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53

Disclaimer: I'm no expert, this answer is based on my modest understanding of the situation at play. The OPEC decision to cut oil production was meant to keep prices high: if every OPEC country were selling all the oil they could, it would drive prices down since there would be more supply than demand. So if every OPEC country agrees to sell only a limited ...


25

The reason Russia didn’t want to do a production cut is because the US is not participating in this, since the US is also not part of OPEC and actually leaves all the oil production to market forces and in the decisions of private businessmen rather than state-controlled oil like most of OPEC. While it's true that Russia needs a higher oil price for their ...


15

The head of Rosneft, Igor Sechin, has long been convinced that the OPEC deal "plays into the hands of the United States" by making its shale oil industry profitable. Allegedly he finally managed to convince Putin to decline the deal in order to drive the US oil producers out of business.


12

When your economy is based on a single commodity diversification is really difficult. There is one place in your economy where the money is, and the power follows the money. Anything else is going to be a money sink for the foreseeable future, which in turn means it is going to have zero political power: any job in a money sink will exist only at the whim of ...


9

They Do. Saudi Vision 2030 is a strategic framework to reduce Saudi Arabia's dependence on oil, diversify its economy, and develop public service sectors such as health, education, infrastructure, recreation, and tourism. UAE Economic Diversification Efforts Continue to Thrive. In 2015, 70 percent of the UAE’s GDP came from non-oil sectors, including media, ...


8

One other point not mentioned is Syria. With Russia and its allies gaining the upper hand over Saudi supported forces, this could be considered an opening up an economic front in that conflict.


7

Game theory point of view We can view it from the game theory point of view, with a simple prisoner's dilemma situation. Let's keep it simple with only two oil producers, Saudi Arabia and Russia. Both can either decrease production, or sell all they can. The less oil is sold, the more each barrel is sold for. The best situation if we add their revenues ...


5

Not as far as I can tell. The closest I can find is this statement in which the US criticise Venezuela for making the deal: US State Department spokeswoman Morgan Ortagus said on Sunday: "Venezuelans need free and fair presidential elections leading to democracy and economic recovery, not Maduro's expensive deals with another pariah state." And ...


4

The "changes of the 60s and 70s" refers particularly to the founding of OPEC, and the subsequent oil crises The point of the oil companies being too big to tax is that, prior to OPEC the oil companies were big and rich enough to play one oil producer off against another. The producers were relatively poor countries. The oil companies were able to ...


4

In addition to the other answers, it should be considered that stopping the unauthorized flow of migrants to the EU from Libya is a priority for the EU. Given the chaos in Libya, Haftar found some takers for his pitch to be the next strongman who will bring order at the barrel of a gun. In such case, the Libyan migration route would be effectively shut down.


3

Three answers have already been posted but I will post yet another because this will be the first one that advocates specialization. In 1808 Robert Torrens wrote... I wish to know the extent of the advantage, which arises to England, from her giving France a hundred pounds of broadcloth, in exchange for a hundred pounds of lace, I take the quantity of lace ...


3

+1 to Paul Johnson's warnings about the challenges of diversification (how many times did Microsoft tank their earnings with failed attempts, until Azure brought success at last?) and the real inherent challenges from the Gulf's environment. Another factor is that many of the Gulf oil states do not have free political systems, but are rather ruled by ...


3

To kill off American competition. US shale-oil fields are very costly to run. So if the oil price falls below certain level, US oil producers are making a loss. If the low prices persist for long enough, some of them might be incited to call it quits and shut the whole thing down. OPEC was trying to keep prices reasonably high, making profit for everyone -...


3

Each time you see some big powers getting involved in some desolate places, you have to be sure that they have some business there. E.g. siphon off natural resources, or selling arms. Or to protect their allies/stooges which give them access to those resources or sell their arms. Control of offshore gas and oil provokes conflicts in the eastern ...


3

According to the article posted by OP: A senior French figure familiar with government policy said support for Haftar is partly driven by the imperative of stanching the supply of arms and funds to jihadist groups threatening fragile governments in Niger, Chad and Mali, which are backed by France’s Operation Barkhane. But the French official ...


3

Saudi Arabia has invested significant financial resources in order to diversify its economy from the revenue of oil production. One of the means of diversification of Saudi Arabia is the Public Investment Fund of Saudi Arabia, which invested heavily in Infrastructure Projects in the US and around the world, Entertainment Projects (Al-Qiddiya), luxury resorts ...


2

There is a deal (still active till the end of March 2020) between the Organization of the Petroleum Exporting Countries (OPEC) and Russia. The deal assumes mutual cut of oil production in order to artificially lower the overall supply and keep the price high. The original deal has been initiated by Russia (despite it is not a member of OPEC) and signed back ...


2

Can the President or Executive branch prohibit fracking on private or state-owned property? Not presently, because there are numerous exemptions for hydraulic fracturing in both law and regulation. There are many exemptions for hydraulic fracturing under United States federal law: the oil and gas industries are exempt or excluded from certain sections of a ...


1

I have no doubt that the President and Federal government maintain jurisdiction over federal lands, but it is less clear to me the jurisdiction the Federal government has over private or state lands. The authority of the President is the authority delegated to the President to promulgate regulations under federal environmental laws and laws governing the ...


1

In 2016, Prince Mohammed bin Salman launched Vision 2030, a project to diversify Saudi Arabia's economy. It aims to support SMEs (small and medium enterprises) to focus on industries such as tourism, manufacturing, and renewable energy. By 2030, Saudi Arabia hopes to make these industries and smaller business contribute to 35% of the nation's GDP, slowly ...


1

Mention of US companies is conspicuously absent from the Wikipedia article on Syria's oil industry. The few European companies that were previously operating in Syria have stopped due to sanctions. And even though Russia alleges that the US is involved in theft of Syrian oil it doesn't seem to be suggesting US oil companies are part of this.


1

For reference, Ahead of oil riches, Guyana holds a decisive election - The Economist Guyana has managed to find, with the help of expertise and resources from ExxonMobil, very significant oil deposits on its Atlantic shore, some of which are in the contested territory with Venezuela. ExxonMobil, together with The China National Offshore Oil Corporation, has ...


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