Fossil Fuel Divestment - Saudis Want Out

[TheTalkingMule]

After the massive dip in 2015, the Saudis made a very logical move when they invited Wall Street hedge fund managers to their OPEC meeting in in March of 2017. In those meetings they developed and adopted the strategy of limiting exports to the US in an effort to make global markets look oversupplied ahead of an IPO. But Wall Street will always sell you out once your usefulness has run it's course.

Now they'll reap the other end of that Wall Street bargain. It's not a coincidence this is happening just as all TSLA shorts are being forced to cover. These unimaginative hedge fund dbags only have one move. Good luck MBS from all of us in Tesla-land!

After Aramco’s Record IPO, Traders Now Ask How to Short Shares

Bloomberg - Are you a robot?

 

[iPlug]

Talk about being on the wrong side of history:

Saudi Arabia fund dumped nearly all of its Tesla shares in the fourth quarter before the rally

 

[nwdiver]

Talk about being on the wrong side of history:

Saudi Arabia fund dumped nearly all of its Tesla shares in the fourth quarter before the rally

Could be worse.... they could have had a short position

 

[traxila]

So sweet the Saudis are sucking wind. So glad they sold.

 

[mrbulk]

Talk about being on the wrong side of history:

Saudi Arabia fund dumped nearly all of its Tesla shares in the fourth quarter before the rally

...‘tupid...

 

[SageBrush]

Talk about being on the wrong side of history:

Saudi Arabia fund dumped nearly all of its Tesla shares in the fourth quarter before the rally

If I am reading correctly, the Saudi fund profited handsomely from its TSLA investment, just not as much as they could have if they had held on another month.

 

[iPlug]

Meanwhile, this:

Saudi Arabian Oil Co

 

[miimura]

If I am reading correctly, the Saudi fund profited handsomely from its TSLA investment, just not as much as they could have if they had held on another month.

Did it occur to anyone that the Saudi PIF selling their shares helped suppress the share price during that period? Conversely, if they were selling into this rally, that it would not have gone so high with the additional supply of their shares available?

 

[SageBrush]

Did it occur to anyone that the Saudi PIF selling their shares helped suppress the share price during that period? Conversely, if they were selling into this rally, that it would not have gone so high with the additional supply of their shares available?

Yep.

Or on the flip side, if the PIF has decided to become LONG that the price might be even higher today.

 

[Brando]

So sweet the Saudis are sucking wind. So glad they sold.

AND sucking up sun light. I guess the do use solar electric power to pump up crude oil. Wind mills may suffer from constant sand blasting.

Global Oil Companies are entangled with Middle East governments (dictators?). Of the 8 wars US currently fighting do any of those countries NOT have oil reserves worth fighting over? Trump last night in State of the Union admitted US spends $2.2 Trillion/year on Military (and now/soon includes Space Force. Most all empires end with the help of over spending on the Military.

 

[traxila]

AND sucking up sun light. I guess the do use solar electric power to pump up crude oil. Wind mills may suffer from constant sand blasting.

Global Oil Companies are entangled with Middle East governments (dictators?). Of the 8 wars US currently fighting do any of those countries NOT have oil reserves worth fighting over? Trump last night in State of the Union admitted US spends $2.2 Trillion/year on Military (and now/soon includes Space Force. Most all empires end with the help of over spending on the Military.

This is probably the biggest obstacle we face to moving to a new renewable world. Oil companies and Oil states may soon find themselves with nothing to lose. How do they respond?

 

[wdolson]

AND sucking up sun light. I guess the do use solar electric power to pump up crude oil. Wind mills may suffer from constant sand blasting.

Global Oil Companies are entangled with Middle East governments (dictators?). Of the 8 wars US currently fighting do any of those countries NOT have oil reserves worth fighting over? Trump last night in State of the Union admitted US spends $2.2 Trillion/year on Military (and now/soon includes Space Force. Most all empires end with the help of over spending on the Military.

I've never seen anything that Afghanistan has any appreciable oil reserves. But Bush didn't want to go into Afghanistan in the first place because there was no oil there. The CIA forced his hand.

Reagan ran the USSR into the ground by forcing them to over spend on military. The US is doing the same, but it's an unforced error. Most of the money spent on the military is completely wasted. Congress has authorized building a lot of military hardware the DoD has said they don't want. It's probably the first time in US history the military has been turning down things.

 

[navguy12]

I've never seen anything that Afghanistan has any appreciable oil reserves. But Bush didn't want to go into Afghanistan in the first place because there was no oil there. The CIA forced his hand.

Reagan ran the USSR into the ground by forcing them to over spend on military. The US is doing the same, but it's an unforced error. Most of the money spent on the military is completely wasted. Congress has authorized building a lot of military hardware the DoD has said they don't want. It's probably the first time in US history the military has been turning down things.

I think many factors caused the USSR to be run into the ground, one of them being the Chernobyl disaster.

 

[wdolson]

I think many factors caused the USSR to be run into the ground, one of them being the Chernobyl disaster.

There were multiple factors, but Reagan's arms race contributed.

 

[Brando]

I've never seen anything that Afghanistan has any appreciable oil reserves. But Bush didn't want to go into Afghanistan in the first place because there was no oil there. The CIA forced his hand.

Reagan ran the USSR into the ground by forcing them to over spend on military. The US is doing the same, but it's an unforced error. Most of the money spent on the military is completely wasted. Congress has authorized building a lot of military hardware the DoD has said they don't want. It's probably the first time in US history the military has been turning down things.

Try internet search: afghanistan unocal
one good article: Taliban Oil
Few can imagine how large the oil industry actually is - I think I remember $175,000,000,000. per DAY yes billions.
side note: Bush family is big into oil investments, right?

President Dwight D. Eisenhower's farewell address, known for its warnings about the growing power of the "military-industrial complex," was nearly two years in the making. Yes, Ike himself worked on this speech for 2 years. That is how important he thought it was.
Eisenhower's Farewell Address : A Warning On The Military-Industrial Complex

Just how bad is military waste?

By almost any measure, the system is broken. Consider this: The Defense Department spent at least $46 billion between 2001 and 2011 on a dozen weapons systems that never even entered production...
Slow and Steady is Losing the Defense Acquisition Race

 

[wdolson]

Try internet search: afghanistan unocal
one good article: Taliban Oil
Few can imagine how large the oil industry actually is - I think I remember $175,000,000,000. per DAY yes billions.
side note: Bush family is big into oil investments, right?

President Dwight D. Eisenhower's farewell address, known for its warnings about the growing power of the "military-industrial complex," was nearly two years in the making. Yes, Ike himself worked on this speech for 2 years. That is how important he thought it was.
Eisenhower's Farewell Address : A Warning On The Military-Industrial Complex

Just how bad is military waste?

The USGS estimated about 80 million barrels of oil in the ground in Afghanistan, but none of it has been developed and I doubt it will be worth the trouble to develop it any time soon. By comparison the USGS estimates almost 2X the reserves in Poland and the Netherlands. Afghanistan is way down the list of priorities for oil companies.
List of countries by proven oil reserves - Wikipedia

Afghanistan does have other mineral wealth. The story of the estimated worth of their mineral wealth has been around a few years:
Rare Earth: Afghanistan Sits on $1 Trillion in Minerals

The US has been wasting money on weapons systems for some time. Reagan's Star Wars project wanted to make a laser capable of shooting down satellites. When I was at Boeing (commercial side) we had a big influx of people from the military side after the end of the cold war. One guy told me he had worked on that laser and it took them years but they finally got it working just before the government shut down the project.

There are also a lot of US weapons systems that went into production or almost did that were effectively useless. I could go on, but these posts are already at risk to getting moved to snippiness.

 

[iPlug]

The slide continues:

Saudi Arabian Oil Co

 

[wdolson]

The entire oil market is in trouble. The Saudis are probably in the best shape because they can produce oil so cheaply. But everybody is going to take a hair cut, and some companies are probably going to be forced into mergers.

 

[ggies07]

The entire oil market is in trouble. The Saudis are probably in the best shape because they can produce oil so cheaply. But everybody is going to take a hair cut, and some companies are probably going to be forced into mergers.

I've been waiting years for this...is it finally happening? Can we celebrate?..........

 

[TheTalkingMule]

The entire oil market is in trouble. The Saudis are probably in the best shape because they can produce oil so cheaply. But everybody is going to take a hair cut, and some companies are probably going to be forced into mergers.

In a vacuum it appears that the Saudis are best equipped, but reality is they're teetering on chaos. They need Brent crude at $80/barrel in order to maintain their budget. And it's not a budget like Philadelphia where you just cut services and deal with it when there's a shortfall. This is a totalitarian dictatorship much like the ones that fell in the Arab Spring.

The only thing keeping the kids from rioting in the streets is the massive amount of money handed to them every month. If that money dries up, as it already is, then the stranglehold on power become unsustainable and the Saudi royal family loses control.

This is kind of already happening and is why we see little non-monetary treats being given out, like women being allowed to go to movies. IMO the moves this past weekend pretty much guarantees that Brent stays depressed for 18 months and Saudi Arabia as we know it crumbles.

This is why I was somewhat OK voting for Hillary after Bernie lost the primary. We could really use her skill set these next few years.