08/11/2017 (Fri) 16:28:08
The Saudis are the subject of occasional debate for a failed kingdom, a collapsed monarchy, a bankrupted nation, with finances bleeding red ink like never before in its brief history. Infighting has occurred to wrest the title of crown prince for Mohammed bin Salman (MbS), certain to have caused internal resentment and worse. The kingdom is depleting it financial reserves faster than it is the oil reserves. Deficits are at astounding levels. The lower crude oil price has resulted in half as much in revenues, while the filthy Yemen War has aggravated the costs within the financial ledger. The Saudis have issued bonds to finance their deficits, breaking new ground and angering some hardline Moslems. Their currency swaps are occasionally showing danger signals. The incidents with Qatar have left the Saudis with few if any friends, even in the Arab world. The arms deal charade with President Trump was one for the comic books. Even Langley is angry, as MbS screwed up their plans to stabilize the kingdom and region, with the goal of less terrorism. The other violent clown, Mohammed bin Zayed (MbZ) is the crown prince of Abu Dhabi in the UAE. Both might soon become expendable.LIAR LIAR OILFIELDS ON FIRE
The big fat liars in the oil room are the Saudis. They have lied about their spare production capacity since the year 2000 or so. Such lies are used in attempts to move and to control the oil price. They have lied about their oil reserves for years also. That they have depleted oil reserves is the perfectly fitting motive for their predatory war in Yemen. They wish to steal the Yemeni oil & gas reserves, which are enormous and plentiful, even as not ever mentioned in the dutiful lapdog Western press. After 50 years of oil production, the Ghawar field is pumping over 98% water and brine. Other elephant fields are equally tapped out. The Saudis do have several smaller fields in production, but they do not compensate for the vacated elephants. Not at all. The Saudis are liars on oil reserves.ENTER THE ARAMCO DEAL
The Saudis wish to conduct an IPO stock deal on 10% of the ARAMCO assets and income. They laughingly estimate the total petro-chemical corporation to be worth US$2 trillion. In response, the Western energy analysts hopped on the wagon to provide financial analysis of value. Well, surprise surprise! The analysts estimate the ARAMCO giant to be worth $500 billion or less, at least four times less than the bloated exaggerated value posted by the Saudi liar princes. The IPO deal is stalled, possibly since underwriting brokerage houses might not wish to be the object of lawsuits in the near future. Meanwhile, the Saudis are sweating badly, very worried about not having their $200 billion payday. They will be lucky to have $50 billion in the tainted IPO deal. Below is just one site of the sprawling state owned complex.