The oil futures market to have a big impact on Saudi Arabia
There is precious little quality journalism in the Telegraph these days, but Ambrose Evans-Pritchard continues to hit the spot. This analysis of the oil futures market, and the impact it is likely to have on Saudi Arabia, is bang on the money. What it doesn’t mention though is the effect renewable energy has on hydrocarbon demand; even in the US, renewable electricity generation accounted for over half of the new capacity installed last year and the trend is upwards.
The Saudis are being squeezed by low oil prices at a time when the kingdom has never been more vulnerable to Iranian power and a restive population. Its main ally, the US, is giving less of one about the entire region as it heads towards energy independence. If the House of Saud falls in the coming years, it’s hard to imagine who will miss it apart from the arms industry. It may even mean that western cash used to buy Saudi oil is no longer used to spread extreme Islamic theocracies and support some pretty nasty terror networks. The benefits of home grown renewable energy just keep coming.
You can read the Telegraph article here.