President Trump To Meet With Oil CEOs To Discuss Saudi Oil Tariffs

"President Trump To Meet With Oil CEOs To Discuss Saudi Oil Tariffs" Good luck with that! In reality it will mean that the US will tax all the US businesses and consumers, so that they will be paying, say, 50-60 USD/bbl - just by way of example - in the form of gasoline and everything else, and the rest of the world, including China - all the main economic competitors of the US - will be paying 30 USD/bbl. See how long that one will last.. Neither Saudis nor Russia will lose on that, but I can only imagine how happy China is going to be about this pearl of wisdom, even though this grace will not continue for too long..
The problem with shale is it wasn't competitive, it isn't competitive and it won't be competitive in the foreseeable future, and the longer the US is going to keep it on a ventilator at the expense of the rest of the economy, the greater the benefits will be that the rest of the world is gonna reap from it.

The world should pause and think before swallowing Saudi Arabia's claims hook, line and sinker. Saudi Arabia has been hoodwinking the world for years about the size of its proven oil reserves and production capacity and it is doing it again now by claims about its price war and its ability to flood the global oil market with oil starting May.

Its claim of a price war is no more than a joke. How could cutting oil prices which any oil-producer could do work when the global oil demand has reportedly lost more than 20 million barrels a day (mbd) because of the coronavirus and the glut in the market is estimated by some accounts to have risen to 1.8 billion barrels.

As for its threat to flood the global oil market with oil, this is another joke as Saudi Arabia has never ever in its history had a production capacity of 12 mbd and will never ever achieve one either given that its current production comes from five giant but aging and fast-depleting oilfields discovered more than 70 years ago.

Saudi Arabia exports less than 700,000 barrels a day (b/d) so imposing a tariff on its crude oil exports to the US will not be an earth-shaking measure. Moreover, it will be based on a joke as explained aforementioned.

Still, President Trump’s administration is under pressure to keep the shale oil industry alive even on a life support machine. The idea of imposing a tax or a tariff on all foreign crude oil exports to the US is no more than an opportunistic way to fleece the oil-exporting countries and save American tax payers the cost of bailing out the shale industry. However, this won’t work as most major oil exporters could stop exporting oil to the United States to avoid the tax.

Dr Mamdouh G Salameh
International Oil Economist
Visiting Professor of Energy Economics at ESCP Europe Business School, London

The best way for the Us to bring oil prices up to accommodate its companies and loans is to cut production way down, OPEC is tired of carrying US oil companies and others on there back so time to stop production ,and if trump wants to tax Saudi oil better stop selling to him this way no conflict heavens forbid we do not want that.