One way around the problem I suppose

[HalfBreed]

http://www.seattletimes.com/business...ow-oil-prices/

Saudi Arabia on Monday said this year’s budget deficit amounted to $98 billion (367 billion riyals) as lower oil prices cut into the government’s main source of revenue, prompting the kingdom to scale back spending for the coming year and hike up petrol prices.

A royal decree announced that petrol prices would go up by 50 percent effective Tuesday. Even with that jump, Saudis will pay just 24 cents (0.90 riyals) for a liter of 95 octane gasoline, less than a dollar per gallon. The Saudi-based Jadwa Investment estimates the government spends around $61 billion on energy subsidies annually, almost $11 billion of that on gasoline alone.

Sure would be nice to pay that at the pumps.

[CaberTosser]

Not much incentive for efficiency there...

[alacringa]

I wish I had the problem of gasoline hitting 24¢/L!

[JimPS]

Small price to pay for living in one of the most corrupt countries in the world. One of the worst human rights abusers too.

[Sundancefisher]

Originally Posted by alacringa

I wish I had the problem of gasoline hitting 24¢/L!

We could. Saudis subsidize it. Why not just ask the NDP to subsidize our gas down to $0.24/L?

[Kim473]

With that amount of deficet it won't be long and oil prices will start to climb. They won't be able to keep it low forever.

[avb3]

Originally Posted by Kim473

With that amount of deficet it won't be long and oil prices will start to climb. They won't be able to keep it low forever.

Iran's cost of production is $1.00/barrel. And they have the ability now to export it. You don't think that they're going to maximize the amount of foreign currency that they have not been able to obtain when they were under sanctions, then one is only hoping.

I do agree, that Saudi is going to be in a world of hurt, but they are trying to protect market share knowing that just across the Gulf, Iran is ready to flood the world's markets.

It ain't going to be pretty for oil producing companies for a long time. We need to adjust to that new reality.

[caver77]

Originally Posted by Sundancefisher

We could. Saudis subsidize it. Why not just ask the NDP to subsidize our gas down to $0.24/L?

LOL, surely pretty boy would do that if we asked nice enough!