Posted December 22, 2014
Why Saudis Decided Not to Prop Up Oil
Wall Street Journal: In early October, Saudi Arabia’s representative to OPEC surprised attendees at a New York seminar by revealing his government was content to let global energy prices slide.
Nasser al-Dossary ’s message broke from decades of Saudi orthodoxy that sought to keep prices high by limiting global oil production, said people familiar with the session. That set the stage for Saudi Arabia’s oil mandarins to send crude prices tumbling late last month after persuading other members of the Organization of the Petroleum Exporting Countries to keep production steady.
Hard-hit countries like Iran, Russia and Venezuela suspected the move was a coordinated effort between the oil kingdom and its longtime ally, the U.S., to weaken their foes’ economies and geopolitical standing.
But the story of Saudi Arabia’s new oil strategy, pieced together through interviews with senior Middle Eastern, American and European officials, isn’t one of an old alliance. It is a story of a budding rivalry, driven by what Saudi Arabia views as a threat posed by American energy firms, these officials said.
Shale-oil production in places like Texas and North Dakota has boosted U.S. output, displacing exports to the U.S. from OPEC members and adding to global oversupply
More industry news:
Blog: Speaking of Good News about Methane Emissions: http://exxonmobil.co/1xEUAxh
Poll: 55 Percent of Nebraskans Polled Back Building Keystone XL Pipeline: http://bit.ly/1sQoOqm
Regulated to Death: The Burdensome Assault on Manufacturers: http://bit.ly/1vhd4hA
More reaction to the decision to ban fracking in New York:
The Cuomo Cop-Out: http://nyti.ms/1Cvwggz
Different Decisions on Fracking: http://wapo.st/1JJJ5sh
NY Farmers Lament Lost Opportunity for Gas Riches: http://abcn.ws/16JmEEG
Five Takeaways for Pennsylvania Following New York’s Fracking Ban: http://n.pr/1sQqDUj
The Downside of New York’s Fracking Ban: Local Businesses ‘Falling Apart’ http://bit.ly/1CvvEaC
ABOUT THE AUTHOR
Mary Schaper is a Digital Communications Manager for the American Petroleum Institute. She previously worked on Capitol Hill for the Senate Energy and Natural Resources Committee as Digital Director and for Senator Lisa Murkowski. Before coming to D.C., she spearheaded digital strategy for Murkowski's successful Senate write-in campaign in 2010. Schaper enjoys traveling and taking in the local culture alongside her husband, their son and loyal springer spaniel.