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101 comments on Forecasts on Saudi Arabia liquids production

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noutram on July 29, 2008 - 6:01am Permalink | Subthread | Comments top

The Oil ELM in a nutshell/Banana 'Skin':

I live in a Banana Republic. Almost from the day I was born my mother fed me Bananas and I love them and cannot live without my daily Banana. Life is tough here in Bananaland but at least the government gives us almost free Bananas so life ain't so bad...

...and in a few years:

Just lately the government has said that OUR Bananas must go up in price as we are eating too many and need to send more to the rich Capitalist West. The cost of MY Bananas are going through the roof!! I cannot afford my daily Banana any more! Life is tough and my Bananas are going up as well! I AM UP IN ARMS!!

:o)

On a more serious note I read that KSA was investing heavily in heavy-oil refining capability I wonder if this has been taken into account?

Nick.

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neal on July 29, 2008 - 11:28am Permalink | Subthread | Parent | Comments top

You have hit the nail (conundrum) on the head. The bananoil republics (and shiekhdoms)have given cheap subsidized oil to keep the masses happy. To not cut the subsidies means less (and more expensive) oil to supply the rich capitalist west (and China etc)as more is wasted locally. But if the masses don't get their daily fix of cheap bananoil then they will be up in arms (and the revolutions will bring out the radical elements- usually anti western) with a jump in oil prices on the turmoil.

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Iconoclast421 on July 29, 2008 - 2:26pm Permalink | Subthread | Parent | Comments top

I'm sure they would take issue with your use of the word "waste"

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neal on July 29, 2008 - 9:42pm Permalink | Subthread | Parent | Comments top

It's waste, whatever the commodity. An example, my relatives in Egypt buy subsidized bread so cheaply that they feed chickens with fresh bread. Bakers frequently ensure a batch of bread burns and is unsuitable for humans as the price for 2nd grade bread is higher than what they can sell fresh bread for. A loaf costs less than a cent (5 piastres), the same price that I paid 20 years ago when the Egyptian pound was near parity with the dollar and wheat was a quarter the price of now. It was subsidized then and is still subsidized even though the value of the flour is up twentyfold. Consumption is also up (higher population and more consumers substituting for more expensive food).
Egypt has the same problem with subsidized fuel. Subsidized 80 octane (about 80 cents/gallon) demand is way up and shortages have caused riots and knife fights at the pumps in Cairo last week

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Iconoclast421 on July 29, 2008 - 2:36pm Permalink | Subthread | Parent | Comments top

Is anyone else having problems with this site not loading, having to refresh half a dozen times, having to wait an average of 2 minutes for a page to finally load, etc?

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Iconoclast421 on July 29, 2008 - 2:34pm Permalink | Subthread | Parent | Comments top

I'm having serious problems with this site being intermittent...

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Iconoclast421 on July 29, 2008 - 2:36pm Permalink | Subthread | Parent | Comments top

Is anyone else having problems with this site not loading, having to refresh half a dozen times, etc?

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TJ on July 29, 2008 - 11:50am Permalink | Subthread | Parent | Comments top

Not quite correct. Subsidized or not, if you use your bananas in-country you boost your local economy.

The definition of a banana republic is a government that stiffs its citizens of their bananas to sell more to outsiders and keeps the money. The ELM model would be the antithesis of that.

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luisdias on July 29, 2008 - 1:04pm Permalink | Subthread | Parent | Comments top

You are the one misunderstanding, TJ. If a country does not stiffs their own people to sell their bananas to the USofA, then, by definition, it is a banana republic, and mainly, just asking for it. Just let me grab my gun and let's go get our fucking bananas!

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ptoemmes on July 29, 2008 - 2:19pm Permalink | Subthread | Parent | Comments top

Don't give W any ideas...

Banana Wars

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TJ on July 29, 2008 - 2:49pm Permalink | Subthread | Parent | Comments top

We are, after all, at Peak Bananas, what with the Cavendish variety being killed off by fungus.

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Safi on July 29, 2008 - 9:41pm Permalink | Subthread | Parent | Comments top

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Mamba on July 30, 2008 - 4:23am Permalink | Subthread | Parent | Comments top

Bumper sticker: "Why are our bananas growing on their banana trees?"

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101 comments on Forecasts on Saudi Arabia liquids production

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