Why all the excitement?

The Saudi’s & Russia got exactly what they wanted.
Report: Russia upset by lack of Saudi investment in Arctic energy.

Thought: Maybe an environmental advocate will realize Arctic exploration is catastrophic & draw global attention to it?

If US desires an “orderly” oil price they should come to the table with production cuts.

Dude on TV says Vladi craves legitimacy. Dead wrong.

They want money, power & strategic depth. Not our approval.
China & India thrilled.
Aramco to increase production by 2.5 mb/d in April.

That on its own will increase Saudi oil revenues relative to pre-crisis levels.

- AA
Saudi & Russian SWF $500B+, respectively. Includes gold.

I suspect they have multiple funds.

We continue to underestimate our competitors. France, China, South Korea & Japan are funding Russia’s exploration of the Arctic. France’s Total in for $30B~.

Vladi has rebuilt the military with other people’s money.
Whispers out of China indicate oil storage facilities near maximum capacity.

Buying on the dip.

Strategic metals & minerals none more than oil.
Kuwait enters the fray.

Western companies can’t compete with SOE’s or SAE’s.
1. Russia not discussing return to OPEC+.

2. Novak blames OPEC member countries' behaviour.

3. Russia's April production to increase by 200,000 b/d.

SOE’s win this game.
MBS pledged to reform an oil-dependent economy & modernise a conservative nation via string of mega-projects, eased social restrictions inc lifting a ban on women driving, cinemas to open & music concerts to be staged while muzzling the once-feared religious police.

Alberta joins the ranks of SAE’s: State assisted enterprises.

Spend proceeds wisely.
13 GOP senators request KSA rethink plans to boost oil production: "We urge the Kingdom to assert constructive leadership in stabilizing the world economy by calming economic anxiety in the oil & gas sector."

Traditionally, US nimble manager of Saudi relations. Strategic depth
Lindsay Graham,

"I have concluded that the relationship between Saudi Arabia and the United States cannot move forward until MBS has been dealt with."

KSA pivots to Russia. During the Cold War, the former helped us topple the latter.
India filling-up Strategic Reserve.

Subpar energy supply chain has been a drag for India’s economic growth.
Venezuela in danger of total collapse.
Saudi break-even: $45~.
Russian break-even: $30~.


Apparently, this is one of Vladi’s homes:
GS on oil. They were early & so far correct on this spiral.
IMF rejects a surprise request by Venezuela for an emergency $5B loan to fight the new coronavirus, which threatens to push its already battered economy over the edge.

From 2015. 2020 numbers must confirm Venezuela is amongst the world’s most violent countries.
Great movie.
Apparently, KSA has been pumping heavy oil in particular.

Seems targeted at us.

Because we’re great friends.
We will miss our energy sector if it dies.

Virtually every barrel of oil now produced will come at a loss at a time when the energy industry generates 10% of Canada’s gross domestic product and a fifth of its exports.
Going for the kill. April.
Market needs oil price stabilization.
Oil (red) & 2 Yr T Note (blue).

- Wolfe
Few months ago: the trading arm of a Chinese state-owned refiner is turning away crude from Russian energy giant Rosneft PJSC, the parent of a unit hit by U.S. sanctions.

Vladi will demands sanctions removed.
KSA has no choice but to follow thru with record oil production & delivery.

Anything less will tarnish credibility.
When does Canada join OPEC?
Egypt is all business.
New city.
New Suez.
New Bonds.
New friends.
And while President Trump talks about a 10-15m b/d output cut from Saudi Arabia and Russia, the kingdom is still pumping and pumping. Right now, there are at least 15 oil VLCC and Suezmax tankers either loading or waiting to load at Ras Tanura and Al Ju'aymah terminals.

- Javi
The Ningxia refinery, owned by PetroChina, has raised the operation rate of its crude oil processing units to 93%, as of April 1, from 72% last month, the company said in a statement.

- Reuters

PetroChina is big business.
Iran in big trouble.
Military overreach.
Poor leadership.
Russia smoothes the way: China enter Majnoon.

South Asian Intel agencies estimate up to 5 billion barrels of reserve.

Field crosses into Iran.
Everywhere countries like India, Indonesia, Vietnam, Pakistan, Japan & even South Korea look for energy they find America, China & Russia.
Minister Savage:

Alberta is the owner and regulates the petroleum reserves and production in our province, whether it is Crown or freehold land.

The government of Canda, conversely, has a limited role in either owning or regulating production in Canada.

Headline breaking in the oil world:

“Canada’s biggest oil driller backs global production cut”.

They’re referring to Canadian Natural, lowest cost producer in North America.


KSA requests ceasefire in Yemen.

Teamwork humbles Iran. Russia & China do nothing.

MBS owes @realDonaldTrump. Big time!
KSA takes position in Western energy companies.

Access to USD.

Brilliant any way you cut it.
You can follow @KevinDSamuel.
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