruptcies and crashing production.
It’s a great story, worth the read for that material alone, as William does monitor the oil markets carefully, not only the geopolitical stuff but the nuts and bolts well counts, drilling times and daily productions. We need such people to take us behind the curtain for a peek now and then to combat the smoke and mirrors games that get run us all the time… Jim W. Dean ]
__________Welcome to the flying dining room with lizard green chairs- Saudi style
Poor Saudi Arabia. They don’t realize it yet but they have lost their oil war. The war in its current phase began in September, 2014, when the dying King Abdullah and his Minister of Petroleum, Ali Al-Naimi, told US Secretary of State John Kerry they would gladly join Washington in plunging world oil prices.Kerry with the late King Abdullah
It became clear that the main Saudi motive was to eliminate the new growing challenge to their control of world oil markets by forcing prices so low that the US shale oil industry would soon go bankrupt.
For Kerry and Washington the focus, of course, was to economically cripple Russia in the wake of new US sanctions by damaging their revenues from export of oil. Neither achieved their aim. Now, however, it’s clear that Saudi Arabia, which along with Russia is the world’s largest oil producer, is going down a dark road to ruin. Washington seems more than happy to cheer them on.
The long-term Washington strategy since at least 1992, well before September 11, 2001 and the Washington’s declaration of its War on Terror, has been by hook or by crook, by color revolution or outright invasion, to directly, with US “boots-on-the-ground,” militarily control the vast oil reserves and output of the major Arab OPEC oil countries. This is a long-standing institutional consensus, regardless who is President.
Cheney: ‘Where the Prize Ultimately Lies’Cheney 1998
To appreciate the long-term strategic planning behind today’s chaotic wars in the Middle East, there is no better person to look at than Dick Cheney and his statements as CEO of the then-world largest oilfield services company. In 1998, four years after becoming head of Halliburton, Cheney gave a speech to a group of Texas oilmen.
Cheney told the annual meeting of the Panhandle Producers and Royalty Owners Association in reference to finding oil abroad, “You’ve got to go where the oil is. I don’t think about it [political volatility] very much.”
During his first five years as CEO of Halliburton, Cheney took the company from annual revenues of $5.7 billion to $14.9 billion by 1999. Halliburton foreign oilfield operations went from 51% to almost 70% of revenues in that time.
Dick Cheney clearly looked at the global oil picture back then more than most. In September 1999 Cheney delivered a speech to the annual meeting of an elite group of international oilmen in London. One section is worth quoting at length:
“By some estimates there will be an average of two per cent annual growth in global oil demand over the years ahead along with conservatively a three per cent natural decline in production from existing reserves. That means by 2010 we will need on the order of an additional fifty million barrels a day. So where is the oil going to come from?
Governments and the national oil companies are obviously controlling about ninety per cent of the assets. Oil remains fundamentally a government business. While many regions of the world offer great oil opportunities, the Middle East with two thirds of the world’s oil and the lowest cost, is still where the prize ultimately lies, even though companies are anxious for greater access there, progress continues to be slow.”
The PNAC Warplan
Now the new plan seems to be to give Saudi Arabia “enough rope to hang herself” as that Soviet hangman, V. I. Lenin, was fond of saying.