MBS would find himself on the receiving end of a cruise missile. It's not as if he would be missed by the rest of the al-Saud family he sidelined.
The US also has long-standing contingency plans to support Shia secessionism in the oil-rich Eastern provinces should the al-Saud stop doing as they are told. No invasion needed.
Nopec might have made some sense in the 90s or 00s. But with oil independence the effect the opec states have on the price of oil is muted so the time for this is passed for all intents and purposes.
Of course that’s absolutely what would happen, like Cuba, Iran, Iraq, Syria, Venezuela, Nicaragua, Panama. On reflection regime change hasn’t been successful without significant troops on the ground
This might be simply Russian state propaganda working, but wouldn't the
diversification of the world's currencies be a good thing? Remember how everyone
were afraid of the collapse of the US Dollar back in 2008, and then the similar
predictions about the Euro? (And we're hearing a lot about the Great Britain's
Pound these days.)
At some point a 13 year old kid in America is going to blame "the Russians" for why he didn't do his chores.
It's amazing how much stuff they get blamed for these days. I mean, what are you actually suggesting? That they've infiltrated Bloomberg? That they're controlling the Saudis?
I'm frankly just tired of all the evidence-free fearmongering about "The Russians", and at this point I just want to say, provide evidence or STFU.
> wouldn't the diversification of the world's currencies be a good thing?
It is not that simple. If an economy has a surplus, e.g. China, where does that surplus go? This is why we have a default world currency whether that be silver, gold or petro dollars.
When you work through it a bit more the more you realise a basket of currencies won't work, unless every currency is essentially the same. Capital is like water, it flows.
I would like to see discussion on how we can move on from the currencies we have to a measure of energy. Everything can be measured in energy terms, why not cut out the abstractions?
It would not be good for the US but may be that good for other countries. U.S would loose some of its financial control(i.e sanctions, monitoring individuals etc).
Anyway NOPEC will not happen as long as oil maintains is importance to the world economy. I doubt US is going to invade SA anytime soon.
The US-Saudi relationship is much less critical to the US now than it was 15 years ago.
Since the US shale oil revolution, the US is essentially energy independent.
Basically all that is left is that Iran is more poisonous in US politics than Saudi Arabia for reasons that relate to the Iranian revolution and the - moderately reasonable - fears that Israel has of Iran.
Yes I am sure many a tear would be shed in the ranks of American elites many of whom are Muslim, Arab businessmen if the US decided tomorrow that they did not like the Saudis anymore and no longer wanted them to exist.
Both the NOPEC passing and the Sauds ditching the dollar would be great, but as the article says "The chances of the U.S. bill known as NOPEC coming into force are slim and Saudi Arabia would be unlikely to follow through(...)"
People keep making comments like that. I really wish someone would explain to me how that attitude makes any sense at all, given that the US imports 40% of its oil from Saudi Arabia (see my comment with links below), and has core military operations based in that country.
Two others who wanted to stop selling oil for dollars were Sadam Hussein and Momar Gadahfi. In power for decades, then they announce they will sell oil for euros or a gold backed currency. Only a few years later from their announcement each one was dead.
> Saudi Arabia is threatening to sell its oil in currencies other than the dollar
Dumb threat. Streisand effect, too—this bill just went, for me, from something I didn't know about to something that's on my radar.
Go ahead, sell in other currencies. Your buyers will bake in the swap costs to hard currency. It isn’t like Mexican oil isn’t sold for pesos or North Sea oil for pounds sterling or kroner. The petrodollar hypothesis is a myth. The United States, now [EDIT: nearly] a net oil exporter, does not depend on Saudi oil.
> The petrodollar hypothesis is a myth. The United States, now a net oil exporter, does not depend on Saudi oil.
The notion that the United States does not depend on Saudi oil (or that it's energy independent) just because it's a net oil exporter is a myth. Not all crude oil is equal. The US has an abundance of light oil which it exports but it still imports a lot of heavy and sour oil from OPEC and Canada.[1]
Why shouldn't europe then buy oil directly in euros?
How does it make sense to first buy dollars and then buy oil if it is not mandatory? The saudis would happily take hard euros I suppose.
Last time the US was a net oil exporter was in the 70s, in fact it became an importer when the oil crisis. It has never regained that status since then.
[+] [-] fmajid|7 years ago|reply
The US also has long-standing contingency plans to support Shia secessionism in the oil-rich Eastern provinces should the al-Saud stop doing as they are told. No invasion needed.
[+] [-] snarfy|7 years ago|reply
[+] [-] mc32|7 years ago|reply
[+] [-] zaphirplane|7 years ago|reply
[+] [-] ainar-g|7 years ago|reply
[+] [-] AndyMcConachie|7 years ago|reply
It's amazing how much stuff they get blamed for these days. I mean, what are you actually suggesting? That they've infiltrated Bloomberg? That they're controlling the Saudis?
I'm frankly just tired of all the evidence-free fearmongering about "The Russians", and at this point I just want to say, provide evidence or STFU.
[+] [-] Theodores|7 years ago|reply
It is not that simple. If an economy has a surplus, e.g. China, where does that surplus go? This is why we have a default world currency whether that be silver, gold or petro dollars.
When you work through it a bit more the more you realise a basket of currencies won't work, unless every currency is essentially the same. Capital is like water, it flows.
I would like to see discussion on how we can move on from the currencies we have to a measure of energy. Everything can be measured in energy terms, why not cut out the abstractions?
[+] [-] thefounder|7 years ago|reply
Anyway NOPEC will not happen as long as oil maintains is importance to the world economy. I doubt US is going to invade SA anytime soon.
[+] [-] ilaksh|7 years ago|reply
Given that, is the NOPEC thing serious, and if so, why would people propose it knowing how critical the Saudi relationship is?
[+] [-] nl|7 years ago|reply
Since the US shale oil revolution, the US is essentially energy independent.
Basically all that is left is that Iran is more poisonous in US politics than Saudi Arabia for reasons that relate to the Iranian revolution and the - moderately reasonable - fears that Israel has of Iran.
[+] [-] devoply|7 years ago|reply
Yes I am sure many a tear would be shed in the ranks of American elites many of whom are Muslim, Arab businessmen if the US decided tomorrow that they did not like the Saudis anymore and no longer wanted them to exist.
[+] [-] sudoaza|7 years ago|reply
[+] [-] anthony_doan|7 years ago|reply
Maybe we can go off the oil addiction. Plus Saudi Arabis is very unsavory especially what they did to Jamal Khashoggi.
[+] [-] ilaksh|7 years ago|reply
[+] [-] tgraham|7 years ago|reply
[+] [-] devoply|7 years ago|reply
[+] [-] BubRoss|7 years ago|reply
[+] [-] caprese|7 years ago|reply
[+] [-] jessaustin|7 years ago|reply
[+] [-] wrong_variable|7 years ago|reply
We would be at 500 ppm if not for the irrational boycott of the West by King Faisal.
[+] [-] JumpCrisscross|7 years ago|reply
Dumb threat. Streisand effect, too—this bill just went, for me, from something I didn't know about to something that's on my radar.
Go ahead, sell in other currencies. Your buyers will bake in the swap costs to hard currency. It isn’t like Mexican oil isn’t sold for pesos or North Sea oil for pounds sterling or kroner. The petrodollar hypothesis is a myth. The United States, now [EDIT: nearly] a net oil exporter, does not depend on Saudi oil.
[+] [-] tsyd|7 years ago|reply
The notion that the United States does not depend on Saudi oil (or that it's energy independent) just because it's a net oil exporter is a myth. Not all crude oil is equal. The US has an abundance of light oil which it exports but it still imports a lot of heavy and sour oil from OPEC and Canada.[1]
[1]: https://www.eia.gov/tools/faqs/faq.php?id=727&t=6
[+] [-] fxj|7 years ago|reply
[+] [-] anonymou2|7 years ago|reply