No. Persian gulf countries will be fine. Canada will be fine (guess where we import most of our oil!) Nigeria and Russia will be shaken up, but they can’t really do anything. http://themessthatgreenspanmade.blogspot…
“Every decade or 15 years or so, the Saudis drop the price of oil to where the economic impact wipes out most of the projects in the world that could lead to an alternative for oil. Then, after the projects get canceled, the Saudis let the oil price drift back up.”
Ok, your wrong all over the board.
Saudi Arabia is probably they only one that won’t be affected. Russia, Iran, Venezuela, and others of the will get hurt. Though they all do have differing pain points. Russia and Iran are hurting now and we have been aggressive to them lately so they might have a vested interest in keeping prices up at all costs. Possibly at all costs.
On the non-opec side: Canada will get punished because the majority of their oil comes from oil sands. There are various thresholds of profitability and 65 is one of them. How it breaks down percentage wise per differing fields I have no clue. All oil is not created equal no matter what economists spreadsheets say. Also, I would imagine that mexico would be a silent cheerleader of a major cut. They have been in financial dire straights since cantarell stated crashing a few years back and I’m sure the price drop has been no picnic.
Finally, the reason the price of oil is dropping in not because SA has flooded the market. It’s because the global economy blew up. SA is now working in the interest of the west and not their best interest to block production cuts. Back in the 80s the last time SA flooded the market was an arrangement the Reagan adminstartion and them so they could bk Russia. Heck, Alt energy projects were considered communist back in the Reagan era I think.
