For those not seeing the oil field

There is a larger field, a larger oil field if you wish. And the people aren’t getting it. I get it, it isn’t an easy equation and it is not really your fault, because the media is guilty as hell in all this, but lets start at the beginning (well, some kind of beginning). One such headline is ‘Oil trumps human rights as Biden forced to compromise in Middle East’, it is one way to look at it, but it is the wrong way. My headline would have been ‘Greed is eternal at the expense of everything else’. The point here is that we get to see a few sides that the media is not giving us. It starts with the oil and that part is a lot more important than you think it is.  So lets take a look at the three nations and the barrels per day they pump.

United States11,184,870
Russia10,111,830
Saudi Arabia (OPEC)9,313,145

So America pumps out a lot of oil, now it makes perfect sense that they will not deal with Russia, but it is at present still an unequal information package.

You see the United States exported about 8.63 million barrels per day (b/d) and imported about 8.47 million b/d of petroleum. And now you think it does not make sense. So lets just say that the US is selling oil at $50 a barrel and buys it at $35 a barrel, so they get 8 million (rounded) times $15, is $120 million of profit a day and that amounts to $43.8 billion a year. Profit they basically got for free. The Kingdom of Saudi Arabia is not willing to give away $43.8 billion after the way the US treated the Kingdom of Saudi Arabia. There is just so much any person will take and I reckon the Kingdom of Saudi Arabia has taken enough of the treatment handed to them. So the US instead of catering to self sells 73% of all the oil they pump, so why should the KSA after the way they were treated cater to that situation? Even an alternative that the us keeps 50% of their sales, they hand the KSA 50% it might be seen as a compromise. The US could stop selling 2,500,000 barrels a day and cater to its own needs, but the profit of some are not easily swayed. They are seemingly willing to let the US population freeze to death (or boil to death). And these numbers are out there, the media has had them for the longest time. All these BS articles on going crude oil free whilst the US is selling 73% of whatever they drill. Seems a little hypocritical, doesn’t it? 

That 73% does cater to 176 countries and 4 U.S. territories, no one denies that, but the profit goes somewhere and not all of it to the US coffers owned by the US treasuries. Someone is getting rich and the media is happy for you to be in the dark about it. Ask yourself “How many media outlets have given view of the amount sold? Why is the US short on oil whilst the oil harvested goes somewhere else?” I get it, there is a need for profit, no one denies that, but we see all these articles that imply and suggest that the Saudi’s are the bad paty whilst the US is trying to get cheap oil so that they can sell it at a profit. And believe me, when we change the prices of the earlier given $50 and $35 into the real numbers the equation changes really quick and the numbers become exceedingly large. 

So why should the Kingdom of Saudi Arabia hand over profit that they are entitled to? Did you honestly think that Aramco was some non profit organisation? If it is it will be non profit for Saudi Arabia and its citizens, not for the US and their citizens, or the 176 countries that they could cater to. And the media does not really give you that, do they? So when the Guardian gives us “Brent crude hit a 14-year high of $139.13 a barrel in March, fuelling global inflation and a worldwide cost of living crisis. In the US, inflation is at 9.1% and accelerating, which is likely to translate into lost seats for the Democratic party in November’s midterm elections.” What happens when they sell 2.5 million barrels a day less and let that go to the US shortage? The equation changes by a lot does it not? 29% less sales will be felt all over the US and by Brent in particular, so why exactly does the Kingdom of Saudi Arabia need to play ball with the US, especially when China is exceedingly courting Saudi Arabia for all kind of goods and when I see the revenue setting of 375 billion + 530 billion that the Kingdom of Saudi Arabia is spending on improving Saudi Arabia, there is every setting where the US has overplayed its hand and China is now in a premium position to get their revenue balls rolling. A setting I warned about before Covid before 2019, there were courters in the field and when that overpriced US plane wasn’t going there, China could sell the Chengdu J-20 at a nice price to Saudi Arabia (I admit I was trying to get my foot in the door and make a play for a simple 3.75% commission), and when you consider that this bill might go up to 15 billion, my 3.75% makes for a nice half a billion (we all have overly big dreams), and merely to play the courier? You have got to be kidding, I am so ready for that part! 

But this was about oil and the US played the wrong hand several times over (like shaking hands with air) and now Saudi Arabia and especially Crown Prince Mohammed bin Salman Al Saud might feel that the US played them for a fool and the problems start when the US could not afford problems. A stage where we see that Brent Crude is not so innocent and the media should have been on top of this, but I will let you people decide how that should be seen.

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Filed under Finance, Media, Politics

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