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But how would they prevent other producers from re-entering the market once the price rises again? Capital requirements are not a huge barrier to entry when you
by codeflo 11y ago
But how would they prevent other producers from re-entering the market once the price rises again? Capital requirements are not a huge barrier to entry when you're competing against governments.
- TheOtherHobbes 11y agoBy crippling other competing governments - especially Iran, Russia, and Brazil, all of whom are struggling now - and trying to drive competing energy technologies out of the market. The problem is that Saudi wealth isn't infinite, and as a petro-feudal patronage state with a lot of internal stresses it's not obvious the Saudis can afford to see things through to the end.
- toomuchtodo 11y agoLets hope the House of Saud burns up its sovereign funds before they do permanent macroeconomic damage.