The Saudis' Odd Plan

Parts of this NYTimes article read as if it was from the Onion. I am not blaming the Times - the Saudis have a strange position.

The Saudis want to negotiate with the oil consuming industrial nations some sort of mechanism by which the Saudis will get paid if oil revenues slump as conservation measures and climate change plans kick in and reduce consumption.

Someone should tell them that change can be tough.

Maybe the kingdom can start a blog.

Comments

[john s. gordon:]

old saying in saudiland:
'my father rode a camel.
i drive a rolls royce.
my son flies a jet fighter.
my grandson will ride a camel'.
> jack

Oct 14 08:56 AM

[chap08:]

Exactly how "old" can this saying about jet fighters be?


On Oct 14 08:56 AM john s. gordon wrote:

> old saying in saudiland:
> 'my father rode a camel.
> i drive a rolls royce.
> my son flies a jet fighter.
> my grandson will ride a camel'.

Oct 14 09:02 AM

[Boxed Merlot:]

...The Saudis want to negotiate with the oil consuming industrial nations some sort of mechanism...

Isn't that what 30 year treasuries are for?

Oct 14 10:19 AM

[Ferdinand E...:]

I can remember when, a couple of centuries ago, the Saudis (or OPEC) offered a similar sort of arrangement to the oil importing countries. What they described was some sort of "cooperation", and it made a small amount of sense to me because, if you remember your game theory, when cooperation is possible, adversaries - or potential adversaries - should give it some consideration.

It wasn't considered at the time because the oil importers were riding high, and moronic economics professors like Milton Friedman supplied our political masters with some moronic reasons for not listening. Since I don't believe that the Saudis are serious on this occasion, I am not suggesting that the oil importers should spend a lot of time studying their proposal, but IF they are serious, it might be nice for everybody if something could be worked out.

Oct 14 11:02 AM

[Tony Petroski:]

The Bond Expert has branched into the murky world of oil and Middle East politics. I love it.

From the Times article: "...if wealthy countries reduce their oil consumption to combat global warming, they should pay compensation to oil producers."

They do. It's called American blood shed that helps to keep the odious Saudi regime in power.

As for the Onion, I like it better than the Times.

Oct 14 11:34 AM

[kiers:]

....get paid....or else? they will send teh wahabi warriors over?????

Oct 14 11:35 AM

[Beach Bubba:]

From the Times article: "...if wealthy countries reduce their oil consumption to combat global warming, they should pay compensation to oil producers."

You can bet "your" president and his administration along with the Congress will be studying ways to implement those just proposals, as we speak. I will vote with the ESSO bee(s) at XOM to assure that my vote is counted..

Oct 14 12:17 PM

[stink726:]

Somebody should explain the concept of diversification to the Saudi's.

Oct 14 01:33 PM

[john s. gordon:]

compensation to the saudi monarchy includes aircraft carriers on duty and patriot missiles.
when the iranian theocrats are proven to have nuclear tipped missiles additional compensation will be nuclear warheads delivered to saudiland. now there's something to ponder.
the above saying is at least a year old, i read it on seeking alpha.
> jack

Oct 14 04:32 PM

[Dean M:]

We can only hope that this will come true


On Oct 14 08:56 AM john s. gordon wrote:

> old saying in saudiland:
> 'my father rode a camel.
> i drive a rolls royce.
> my son flies a jet fighter.
> my grandson will ride a camel'.

Oct 14 05:26 PM

[a793aa:]

The Saudi oil reserves would take longer than our lifetimes to deplete, plus as oil would become rarer, you could you imagine the price of a barrel of oil as it becomes scarce. Even if the western nations would slowly start to convert to alternative vehicles, but not everyone would off oil. Becoming a valuable commodity, at what costs would nations go to maintaining their supply for their countries? Perhaps oil wars would emerge and perhaps the Saudi's would have more to worry about than their riches and their Bentley's.

Oct 14 10:01 PM

[ozymandias888:]

My God, look at the damage the Saudis have done to civilization with the export of radical islam (the literal deal with the devil in which they bankrolled the fundamentalist, imperialist Wahhabis in exchange for their political support).

The only thing we owe them is the nuclear cauterization of Mecca, Medina, and Riyadh. We will do it eventually, and we will wish we'd done it sooner.

Oct 14 11:22 PM

[ozymandias888:]

Maybe the Saudis should have invested their huge windfall of the past two generations in building a durable economic base rather than having fun and causing trouble.

Oct 14 11:26 PM