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Monday, July 29, 2013

Saudi Prince States That Fracking Is Threat To Kingdom

From Sky News (h/t Drudge):

A Saudi prince has warned that his oil-reliant nation is under threat because of fracking technology being developed elsewhere around the world.

Billionaire Prince Alwaleed bin Talal said the Gulf Arab kingdom needed to reduce its reliance on crude oil and diversify its revenues.

His warning comes as rising shale energy supplies in the United States cut global demand for Saudi oil.


In an open letter to his country's oil minister Ali al Naimi and other government heads, published on Sunday via his Twitter account, Prince Alwaleed said demand for oil from Organisation of the Petroleum Exporting Countries (Opec) member states was "in continuous decline".
 Of course, it is not just developments in the United States, but from nations as diverse as Israel and Australia.

There is more than just industrial decline at issue here. Falling oil prices are an existential threat to many oil producing countries because they rely on oil revenues to sustain their budgets--and welfare and subsidies to their citizens. Low oil prices could lead to food riots that could topple regimes.

Of course, it is easier to have environmental groups beat their drums, and to "influence" key government officials, than to diversify an economy in a slave culture. Accordingly, we should see more desperate actions both from the Administration, certain members of Congress, and from environmentalists to stop further development in the United States and other first world countries.

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