Comment 106724

By KevinLove (registered) | Posted December 08, 2014 at 19:41:55 in reply to Comment 106720

Mike wrote:

"OPEC is working to stay relevant."

Kevin's comment:

In my opinion, Saudi Arabia is not pumping every barrel it can because of any sophisticated market strategy. The Saudi rulers are pumping every barrel they can in order to get quick cash to keep bribing the population. Particularly buying off their Islamic fundamentalist revolutionary elements.

There is a fair amount of evidence that Saudi oil production is over its peak and that the Saudi government has responded by using imprudent production methods that give a quick hit at the cost of doing serious long-term damage to their productive capacity.

One look at the age of the current Saudi rulers shows that their motto is "Apres moi, le deluge" for exactly the same reason that Louis XIV uttered those famous words.

An Islamic fundamentalist government would, of course, have no problem raising money by imposing taxes upon the people. And has very effective ways of dealing with political dissent.

Comment edited by KevinLove on 2014-12-08 19:45:40

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