Saudi Arabia King Orders a Halt to Oil Exploration

[bearice]

Saudi Arabia has stopped exploring for oil to protect the interests of future generations, the Saudi News Agency reported, citing King Abdullah Bin Abdul Aziz.

The monarch told Saudi scholars studying in Washington that he had ordered that all prospecting for oil to cease “in order to keep the earth’s wealth for our sons and grandsons”, the Riyadh-based agency said.

http://www.bloomberg.com/news/2010-...-a-halt-to-oil-exploration-in-the-nation.html

 

[crash n burn]

I hope he has a Plan B because in a few generations time oil won't be necessary for anything other than making candles and detergents.

 

[bearice]

Quote from crash n burn:

I hope he has a Plan B because in a few generations time oil won't be necessary for anything other than making candles and detergents.

If oil won't be necessary for anything, what will happen to giant oil companies such as British Petroleum (BP), Exxon, Mobil, Shell & others. All these giant oil companies are from western world. If oil becomes useless than western countries will be the biggest losers.

 

[aegis]

Quote from bearice:

If oil won't be necessary for anything, what will happen to giant oil companies such as British Petroleum (BP), Exxon, Mobil, Shell & others. All these giant oil companies are from western world. If oil becomes useless than western countries will be the biggest losers.

Oil is the only natural resource available in countries like Saudi Arabia. Therefore, nations that rely heavily on oil production will be the biggest losers.

 

[bearice]

Quote from aegis:

Oil is the only natural resource available in countries like Saudi Arabia. Therefore, nations that rely heavily on oil production will be the biggest losers.

But I think all the oil is drilled out from Gulf/middle-east countries by giant oil companies from western world. There is partnership between Gulf/middle east countries and western countries for "oil business". If one goes down the other will also go down with them.

 

[Random.Capital]

Quote from bearice:

If one goes down the other will also go down with them.

Unlikely. At the end of the day, something like XOM is just another company. In a $15T economy, it's $250B market cap is just not that significant, and will be replaced by other, new companies.

 

[Cdntrader]

Quote from Random.Capital:

Unlikely. At the end of the day, something like XOM is just another company. In a $15T economy, it's $250B market cap is just not that significant, and will be replaced by other, new companies.

Actually XOM is working with Craig Venter to develop alternate fuels based on genetically altered bacteria. And it looks promising. XOM invested 500 mil.

I wonder if the Saudis do much reinvestment in alternate fuel research?

 

[psytrade]

Sounds like it would be smarter to look for the bacteria generating abiotic oil down there, not throwing a bunch of genes together and expecting to get a result...

 

[cstfx]

Quote from bearice:

If oil won't be necessary for anything, what will happen to giant oil companies such as British Petroleum (BP), Exxon, Mobil, Shell & others. All these giant oil companies are from western world. If oil becomes useless than western countries will be the biggest losers.

They are moving away from being oil companies and are becoming "energy companies".

 

[Drock409]

Beyond
Petroleum

aka BP