Decomposed>
Who do you suppose is footing the bill for what the Saudis are doing? The Saudis aren't doing it out of the goodness of their hearts - so someone must be paying them. Directly or indirectly (The IMF? Military contracts? The U.N.? The W.H.O.?) it's got to be the United States.
The theory that the Saudis are targeting the U.S. fracking industry doesn't hold much water with me. How does it help? The Saudis lose money, the U.S. fracking industry loses money, and when oil prices go back up, U.S. fracking will resume - if it's profitable, anyway, which I'm not so sure it ever was.
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De,
I hang out at a site called 'Strategy Page'. They are
more military oriented than anything else.
That site is what tells me that the Saudi's are very
afraid of Iran. Hurting the Russians is a pleasant
side effect.
Strategy Page also tells me that the American Frackers
are 'hunkering down' - mothballing their stuff and
waiting for the price of oil to go back up. Which,
eventually, it will.
Who's paying for it? The site also tells me that the
Saudi's have a LOT of reserve money laying around -
they can keep it up for a few more years . . .
https://www.strategypage.com/qnd/iran/articles/20151207.aspx
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The Saudis say their oil price war is directed at American frackers but savvy Iranians (especially those with kin in America) know that is a lie or a delusion on the part of the Saudis. The American oil industry has proved itself very resilient and innovative since the Americans invented the oil business in the 19th century. The frackers, as expected, shut down much of their production as it got unprofitable but are hibernating, not dying. Iranians believe they are the real target of the Saudi oil price campaign because low oil prices (from a 2014 peak of $120 a barrel/159 liters to less than $40 now) keeps Iran weak. At the same time the math indicates that the Saudis cannot keep it up for more than another five or ten years. At that point the Saudis run out of cash reserves and borrowing ability. The Saudis are betting that Iran will crack first while the Iranians believe they can outlast the Saudis. Place your bets.
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(Entire article is at the link. Zim.)
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