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Old 08-21-2015, 08:08 AM   #2574
cosmiccowboy
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Join Date: Jan 2007
Location: San Antonio hunt Medina/Atascosa
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The Saudi's are playing an interesting game. Their oil production costs are dirt cheap but the government social spending to keep the natives fat and happy and not overthrow the monarchy is huge. They have large cash reserves to weather the downturn in oil prices for awhile but with their burn rate on reserves they can only play this poker hand for a couple of years before they have to think about folding. At this point the Texas oil industry just has to hang on and survive until then.
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