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[andyh]

Isn't this a bit strange?
From advfn:

COMMENT: Hiding An Oil Panic In Plain Sight.


The Saudis are the "central bank of oil," right? So how come this
central bank is scrounging for loose change under the couch cushions?

Earlier this month came news that Saudi Arabia hired five Rowan jack up
oil rigs for drilling offshore oil wells on a three year contract.
Those rigs are currently under contract in the Gulf of Mexico, so that
means Saudi Arabia outbid somebody to get those rigs - and rig rates
have already run up to obscenely high levels - 30% to 50% more than a
year ago.

Drilling for oil underwater is very expensive. You'd expect the Saudis
to be drilling out their cheapest oil first. Don't they have a freaking
desert full of this stuff? So why are they suddenly going whole hog
for underwater oil, and willing to pay a premium to do it?

Unless...maybe the Saudis don't have as much oil in their land-locked
fields as they say they do.---
--


Rowan Obtains Three-Year Drilling Contract for Five Rigs in Saudi Arabia
Tuesday August 2, 9:25 am ET


HOUSTON--(BUSINESS WIRE)--Aug. 2, 2005--Rowan Companies, Inc. (NYSE:RDC - News) announced today that it has been awarded a term drilling contract by the Saudi Arabian Oil Company ("Saudi ARAMCO") for five Class 116-C jack-up drilling rigs to begin operating offshore Saudi Arabia in early 2006. --

[rs]

If the Saudi fields are approaching decline then I am sure they will do all they can to keep up the illusion that everything is tickety-boo.

That is, until the can no longer meet they quota. I am not looking forward to the day that happens.

[snow hope]

I agree, the pretence of everything being "all right" will be held up until the very last minute, when finally they have no choice but admit it all in a cloud of tears. This is normal practise in business. Hide all the bad news or the impending crash until you just can't deny it any further.

A sure sign that the cliff is imminent.
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[isenhand]

Not a very intelligent way to deal with things. Maybe the need to learn risk management? Much better in my opinion to look at our problems in the face and then do something about it. But then I don?t know anything anyway
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[rs]

You're right, it is not a very intelligent way to deal with things.

But there are large elements of the human population who couldn't give a toss about the welfare of others and are only interested in their own gain. Generally the biggest offenders are those in the seats of power ie. government and corporations. As long as they can continue to swell their obscene coffers and pensions they will do so, at the expense of the rest of us.

[hatchelt]

talk about giving the game away. so once this three year contract runs out it's going to be pretty much game over?

[andyh]

I am constantly on the look out for info that will either support/detract from the view that the peak is almost on us. I regard the above revelation that the Saudis are seeking to do offshore exploration as one of the clearest indications that we have a major problem and its imminent.

When you think about it why would anyone believe the Saudis pronouncements on anything ie there reserves? They run a pretty vile regime up to its neck in corruption, with 5000 'princes' parasitising the state coffers - added to that they espouse a medivealist form of Islam.

[grinu]

I read somehwere that Saudi's could extract oil from their reserves at a cost of approx $1.50 per barrel, as opposed to $15+ per barrel in other areas. So it does make you wonder why they're going into more pricy offshore ventures....

[hatchelt]

i doubt there's much off-shore either...especially when they're hiring the equipment and not building their own...and only for 3 years too...ye gods...