Saudi, Emirati Leaders Decline Calls With Biden During Ukraine Crisis

[Acadia]

Personally I despise the Saudi's for their deplorable human rights record, subjugation of women and lower social classes, and their cartel behavior with energy markets. We would be better off in North America if we produced our own energy and supplemented with Canadian oil and new tech.

The reality is we're going to need fossil fuels for the next 60 years whether we like it or not. Yes we need to develop renewables, but we're nowhere near replacing oil and gas in this world - Germany knows that. We should know that too.

Trump knew that.

 

[dobieg]

First sign of oil price relief: UAE says it wants OPEC to increase production

The oil market has been stretched incredibly thin, with few willing -- or able -- producers to replace Russia's taboo fossil fuel supply. Queue the United Arab Emirates, which suggested it may be coming to the rescue.

www.cnn.com

That will provide a little relief and is the reason oil futures fell $15/ barrel today but it's just a bandage. According to your story:

Last Wednesday, OPEC+ said in a statement that it would increase output by 400,000 barrels per day in April — a small fraction of Russia's 10 million barrels per day crude oil production.

From what I've been following the last several weeks, the max Saudi can ramp up is another million barrels a day. Add another half a million barrels if the Iran deal goes thru and maybe another half a million from other OPEC producers and the market is still short millions of barrels.

An oil and gas commentator on CNBC had an interesting solution this morning. Have our government suspend all the current regulatory barriers for oil and gas production and give producers a guaranteed government backed floor price. This would likely dramaically speed up exploration and production on our shores and take away the need to deal with some really bad governments we have no business dealing with.

 

[Slartibartfast]

That will provide a little relief and is the reason oil futures fell $15/ barrel today but it's just a bandage. According to your story:



From what I've been following the last several weeks, the max Saudi can ramp up is another million barrels a day. Add another half a million barrels if the Iran deal goes thru and maybe another half a million from other OPEC producers and the market is still short millions of barrels.

An oil and gas commentator on CNBC had an interesting solution this morning. Have our government suspend all the current regulatory barriers for oil and gas production and give producers a guaranteed government backed floor price. This would likely dramaically speed up exploration and production on our shores and take away the need to deal with some really bad governments we have no business dealing with.

Biden can just issue a DPA order for american oil companies to produce more.

 

[georgephillip]

It appears Yemen will become further victimized by the current attempt at regime change in Kyiv:
https://inews.co.uk/news/putin-war-...heat-prices-middle-east-africa-famine-1504866

"SANAA, March 2 (Reuters) - Potential disruption to global wheat supplies after Russia's invasion of Ukraine is raising concerns that war-torn Yemen's hunger crisis and food price inflation could deepen, with some Yemenis rushing to buy flour.

"The World Food Program (WFP) this week said the Ukraine crisis is likely to further increase fuel and food prices, especially grains, in import-dependent Yemen where food costs have more than doubled in many areas in the past year"

https://www.reuters.com/markets/fun...ies-worsening-yemen-hunger-crisis-2022-03-02/

 

[dobieg]

Biden can just issue a DPA order for american oil companies to produce more.

I don't believe the president can force oil and gas companies to expend billions of their own money for oil and gas exploration.


Oil and gas companies do have some drilled wells they don't have online or fully producing but from my understanding, this would represent a fraction of their current production. This especially holds true when prices are near record highs and these companies have likely already ramped up production.

 

[dobieg]

It appears Yemen will become further victimized by the current attempt at regime change in Kyiv:
https://inews.co.uk/news/putin-war-...heat-prices-middle-east-africa-famine-1504866

"SANAA, March 2 (Reuters) - Potential disruption to global wheat supplies after Russia's invasion of Ukraine is raising concerns that war-torn Yemen's hunger crisis and food price inflation could deepen, with some Yemenis rushing to buy flour.

"The World Food Program (WFP) this week said the Ukraine crisis is likely to further increase fuel and food prices, especially grains, in import-dependent Yemen where food costs have more than doubled in many areas in the past year"

https://www.reuters.com/markets/fun...ies-worsening-yemen-hunger-crisis-2022-03-02/

I'm afraid this is just the beginning and we're going to see this all around he world as poor countries will no be able to compete for a much smaller supply of wheat and corn at extreme prices.

 

[georgephillip]

I'm afraid this is just the beginning and we're going to see this all around he world as poor countries will no be able to compete for a much smaller supply of wheat and corn at extreme prices.

I agree.

https://www.reuters.com/markets/fun...ies-worsening-yemen-hunger-crisis-2022-03-02/

"The WFP (World Food Program) has since January cut rations for 8 million of the 13 million people it feeds a month, with warnings of more cuts.

"'We have no choice but to take food from the hungry to feed the starving,' WFP head David Beasley said.

"Sweden and Switzerland will co-host a donor conference on March 16 to fund the U.N.'s 2022 Humanitarian Response Plan, which in 2021 was only 58% funded."

I'm also beginning to suspect those of us who are neither hungry nor starving (yet), are about to see the biggest economic transformation of their lives: De-dollarization
MARCH 8, 2022

The American Empire Self-Destructs, But Nobody Thought That It Would Happen This Fast​

BY MICHAEL HUDSON
"During the half-century since the United States went off gold in 1971, the world’s central banks have operated on the Dollar Standard, holding their international monetary reserves in the form of U.S. Treasury securities, U.S. bank deposits and U.S. stocks and bonds.

"The resulting Treasury-bill Standard has enabled America to finance its foreign military spending and investment takeover of other countries simply by creating dollar IOUs.

"U.S. balance-of-payments deficits end up in the central banks of payments-surplus countries as their reserves, while Global South debtors need dollars to pay their bondholders and conduct their foreign trade."

 

[georgephillip]

'm afraid this is just the beginning and we're going to see this all around he world as poor countries will no be able to compete for a much smaller supply of wheat and corn at extreme prices.

I was unaware "progressive farmers" existed; however, I may have been wrong?

"There are probable events in life and there are improbable events.

"Ever since the pandemic erupted in early 2020, the improbable events have become more frequent.

"After the initial pandemic, we saw surprisingly large purchases of corn by China in 2020-21, widespread drought and wildfires in the western United States and Canada and drought in South America in early 2022.

"Most recently, on Feb. 24, 2022, Russia invaded Ukraine, an unthreatening, largely rural country the World Bank says has a GDP of $3,727 per capita."

https://www.dtnpf.com/agriculture/web/ag/news/article/2022/03/11/corn-wheat-show-different-responses

 

[Athanasius68]

Everyone... but Joe.

Why would that be?

So Much for Biden’s Promise to Make Saudi Arabia a ‘Pariah’ | National Review

In 2019, Biden said the Saudi government had ‘very little social redeeming value,’ but now he’s going to them, hat in hand.

www.nationalreview.com

No doubt they are also annoyed with the Biden Admin impending decision to give Iran a lot of money to fund terrorism, and to let them have nuclear weapons at some point in the future.

 

[HenryChinaski]

“Subjugation of women”

Silly, Saudi Arabia is a kingdom, everyone is subjugated, as in subjects of the King.

Says the guy that thinks it's cool for a man to rape his wife whenever he wishes.

 

[coyote505]

I'm afraid this is just the beginning and we're going to see this all around he world as poor countries will no be able to compete for a much smaller supply of wheat and corn at extreme prices.

Of course, the US could free up a substantial supply of corn, simply by doing away with gasohol. This fuel requires more energy to produce than it yields, but it REALLY supports the price of corn! It wouldn't exist without the Iowa caucuses. If Vermont were first on the schedule, we would be running our cars on maple syrup!