Saudi Prince says cheap oil here to stay

Saudi Arabia's billionaire Prince Alwaleed bin Talal says that he does not expect to see $100 a barrel oil again. Currently, prices are less than $50 a barrel, and the Prince says these prices will last indefinitely.

He says current prices may dampen the United States shale revolution. As a matter of fact, a couple major rig operators have plans to cancel contracts, electing to pay early cancellation fees than to keep drilling at these prices.

As for political measures, the Prince says he doesn't believe the low oil prices have anything to do with Saudi Arabia and America strategizing to hurt Russia's president Vladimir Putin. The decision by Saudi Arabia not to cut oil production, in light of falling gas prices, was simply of keeping market share. Otherwise other oil producing countries like Venezuela, Brazil, Canada, Mexico, and even Russia would have made up the difference.

Lastly, Alwaleed bin Talal said that $100 a barrel is really an artificially inflated price. He admitted if supply remains where it is, and demand increases, we may see a modest increase in oil prices, but he expects oil to remain relatively cheap for the foreseeable future.

To save this article or read as a PDF Click Here

By Bryan Gray | | Gas Prices, Natural Gas, Petroleum | 0 comments
next post → ← previous post


Leave a comment

Stay in Touch

Contact Us

We'd love to here from you. Call us at 1-800-264-3630 or E-mail us at and we'll be happy to answer any questions you have.

Latest Posts

  • Oil Markets to Stabilize

      Oil markets are expected to stabilize in the coming months as decreases in investments by oil companies will produce a drop in supply, according to the chief executive of energy giant Chevron.Chevron CEO John Watson said that oil prices... read more

  • Crude oil futures prices continue to drop due to storage

    April futures delivery on the New York market continued its downward trend. Some analysts say its due to an ongoing lack of storage for oil supplies. Although fears of running out of oil storage are unfounded, oil prices likely will... read more

  • Obama vetos approval of Keystone XL pipeline

    United States President Barrack Hussein Obama has vetoed approval of the Keystone XL pipeline, keeping his promise to deny the project backed by Republicans as jobs measure but opposed by often controversial environmentalists who claim oil and gas consumption contributes... read more