Comment on Of Maps and Men by Samer Nasser

Qifa Nabki Comments - Sun, 2014-11-16 05:47

Final comment on that garbage qz dot com article I linked to in my previous post.

Someone please give the author a Nobel Prize in Economics for this concluding paragraph of the piece:

“Finally, the main market reason for Saudi taking these actions is the surge in US shale oil production. With lower prices, the Saudis are testing the will of upstart shale drillers to stick out a period of narrow profit or even losses. In a recent report, the US Energy Information Administration said low prices will result in a halt to some US drilling but that most of it will go on, resulting in a continuing production surge. That means that the US industry won’t see relief from the sweating for some time.”

So yeah, it is US production which is surging, but it’s the US which is being “sweated” by low prices from Saudi Arabia?! This idiotic author makes no sense and doesn’t realize that surging production naturally leads to lower prices, and that the US is actually more responsible for this than any other more-mature producer.

He’s just maliciously baiting the Saudis and playing the victim, while irrationally portraying a scenario that is exactly the opposite of what is alleged, where the US is the one “sweating” the Saudis and not the other way around!

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Comment on Of Maps and Men by Samer Nasser

Qifa Nabki Comments - Sun, 2014-11-16 04:47

OK, I was feeling bad about not being nearly diligent, thorough, updated and expert enough in my long response from a few days ago to Akbar Palace and Ray regarding their hallucinatory allegations of Saudi price manipulations of the oil markets.

But then I came across this article on Twitter today and my jaw literally dropped due to how stupid it was! Seriously, my throwaway comment from a few days ago on a subject which isn’t even my dedicated line of work was a PhD dissertation compared to this stinking pile of BS!

So let’s get this straight, just for a laugh! We clearly live in an international era of the “national oil company”, and the “rentier state” that “balances its budgets from the proceeds of selling oil”, but the sublime genius who wrote this article, despite quoting the Saudi Oil Minister repeatedly denying that a price war was taking place, thinks Saudi Arabia is executing a “Rockefeller-style good sweating” of its rivals?!

This Rockefeller reference really cracked me up, especially when to provide ominous context the author reminded us that Rockefeller “ended up controlling 90% of the American petroleum market”.

So assuming the Saudis are indeed stupid enough to make an anachronistic Rockefeller-style play, how exactly would it end? However long it takes, let’s say 2-5 years as the article states, what happens then? Does an exhausted Putin hand over the shares to Gazprom or whatever, the leases to the fields, the keys to the tankers and beg the Saudis, “Take it all but please, just pay our pensions and our government budget!” :)

This would have to occur not once but several times across the globe for the Saudis to go from controlling 10% of the market to 90%. But Rockefeller operated 100 years ago in a shallow, primitive, private, opaque, unregulated and domestic market. It’s callous and maniacal to argue, as this article does, with no concrete data other than a copy-and-pasted price chart, that his bullying tactics and strategies would have any traction at all in today’s complex, global, well capitalized oil market.

Besides, I’ve already argued that Saudi Arabia can’t increase production substantially and sustainably on a whim (these things require the careful planning of many years of multi-billion dollar capital investment). So even if Saudi Arabia does singularly discount its product by a large margin, granted it would draw incremental demand that normally would go to other producers, but it might not otherwise perturb those producers all that much. This additional demand would eventually plateau, since it would consume all of Saudi supply, emptying it out of the market like a barren clearance rack at a local department store. That is why the oil price is determined at the margins of the fungible oil market as a whole, not at the individual margins of Saudi Arabian (or any other national) production.

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Comment on Of Maps and Men by Samer Nasser

Qifa Nabki Comments - Sat, 2014-11-15 22:52

Akbar Palace,

I’ve known about Charles Krauthammer for years without giving a toss but today I learned something profoundly new about him that I had no idea about previously.

He’s apparently in a wheelchair, having suffering a spinal cord injury after diving into a shallow pool at Harvard Medical School and hitting his head on the bottom.

I’m sure you, being such a loyal fan and adherent, know this about him. I swear it reminded me of Sheikh Ahmed Yassin, the founder and spiritual leader of Hamas, who was also confined to a wheelchair after sustaining a spinal cord injury while wrestling a friend in Gaza.

The good news is that Krauthammer just has to hang in there for a while longer and there’s a very good chance modern medicine will get him out of that wheelchair. Did you hear about those Polish surgeons and that Bulgarian knife attack victim in Europe (London?) earlier this year? They took him from a wheelchair to a walker.

Here in the US, I follow the fantastic research being done by Eric Lander’s Broad Institute at MIT/Harvard. Then there’s the superb Department of Biology and Biological Engineering at Caltech. Add Stanford, UC Berkeley and Johns Hopkins into the mix, not to mention everyone else, like the Howard Hughes Medical Institute, Scripps Research Institute and the NIH, Japan’s RIKEN, the UK’s Sanger, etc. and there’s every reason to urge Krauthammer to leave politics to the mediocres and devote the rest of his life to discovering the scientific knowledge that might ultimately alleviate his own debilitated condition.

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Comment on Join the Fight Against Tattooed Eyebrows by Kellyke

Ivy Says Comments - Thu, 2014-11-13 12:33

Funny blog! :-)

I just want to notice that, it’s not that women just wake up one day and decide to pluck or shave their entire eyebrows off.. and start drawing them or getting them tatood.

My brows are not symmetric so I pluck them untill they are. Problem is that there is almost nothing left. So than I draw the rest to fill them up. But I am not a big fan of tattood eyebrows either… It looks a bit trashy..

But the shape is very important… and the color as you say. Just google ‘the perfect eyebrow’ and to those, I say yes… well done!

Greets from Holland.

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