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The article talks about how Saudi Arabia is not reinvesting it's profits on expanding oil extraction and chalks it onto higher costs to extract said oil without
by rdedev 4y ago
The article talks about how Saudi Arabia is not reinvesting it's profits on expanding oil extraction and chalks it onto higher costs to extract said oil without any proof. Another completely valid explanation is that the Saudi govt knows they can make pretty good profits for some time if they don't increase supply
- bequanna 4y agoLucky for the Saudis (and other unfriendly nations) the current regime in the US has handed them all the pricing power as the US Gov't does everything possible to hinder domestic exploration/production.
- Ekaros 4y agoAnd it is not like oil goes bad when it is in ground. Much better to make more money on the cheap to extract stuff and then later some money with more costly to extract oil. Also there is consideration what to use the extra money now. If there really isn't need for it, why even get it.