Saudi Arabia's Oil Problem
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Writing by Sam Denby
Research by Sam Denby and Tristan Purdy
Editing by Alexander Williard
Animation by Josh Sherrington
Sound by Graham Haerther
Thumbnail by Simon Buckmaster
Select footage courtesy Getty and AP; Select imagery courtesy Geolayers; Select music courtesy Epidemic sound
"Once our oil is finished, we will return to the camel era." Sheikh Al Jabar
By sheikh Jaber you mean that of Kuwait? Btw Kuwait own the the biggest sovereign investment fund second only to Norway, so yeah that “ camel era “ will have to wait
@@ezix3753 Kuwait also was rich before oil because it was a Port
That peninsula will be uninhabitable by that point
"My grandfather rode a camel. My father drove a car. I fly in jet planes. My son will drive a car. My grandson will ride a camel".
And that's never gonna happen!
I'm always amazed by how much oil there is. With so many people using it, it feels like we should have drained the Earth years ago.
There is enough oil in Canada oil sands to supply the world for 175 yrs its just expensive to refine it.
We've discovered new technologies and deposits winch increase the size. We'll probably never be able to use it.
We have drained most of the cheapest sources, we will probably never actually run out, we are likely to just stop using very much of it as cheaper and cleaner energy sources and technology become more common.
The level of consumption will never be enough to deplete the worlds reserves. Just accessible oil alone will last for around 200 years. While fracking, oil sands and oil cable can extend that out to 1,000 years. The other reality is that most oil is in reservoirs which is typically surrounded by porous rock that will slowly seep more oil in over years and essentially replenish that reservoir. It’s not that the oil goes dry. It’s that it can take decades for enough oil to again pool in these empty spaces below ground that our reservoirs are tapped from. Essentially the idea that oil is rare is used by those nations to increase its value and benefit from this myth by OPEC charging more money for a barrel of oil. Prior to 1950 oil was considered an inexpensive commodity similar to other commodities. It was only through volume that the oil companies amassed their wealth. After OPEC is created the myth of peak oil is pushed in order to increase the profits that those oil rich nations would get. There’s also the argument about abiogenic sources of oil and natural gas which argue that oil and gas are not in fact from fossilized sources. But are actually from bacteria that live deep beneath the earths mantle. The bacteria that thrive in underwater volcanoes can grow at insane speeds and it is believed that this could be the source of hydrocarbons. This would essentially mean that oil is not finite. It is a naturally occurring and constantly producing event. Much like trees growing or fish in the ocean. This would mean that unlike something like gold, copper or iron which comes from mining and has a fixed amount of available reserves. Which is what creates the value of these. If instead oil is like trees or cotton. That would mean that the value of oil would be far less as the reserves that are depleted would eventually refill the same way that a Forrest can be replanted. Essentially oil needed to be perceived as rare in order for OPEC nations to financially survive as the video explains. So the myth of peak oil and oil being a quickly ending resource was pushed in order to increase the profit of selling a barrel of oil. If oil was still perceived as being plentiful and something that would refill reservoirs after 20-50 years. The value of oil would be far less.
There's literally oceans of it, or at least there were. The daily global consumption numbers are mind boggling though, and it's tough to wrap your head around how much there truly is. The problem with oil won't be it's supply, but the cost of extracting it. The more and more scarce it gets, the less likely companies will be able to turn a profit. Cost of oil production will bring it to an end well before it's completely drained. The sad thing is though, you think about the vast fortunes it provides, but how little there is to show for it.
"Strict but ambiguous" sounds like the worst possible legal system.
They can get you on something or another, whenever they feel like it
They can get you on something or another, whenever they feel like it
That sounds like Indonesia too.
Literally any legal system
Exactly, like any legal system, we see that everyday here in the U.S.A.
Everyone is being like "HAHAHA OIL PRICE IS HIGH NOW THEREFORE YOUR ENTIRE VIDEO IS INVALID" doesn't realized 1) As mentioned in the video, the oil price is much more volatile than the last century, and there's no reason to believe any peaks would stay that high 2) The entire point of SA expanding their industries is an attempt to lower the reliance on oil, the oil price being high now doesn't mean jackshit, because it won't be high forever AND THAT'S THE POINT 3) higher oil price accelerates the process of countries adapting renewables, which is already planned in EU because of the whole Russian-Ukrainian war, so what caused this spike at the first place might be the downfall of oil in the future
But it might've provided them with ample time to avoid such a catastrophe, it would be unwise of you to assume that they're not taking full advantage of this situation to prepare for when such an event happens.
Bro stop talking bullshit. What do you think how long it takes to make the whole west green. And of course if opec and russia want the oil prices to be high they are gonna be high. They have all the power over oil prices in the entire world. And yeah its true that the west wants independence from oil but that's not done like tomorrow you dreamer. If the west doesn't get its oil soon their done for. That's just a fact. The whole military of the west is working with oil. Just look at the us military
That's what you call shortsightedness, people don't understand that videos are made in the context of y'know, the time it was made
reverse psychology, i will sell my oil so cheap, that you can't resist but depends on it
Not to mention how someone showed me how Canada had much cheaper gas prices, being only around $2.40 CAD. The issue is that those prices were per LITER, not gallon. A liter is roughly 1 quart, so the price would actually be $9.60 CAD, or ~$7.40/gal. US gas prices are closer to $4-6 USD/gal.
As an atheist, when looking for a tourist destination, a place that legally considers me a terrorist is very far down my list
No one need you anyway
I've always kind of assumed that being a terrorist is about something one does. Kind of like how you can be a pedophile by believing that prepubescent children are sexually attractive, but in order to be a child molester you'd have to act on those beliefs. So while it might be possible for spreading atheist arguments to be counted as terrorism under some kind of a highly unusual definition, I don't see how merely being an atheist could be considered terrorism.
@@SharukhSaifi apearently your ruler thinks differently
Context : The Saudi government wanted to label its political rival in the region the Muslim Brotherhood as Terrorist so they added Atheist to the list to avoid looking as if they are singling out one group , and the video is inaccurate the Saudi didn’t hack Jeff bezos phone this has been debunked .
@@Jewzi123 Thank you for your reply. You can label an organization, such as the Muslim Brotherhood, a terrorist organization, but atheists are not an organization, though atheist organizations of course do exist.
When oil was cut off from the United States during the 1973 Arab-Israeli War, Henry Kissinger told Faisal "If Saudi Arabia does not lift the boycott, America will come and bomb the oilfields." King Faisal replied back "You are the ones who can't live without oil. You know, we come from the desert, and our ancestors lived on dates and milk and we can easily go back and live like that again." But I don't thnk king Faisal's quote remains true anymore. I also feel like I have the opportunity to shill the lavon affair
They still do
@@deathrow6625 Indeed we are resilient.
The 6th fleet in the Persian Gulf protects Saudi Arabia from their enemies. Hence they will not $hit in their own nest and lose that protection. The Petro Dollar is safe for now.
Oil will be a thing of the past by mid this century. The future is green and renewable energy. OPEC shot itself in the foot in 1973.
@@TJ-vl1ff lol
It's not true that KSA needs over $85 a barrel to break even on oil production, but they do need that price to break even on their state budget. The break even on Saudi oil production is under $10 a barrel. Oil basically flows up ny itself and is easily harvested.
true, just look at Iraq. even before the US invasion their oil fields were terribly maintained and modernized but after the war they just invited major oil companies to put in bids to exploit the fields and sat back while the oil companies built a new oil industry for them. since companies will do all the work a government doesmt need to do anything but count the money that gets dropped in their laps.
more like $4
Well their state budget AND a few more lambos
Yeah this is another stunning oversight by Wendover. He has done the same thing with his video on electric vehicles and others. He pushes out content without doing enough fact checking.
3-5usd to get it out, 50usd to maintain basic expenses, 80usd+ to maintain saudi vision 2030
When you really understand all the dynamics of how the nations work, it's truly terrifying
Any recommended video/articles,if you dont mind that is. 😄
@@muhamadhelmi7949 2nd this
Its kinda like a video game but the players are countries and almost all of them are trash lol
@@Entropy67 ****humans are forsaken****
This video is a warning sign for oil dependent economies in the emerging market. Since most of these countries don't have all the data to forecast peak oil, Public debt management will be crucial for development otherwise many countries will be even more poor. Diversifying the economy through each nation's particular strength is the key.
What strengths does Saudi Arabia have?
@@jerome_morrow the Hajj Pilgrimage, maybe dates, that's all I can think of.
@Uncle Ted yeah peak oil is a myth, frakking is crazy
Unless they get bailed out 🤔
This video is also so biased it hurts
0:32 I'm sure every other comment will point this out, but you switched the two countries. Hijaz was the one controlling Mecca while Nejd was the one based in Riyad
Yep, just wanted to write that
Yes, I was confused about that too
Just wrote it
I was just about to comment this, thanks for pointing it out,
LMAO
I had an economics professor at Syracuse university who claimed when I asked about it in 2016 that Peak Oil was just a myth and there could be no such thing due to market factors. Yeesh, but I loved the man. Since then I’ve changed my mind on many things
hes correct, peak oil is pure propaganda, a failed one too, was first created in the second palestian liberation war, quite the coincidence. oil price and equipment will just get cheaper until there's not enough oil to support the infrastructure. thats atleast a hundred years or more.
There has to be peak oil because oil is a finite resource.
@@samuela-aegisdottir meh, we probably won't ever run out of oil, there are probably enjoy hydrocarbons to destroy our atmosphere four times over. The issue is that nations are trying to shift away from oil in their electrical generation, and the young generation has a trend of being anti car centered planning, and this is without the environmental driving factors.
@@doctordoggo8604 Depends on how fast you burn it. Releasing carbon from its fossilized form is most likely a long term good for the planet's ecosystem, as long as you don't flood the atmosphere with too much it will be consumed and used by plant life.
@@samuela-aegisdottir There is finite to every thing ... question is oil usage has far exceeded the expected usage and we crossed peak oil predicted and calculated, taught to us by 22 years. So ... back to board and want to know what is Oil?
What I’ve learned: If you’re trying to build a credible, safe and Westernized society, make your assassinations look like an accident.
May have been worth mentioning that 'Peak Oil' as defined in the 1970s-2000s was an expectation of when Oil would be unable to match production to demand at all rather than a demand drop.
Exactly, the worry was that we would bot be able to produce more oil. Turns out that was not the problem.
Damn, thats quite a day-night change
peak oil meant world would have ran out of oil by 2020.
Peak oil as defined in the 1970s-2000s was always a nonsensical concept. Demand and supply are intertwined. If supply dropped the price would go up. That would have the effect of reducing demand (you'd be less likely to drive somewhere than walk or cycle if petrol cost twice as much, etc.) until the two matched. It would also have the result of opening up more sources of oil. The predictions of 'peak oil' were based on what was THEN economical to extract. It didn't include shale oil for example. Of course, now shale oil is financially viable because of increased prices. The only way 'production would be unable to match demand' is if there are price caps. That's why cities with rent controls are so expensive to live in.
@@milesrout it wasn’t a non-sensical concept. The assumption was that demand will go up dramatically especially in emerging markets. And at the same time it wasn’t clear how fast we would run out of cheap wells and the assumption was also that some reserves would always be too expensive to develop them. Now we might see a plateau because of the transformation to other energy sources which will move a lot of subsidies away from oil and hence production will stop growing. It never meant we would run out of oil or stop using it.
Speaking of tourism, it's hard to bring foreign tourists in after you have been developing the "Muslims only" image for decades. Even for many Muslims Saudi Arabia is far from being an attractive destination. And finally, the investment we see here is nothing really new when compared to what we have seen in the UAE, Qatar or Bahrain which have developed a much better image compared to Saudi Arabia. It's cool to go to Dubai, right?! But, how to create the same "cool" image and put it together with the name "Saudi Arabia" will be a big big task.
The deferent in experience you will had in Saudi Arabia/Qatar and Dubai , is the people. The thing that Dubai and Qatar lacks is the historic sites, nature , the local people that you can meet and experience the true feeling of visiting this country, have ever met a local in Dubai or Qatar? It’s so rare to meet them this’s why these places are sometimes called “soulless “ compared to Saudi Arabia which had the nature you can enjoy , the people you can meet, the culture you can experience
Even after all the investments, not many people will choose Dubai over the usual traditional vacation spots. A lot of people still have misconceptions about Dubai and think the place is farcical. So UAE has done very well but a long way to go. Saudi Arabia’s change will be the most difficult one
I mean if they just said: nope we won't make this an islamic country anymore, everyone has equal rights now and you can follow whatever religion you want and being atheist is legal now" i bet their image would instantly improve
@@ezix3753 Saudi Arabia may have nature and historical sites but they aren't well developed at all. There is very little pre-islamic left and the city of Mecca and other holy places are prohibited for non-muslims like me. Plus, the way they reconstructed Mecca looks horrid to me. I saw old pictures from 1910 - so much more impressive.
@@ezix3753 I don’t mind that Dubai is “soulless”. I’m visiting soon to have fun and spend money. I will only visit Saudi Arabia for Hajj someday. I wouldn’t feel comfortable just to vacation there.
I actually traveled more during the pandemic. Gas was $1.06/gallon I have a 36 galllon tank on my truck and filled it for $42. I went to 17 dif states, no traffic, just cruised the roads non stop. I put 10,000 miles a month on my truck for 7 months straight. I went everywhere I ever wanted, seen family havent seen in decades went to every monument/spot in the US I wanted to see. Best year for my bucket list accomplishments I will ever had.
That's a great pandemic story, good on you for taking that opportunity.
@@paulelephant9521 Thanks. I just knew there would never be another time in my life with 6 months off with full pay of $3,000/week. Up until that point I had 61 days off in 10 years So I was not gonna waste paid time off sitting in my house locked down.
Based.
@@greghannigan4702 You had a literal once in a lifetime opportunity and took it, congrats. Id like to do something like that one day
@@windoak2113 It was great, Srry that I dont think we will ever get that opportunity again. It was kind of what I invisioned retirement to be except I wont be making $6,000/month for free😂. You wouldnt believe how much resistance I got. I would call my friends out of state and tell them Im coming over and they would freak out you cant come over....and they were dead serious. I got to one of my friend's house and he literally talk to me through the door for like an hour then handed me a bag through the door with like cookies and some snacks and some other stuff in it was like nice talking to you bro....wtf...people were freaking out😂 Still to this day I think I am the only person on the planet that never got any strain of Covid and I broke all the "Rules" I guess it cant live in a Nicotine, Redbull enriched blood stream cause I was in contact with all kinds of people that had it and I never caught it as people around me were dropping like flies. I believe Redbull and Marlboros are the real vaccine.
This channels ability to break down complex topics and analyze difficult topics absolutely amazes me. I feel smarter after watching the videos. Very well done.
Unfortunately you are feel smarter based on false information. He claims that we are suffering in Saudi, women are mistreated... Blah blah blah Well, we Saudis are tired explaining. However, it gets to know Saudi, or mostly any other part of the world, to go to Twitter for example and ask for whatever you want yo know. Half of his video is not bad, but half is just repeated BS that were debunked and proven false. The Jeff Bezos story was 100% lie and all media came clean about it!!! Amazing how after a year or two of the lies, he comes and repeat them. It shows how little of a work he is doing and that he has an agenda.
It analyzes complex topics according to its agenda. So still you should search for yourself instead of getting easy information from an organization.
A Fine Example Of Putting All Your Eggs In One Basket
I mean oil or sand. I know what basket I'd go with.
“What do you mean “Oil runs out?”? Have you seen how big the reserves are?”
@@sirapple589 but how long will the world need oil? The industry is hardly over a century old, with plans to deviate away very soon. Can’t rely on oil and be a superpower for long.
Well funny because they also have all the sand and that’s why there is a glass shortage now. They’re cutting us off
Mohyeet Tginc Maybe 30 years at maximum before Oil is either unnecessary or borderline unnecessary. That’s just my uneducated guess anyway.
You made a massive error in the video. Saudi oil break-even price for profitability isn´t 85 $/bbl. This is a number that´s been floated around as the break-even oil price for the Saudi state budget. A humongous difference. Break-even price for Saudi wells is probably around 5-20 $/bbl to turn a profit. Now that is of course a major simplification as well, there´re normally 3 different break-even prices (and 4 for Saudis). The 3 being: A) break-even of gross profit (i.e you cover all the variable costs, but not fixed costs, it is still profitable in the short run to keep producing oil as without it you´d still suffer fixed costs) B) break-even of net profit. This is where the company earns a "profit" profit, so in addition to covering the variable costs, you also cover the fixed costs with your revenues. C) Break-even of capital costs. This means that you also cover the time value of money of your initial investments with the profits. And for Saudis and many other oil-rich nations, there D) Break-even of state budget where all of the profits from the industry are enough to cover all government expenditures.
Good points, but this video is about the state budget so the $85 mark is what is relevant.
This right here is why I don't trust Wendover to cover any political or historical issue. He simply is far too careless and does not care for details enough and make these sorts of fatal errors constantly. Not only that but often he simply completely misinterprets the lead cause for many of the topics he talks about and makes them out to be far more important than they are
yes! thank you for this comment, it annoyed me as well when he mentioned that.
It would be nice if someone could recommend him a good, basic three-year history or economics programme compatible with youtube influencer schedules.
@@Kyrator88 Ah the real question is why do you keep watching then lol
Man, hearing the name Standard Oil just makes me think. A lot of people don't realize how fucking massive Standard Oil was back then. They had to be split into seven different entities in 1911. A few of them became the massive oil companies we know now. Standard Oil of Ohio became BP, or British Petroleum, SO of New Jersey became Exxon while SO of New York became Mobil and they merged to become ExxonMobil. Standard Oil of California which was talked about in the beginning of this video became Chevron.
This is so interesting! Thank you, Sam! For all the work!
At 00:37, you switched places between Hejaz and Nejd. Nejd is in the middle whereas Hejaz is next to the coast of the Red sea
Shhhh, the half as interesting guy will find a mistake to talk about
*Me with an interest in the Hashemite family* Ah yes finally a minor error I can exploit!
Idiot! Just understand their thoughts, don't point out mistakes
@@shekharr2227 but the extremities guy would’ve found this out 1st tho
@@aagamsancheti1375 it's good that he pointed it though........we shouldn't be compromising when gaining information........
People are saying this is a warning for oil dependent economies, but that’s already what Venezuela was.
It's a warning for any one trick pony economy. See Detroit, or all the coal towns in the US. It's also a warning that if you don't address problems until the predicted issues are already starting to arise, it's probably too late to solve the problem. Now what was that problem about the planet getting warmer due to overuse of fossil fuels.... wasn't it supposed to bring rising sea levels and stronger storms?
Venezuela is not desert
@@Dudedubba Bolivia didn't break though. Bolivia has shown consistent GDP growth and poverty reduction for over a decade now. And it's kind of dishonest to talk about the growth or lack thereof of any of these countries without bringing up the fact that the US has been meddling in South America to maintain political and economic control, removing any government that refused to let US corporations exploit them through coups or crippling them through sanctions if the coups failed. Like, the US backed Bolivia coup just happened 2 years ago, and you want to blame the Bolivian government for the country not being perfect?
Well the way I see it, Venezuela was using oil to funding a public sector that collapsed when the price of oil did. Up until that point, poverty was going down and the nation was one of the fastest growing in Latin america, but it was all built on a bad foundation of oil wealth (which the country always had but never profited from until Chavez took power. I don't like Chavez, not at all, but he was the first Venezuelan leader to take advantage of the oil industry, even if it turned into a curse). It would seem like the mistake to learn from Venezuela is "don't put all your eggs in one basket" or the little piggy who built his house of brick instead of haye or wood. Also, don't give into populist leaders with "us vs them" ideologies. Am I wrong?
@@Dudedubba And what is Bolivia catching up from? From being a US puppet dictatorship up until the 50s? From drug sanctions resulting from a US anti-drug campaign started with the explicit intention of criminalizing and disenfranchising political opponents to the US republican party? From the 2019 coup backed by the US? As for "stealing a pipeline", countries nationalize assets all the time for the benefit of the country. The US government has a law that allows them to forcibly take land from people in order to build pipelines. Are you going to hold that up as proof that the US is a bad place for international investments? Eminent domain isn't exactly new, the US stole entire communities from their residents in order to build the interstate system. Have some understanding of history before you run out parroting lazy propaganda like a moron.
It's also worth mentioning that the 2014 oil price decline wasn't an unexpected event. Saudi Arabia deliberately increased production, allowing prices to fall as a means of carrying out a proxy conflict with Russia and Iran- The idea was that since the Saudis can weather a low oil price more readily than these other two countries, an extended period of low prices would hurt Iran and Russia more than it would hurt the Saudis, and they would be forced to scale back their support to the Syrians, allowing the Saudi-backed violent jihadists (sorry, "moderate rebels") to take over. This didn't go as planned.
wasnt just the saudis, other countries ramped up production too. I dont follow the oil industry super closely but that rise in production coincided with the US exploting more fields and fracking more. I'd also wager that many oil projects started during the sky high oil prices in the 2000s were starting to reach full production. there were also some new fields discovered in the 2010s which is thought to be a motivator for Russia invading Crimea. Iraq was steadily increasing oil production in the late 2000s and the 2010s since they started bringing in bids to exploit fields and their investments following the invasion were starting to pay off. I'd wager that the saudis did increase production to cause prices to drop even more since they saw an opportunity and took it
lol, the US was the biggest backers of Syrian rebels, those "moderate rebels", and supplied them with weapons, money, training, etc... by the way it isn't the first time they did that...but yeah let's pretend to be holier than thou
Not really an attack on Russia or others but it was an attack on US oil fracking. That made the US for the first time in decades an oil exporter. Saudis firgured if they drove down the price of oil the cost of fracking would run US domestic producers out of business. As it took about 55 USD in costs for a barell of oil for fracking while the saudis had it at 8 USD a barrell for them.
really love deep dives like this!
The only reason I know 0:32 has the countries in the wrong places is from playing Europa Universalis 4 - and they said games would never teach me anything! (Don't worry Sam we understand~but do switch those when you can.)
lol
I’m pretty sure that he can’t switch them, not without taking down the video and reuploading it.
I know it due to vic2 hpm
Given how my EU4 games go, I'd label them both as Incan Arabia.
Haha, EU definitely helped my knowledge of world geography!
So much of this geopolitical content are being produced lately, I cannot watch them all! I love it!!!
Makes a nice change from all the airline stuff. So much airline stuff.
@@kbonh22 the airline stuff is good too, but it is good to have a range.
In the end, what really matter are the natural resources. Saudi Arabia its a desert. No oil, no wealth. Real money are industry power. Russia are strong because has strong industry and strong natural resources to build the industry, and be able to resist from world economics blackmails... Japan has the strong fish industry as backup, and cheap fresh water as well... What makes a strong long run power nation are basically the farms and fisheries... No matter what happens to the world economy, its the food and industry power that true matter. And without cheap fresh water you cant support a strong industry... Its not only Saudi Arabia that is doomed to poverty... All nations without strong natural resources, at long run, cant compete with strong safety backup... They will always fall soon or later... In that region, only Turkey has the cheap water resources to build their own foods and industry. No water, no wealth. Soon or later, that extra cost will make you fall under stronger world competition. The best brains to be strong in cut edge tech, needs freedom of thinking, and religious societies will never be strong because of that, and they need to own industry to develop it, and no water no industry. All oil rich nations of the world, if dont have another resources, will fall no matter what. No oil, only industry power. No cheap fresh water and colder weather, no industry power to be able to do and sell stuff that the other cant make it... Saudi Arabia used to be strong nation in the past millennia, because they controlled the sea routes to europe... Now that wealth source are controlled by Egypt by Suez canal... Meca access control, will be the only safe source of wealth to Saudi Arabia.
I feel the same way.
Given that he got Hejaz and Nejd backwards, I wouldn't listen much....
Awesome video. Learned so much about this fascinating country.
He spoke about oil prices being volatile, it's volatile because it's linked to any major occurrence that is going on during the that time. But also oil demand has never been as big as it is today therefore Aramco has grown 50x times in size and production.
0:37 it's the opposite Hejaz on the left and Nejd on the right and there is more into it but thats not the subject.
Ikr 😅 He F-ed up the most basic thing
THANK YOU!
It seems to me that Norway knew it all in advance, that's why they are so conservative with their oil production. Norwegian oil policy is smart!
Is it though? They have their own dilemma going on, oil is still a huge part of their economy but they also want to be perceived as an environmentally conscious nation. So far the idea of electrifying the country and investing in other sectors, while simultaneously pumping oil and selling it has worked well. But now people are starting to question that idea and saying that just because the oil that is pumped in Norways isn't burned in Norway it should still be counted as an emission from their country. So the time of having their cake and eating it too is starting to come to an end. Either they are going to have to cut back on the oil and loose that money, or they will have to abandon the idea of being a leading nation for environmental consciousness. ...very simplified of course, and there is a lot more nuance to it. But they have problem related to their oil production for sure
@@eldsprutandedrake "just because the oil that is pumped in Norways isn't burned in Norway it should still be counted as an emission from their country" I personally think that ideally the country where the final consumption happens is where the emissions should count. Barring that, where the oil is burned is a better metric than where it's pumped. If consumers of oil cut down their usage enough that will affect how much it's profitable to pump in Norway and elsewhere.
@@eldsprutandedrake but then some mention that without the oil money, there is less money for welfare so many are contempt with oil
@@Coolsomeone234 Norway only uses 4% of oil profits in the yearly state budget.
@@Hjernespreng I'm aware of that but that's still a % of volatile oil prices.
Very well researched and informative.
Not well researched
Society wise it can’t even appeal to other Muslim countries. I know several Muslims across the world and while they all have differing views one remains the same: that Saudi Arabia is too medieval and zealous which is why most only go there for the Hajj but prefer holidays elsewhere.
i think you broke youtube comment
In my opinion, Saudi Arabia is movibg from a volatile economy to another volatile economy, tourism. You can see MBS effort by constructing NEOM and other entertainment centers across the country, but the problem is clear from the start, both oil and tourism dependent economy depends on the world economy. If oil prices skyrocket, flights would be expensive thus no one wants to go holiday in another country, since people are conserving their wealth and savings.
smart comment.
To be fair, Saudi tourism is not really in very bad situation (although still bad) since, unlike ordinal pilgrimage, Hajj is "compulsory", so it won't be short of demand. But indeed, apart from Hajj and Umrah (another form of pilgrimage), the only other attractive way of Saudi's tourism is mostly modern, image focused of "friendly for investor" and yet souless (much like Dubai). In addition considering pandemics (which not only negated effect of tourism in general but severely impact the steady pilgrimage as well) it is indeed volatile
Tourism is indeed volatile, but it normally generates quick results, quick returns. Tourism is a sector that doesn’t require much lengthy development (apart from the building construction). As soon as a complex is completed it can immediately operate and bring visitors in, which brings revenue. Unemployment rate would be lowered quickly too as training and hiring hospitality staff is not as hard as in finance or high tech sectors Nonetheless I believe the long term plan should be setting a manufacturing hub or tech hub/ financial hub to really bring in high-reward, sustainable profit
It is very much true. Although a lot of the new entertainment is designed so that Saudi citizens spend their weekends and holidays inside the country, paying for entertainment here (which can be taxed and employs Saudis). But creating an innovative economy takes a lot of time and would require a lot of investment for uncertain yield. Tourism has the advantage that you can implement it relatively fast and that it is a labour intensive sector - creating a lot of jobs for Saudi citizens (at least this is the plan). In time, with educational reforms and investments into R&D through private sector industries, this will change.
@@Dfathurr The thing is that Hajj does have limits - the mosque can only be built so big and the month is only that long... So there are limits on Hajj income. Plus, most muslims come from not so rich backgrounds. Spend a week for Hajj may require years of saving for many families - they aren't all that likely to spend another week in a high cost country like Saudi Arabia.
6:38 two days ago Shell sold its Permian Basin assets to ConocoPhillips for 9.5B. Some think that pressure from the EU lead them to leave, coupled with the relatively high cost of fracking extraction. That could explains Shell’s personal peak.
More than likely we have seen oil's peak. There isnt funding available to continue developing reaoirces quickly. The natural gas plays will stay strong for another 20 years but we are likely looking at a 10+ year period of no growth. Shale has disrupted the market. On the flip side oils most profitable days are still ahead. Production will slow faster the Demand leaving a lot of money to be made.
Shell just doesn't know what they want to become😂
It's why Japan is freaking out that the rest of the world is going to EV and not hydrogen-powered cars. Japan bet on hydrogen-power and realize it was the wrong bet and are quickly trying to change that and catch-up to NA and Europe.
Shell knows oil is dying. Their research division accurately predicted current global warming numbers 40 years ago. They know green fuel is the future and will slowly shift assets.
@@AlexHaans Shell is betting big on oil just not the extraction. They are still going full speed with petrochemicals. Chemicals are a lot more politically friendly than drilling. There are still billions to be made.
I never regret taking the time to learn from one of your videos.
Very interesting and informational video.
You made a problem around 0:37 with the map, Hejaz and Nejd are in the wrong places on the map, they should be switched
and Jabal shammar is missing in the north
Many other mistakes in this video Ethan! Thanks though for pointing this out.
And shows Dubai footage talking about Kingdom.
And he doesn't show Alahsaa :P
This is nitpicking. This is irrelevant to the video. It’s just regions of Arabia
I'd have never believed I'd live to see the day r/FormulaDank was referenced to in Wendover Productions
Yeah my jaw dropped when I saw that. And apparently Sam is a big Formula 1 fan
bwoah
@@kidslovef1155 He did a video on F1 logistics!
In the end, what really matter are the natural resources. Saudi Arabia its a desert. No oil, no wealth. Real money are industry power. Russia are strong because has strong industry and strong natural resources to build the industry, and be able to resist from world economics blackmails... Japan has the strong fish industry as backup, and cheap fresh water as well... What makes a strong long run power nation are basically the farms and fisheries... No matter what happens to the world economy, its the food and industry power that true matter. And without cheap fresh water you cant support a strong industry... Its not only Saudi Arabia that is doomed to poverty... All nations without strong natural resources, at long run, cant compete with strong safety backup... They will always fall soon or later... In that region, only Turkey has the cheap water resources to build their own foods and industry. No water, no wealth. Soon or later, that extra cost will make you fall under stronger world competition. The best brains to be strong in cut edge tech, needs freedom of thinking, and religious societies will never be strong because of that, and they need to own industry to develop it, and no water no industry. All oil rich nations of the world, if dont have another resources, will fall no matter what. No oil, only industry power. No cheap fresh water and colder weather, no industry power to be able to do and sell stuff that the other cant make it... Saudi Arabia used to be strong nation in the past millennia, because they controlled the sea routes to europe... Now that wealth source are controlled by Egypt by Suez canal... Meca access control, will be the only safe source of wealth to Saudi Arabia.
The MAIN reason why the USA western media falsely accuses CHINA of mistreating Uyghur Muslims is because they want to prevent the 1.6 Billion Chinese worldwide and 2.0 Billion Muslims from working together. Both these groups have been discriminated by USA and the WEST for decades and are more likely to work together. Chinese & Muslim nations working together will lead to US losing its dominance of the world. Plus this will gain Asia, Russia, Eastern Europe and African support too including the rest of the world such as Latin America.
Love your videos, keep up with the good work. People should come together and be more tolerant no matter where we are from. Diversity of race, culture, and beliefs are the greatest wealth human have. These diversities allow us to escape our monotonous lives and discover each others.
I love your 21 minutes videos instead of 15 minutes or 6 minutes!
"Its back to carpets for you" - James May
Flying carpets
If you're watching this from saudi arabia its time to break out your camels! - Jeremy Clarkson
Finally.
I wonder how they got those carpets to fly?
@@dennishough3709 I think it's got something to do with the Americans and the oil fields
Oil is the source of income (taxes) for governments in many countries. Here in India, oil is taxed at 260% (yes 260%). Saudi Arabia is selling us oil for a lot cheaper than what Indian govt is selling to it's citizens (oil prices in India are decided by govt). I wonder what would happen to the source of income of countries (taxes) when oil is not as prevalent as it is today.
Almost all developed countries (USA is an exception) have very high taxes on end products such us gasoline and diesel. Crude oil price is just a small percentage of the cost
Government will probably find anouther source of taxation. Probably electricity if we have replaced oil sufficiently. Governments are very creative when drawing taxes.
@@luka832 but the problem is indians are paying more for petrol ,diesel more than usa but their income is no where the income of us citizens even things like cooking oil and cooking gas have skyrockted
That is very good for india, it should be 400% :) it tax the rich and less pollution
@@mumu2635 all pollution 99% caused by westerners dude u ppl use so much energy per capita go and limit yourself from youtube first.
The author is heavily underestimating how actually hard it is to change literally anything in such conservative countries. The changes presented are already very impressive.
I think the issue is that the changes are a drop in the bucket in a sense. No one is worried about being allowed to drive when they're worried about remaining in one piece...
Given that he's got almost absolute power in his country and ample wealth to pursue many different projects, he's actually doing terribly. His ordered assassination of a foreign journalist in an embassy in Turkey shows that MBS literally doesn't even care to really change. He's not willing to be criticized; that means that he is not truly interested in making hard choices to fix things.
Hmmm. Yes, conservative intransigence hard to change; but ......crisis will bring change overnight.
MBS? Eyes on the world please. Not so much on the local prize.
Oil will be in the mix for a long, long time. Western patience, not so much.
Great video. One thing left out in the rise of oil prices was the timeline with our war we started with Iraq. I loved the reason it was started and the replacement reasons. That's another story, this is based on oil futures, the prices started going up at this time, they went up a lot. They never went down because we stayed, up to that $147 a barrel bringing on the "great recession". Prices crashed at this time but never to where they were. present day, man made crash minus-$38, now prices going up, oil $112, gasoline- all time high....
If you adjust oil prices for inflation, oil is actually cheaper today than it was in the 80s and early 2000s... dollar printing is to blame for much of the rise in prices of all commodities ... in fact, if you look at oil prices vs prices of other commodities, food, consumer goods, housing, over the decades, you will find that most of those went through higher price escalation than oil
As usual another great video by wendover but there are some wrong information that needs to be corrected. The cost of producing a single barrel of oil for ksa is about 5-8 dollars the 85 dollar per barrel is the amount the government need to cover its costs
In the end, what really matter are the natural resources. Saudi Arabia its a desert. No oil, no wealth. Real money are industry power. Russia are strong because has strong industry and strong natural resources to build the industry, and be able to resist from world economics blackmails... Japan has the strong fish industry as backup, and cheap fresh water as well... What makes a strong long run power nation are basically the farms and fisheries... No matter what happens to the world economy, its the food and industry power that true matter. And without cheap fresh water you cant support a strong industry... Its not only Saudi Arabia that is doomed to poverty... All nations without strong natural resources, at long run, cant compete with strong safety backup... They will always fall soon or later... In that region, only Turkey has the cheap water resources to build their own foods and industry. No water, no wealth. Soon or later, that extra cost will make you fall under stronger world competition. The best brains to be strong in cut edge tech, needs freedom of thinking, and religious societies will never be strong because of that, and they need to own industry to develop it, and no water no industry. All oil rich nations of the world, if dont have another resources, will fall no matter what. No oil, only industry power. No cheap fresh water and colder weather, no industry power to be able to do and sell stuff that the other cant make it... Saudi Arabia used to be strong nation in the past millennia, because they controlled the sea routes to europe... Now that wealth source are controlled by Egypt by Suez canal... Meca access control, will be the only safe source of wealth to Saudi Arabia.
@@ricardosilva4940 just one comment. The value of Japan's fishing is about $14 billion. Compared to the size of Japan's economy, that's absolutely nothing. Nobody thinks that fishing carries Japan's economy.
@@ricardosilva4940 What strong industry in Russia? Europe and USA sell countless products to the world. What does Russia offer to the world, besides oil/natural gas and military weapons?
@@DerekDavis213 They are a small nation to be able to compete against China in common citizens products consume manufacturing industry. Militar weapons, are more complex than cars and phones.
@@DerekDavis213 Militar industry, only sells, if it is world cut-edge level, to have militar superiority. Their best brains are diverted to militar industry, to develop and export very profitable militar weapons to all the world. Cut-edge level, are strong level, strong industry.
The first generation makes the money, the second generation spends some money, the third generation BLOWS the money. This is a perfect example of that timeless reality. BMS is simply pushing vanity projects instead of creating an actual, useful, technologically advanced economy.
Best information channel on the internet bar none!
Entirely basing your economy on a finite resource that literally everyone has is a great idea.
V. Fisher Desert sand is not useful for cement, so that doesn't work.
@@vfisher86 Only beach sand is valuable.
@@greatsageequaltoheaven8115 not really. Beach, ocean, and desert sands all have lots of issues. Beach and ocean sand has lots of shells and minerals and not to mention needs to be rinsed to get rid of the salt. The diversity in the shapes of the grains of these is way too high to be good for cement. Desert sand is salty too, although it definitely ranges. It is the right grain shape. The biggest problem with desert sand is that it is much too fine from wind erosion to be used in cement. The most wanted sand for cement is river sand! Its the right shape and size, and doesnt need to be processed too much before use. It is also very limited in deposit and can ruin the local environment if stripped out. This is why Australia imports sand from china despite being mostly a hot desert, having tons of coastal sand, and having a huge mining industry
The MAIN reason why the USA western media falsely accuses CHINA of mistreating Uyghur Muslims is because they want to prevent the 1.6 Billion Chinese worldwide and 2.0 Billion Muslims from working together. Both these groups have been discriminated by USA and the WEST for decades and are more likely to work together. Chinese & Muslim nations working together will lead to US losing its dominance of the world. Plus this will gain Asia, Russia, Eastern Europe and African support too including the rest of the world such as Latin America.
@@vfisher86 Atheism is not an ideology, it's a lack of one. China is a totalitarian state, and that's the problem, not atheism.
15:28 Ahh, Sam talking about memes on Wendover breaks my brain, despite the fact that it's normal if he does it on HAI
Sam is a FormulaDank memer lets fucking gooo
@@lobaandrade7172 Wait really? Nice
The owner of wendover is the same as HAI?
@@rohankishibe8259 it's entirely possible, I for one have never seen both of them in the same room together
@@monketok141 I have. They were in the same room on the fourth HAI mistakes video. They are clearly different people.
A very informative video on why the situation is how it is. I could however not follow your conclusion on how your (to be defined) radical systematic change would change the course for the better. What projects would a say democratic government pursue that the monarchy does not? How would a further increase of female labor force improve the situation, given that the unemployment rate is at an all time (?) high of 11% as you pointed out. Sadly your video ended somewhat abruptly, I would have enjoyed more detail on how the situation would need to change.
Great video! Thank you!
I’m more interested to see how the Saudi and Russian spat over oil prices caused a bunch of housewives in China lost millions in crud oil futures
Russia refused to adjust is oil production in accordance to the OPEC+ agreement. In response Saudi Arabia flooded the oil market with millions of cheap barrels of oil‚ this lead to the prices of oil worldwide dropping (Supply far exceeded Demand)‚ in some cases such as Canada a barrel of oil reached -37 dollars (Yes‚ thats a negative number) A lot of oil companies (especially small ones) around the world went bankrupt‚ many of them in the US and other places were bought by Saudi Arabia.
@@bonafidemonafide7810 OPEC is shooting themselves in the foot by manipulating oil prices, they are themselves causing the market instability which is crushing their economies
@Max Cheng It's called high stake gambling lol
@@daud1543 That long term play won't work, peak oil is on the horizon with disruptive Electric Vehicle technology going global. The golden era of the black gold is coming to an end.
I’m really enjoying how you guys keep talking about OPEC and Russia while what I really meant was how Bank of China screwed up their virtual futures market in China that forced those housewives to accept that -$37.5 oil price overnight
"[Women are] now allowed to leave the country without their guardian's permission." Implying that they're still required to have legal guardians.
@@kazisamir3411 Well that's good then.
@Aliyan ✪ Wahhabism is still rooted inextricably in Islam, even if it concerns itself with culture rather than doctrine.
@@kazisamir3411 we do for marriage unfortunately
Wahhabism was created by the west to label saudis Wahhabism isn’t real if you ask a Saudi or “wahhabi” what is Wahhabism they won’t know what your talking about
@@user-tn1oh3he8c I like to believe that the Saudis are sufficiently familiar with Western culture to know what we call their flavor of Islam. That would be like an American not knowing what a "gringo" is.
This video is really well made
Excellent documentary.
My personal universal list of best "THISSS"-sayers: 1# Doug DeMuro 2# Wendover Prod.
Nobody beats Doug's THISSS!
Chopping dissenting journalists into pieces and throwing the remains into a well is peak quirky.
Thiss is Saudia Arabia! Lets check out allits quirks and features of the Wahabbit Regime!
One of the better metrics that is pointing towards peak oil these days is energy in versus energy out. When oil was first being tapped in Texas, the number was closer to 200:1, and for shale fracking, that number is closer to 5:1. Saudi oil fields are still "easy" to extract from by comparison to other oil reserves, but the broader trend holds true.
At 0:34 you have the regions Hejaz and Nejd mixed up. Hejaz forms the coastline of the red sea while Nejd is the larger eastern region.
Cool channel ! The thing is you swtiched off both hejaz and najd on map up .. early in the video ❤
When r/formuladank makes it into a HAI/Wendover video it is considered the official F1 sub reddit
The Insane Logistics of Formula One Memes
Exactly, r/formula1 can go kill itself
@@fahizfarhan9325 r/formuladank FTW!
BWOAAAAHHH
sbinala
Sam: Radical.. Saudi Arabs: Yup Sam: Fundamental Saudi Arabs: go on.. Sam: Systematic change Saudi Arabs: and you lost me Edit: this comment is trying to poke fun at the Saudi government and not the people.
lol
Underrated comment
Wahabis
They’re called saudis.
@@AO00720 you are 100% right, my bad
This aged like milk.
7:04 I partially blame the electronic signs for gas prices at stations. They could now, easily change prices from day to day. And OH BOY DID THEY! lol
2:15 Um, you missed one king (Abdullah) between Fahd and Salman.
and mixed up between Hejaz and Nejd
@@hamzaqureshy9044 Yeah, but others had already noted it by the time I wrote my comment.
Ooh ooh! This was so good!! Please do Alberta’s economy next. Or Canada as a whole!!
Definitely want to see Alberta.
At 0:36 the territories of Hejaz and Nejd are switched around. Nejd is the inland desert of Arabia and Hejaz is the western coastal region where Mecca and Medina are found
Honestly just happy to hear singapore in such a nice vid
4:10 Saudis can "turn a profit" at a lot less than 85USD/bbl 7:33 Y-axis should be logarithmic if you want to demonstrate volatility genuinely.
the operational breakeven for Saudi oil is less than $3 and the total breakeven is about $12, the lowest in the world. This dude is referring to the state's budget breakeven price (oil price at which the gov budget is balanced). He has no idea what he's talking about. He probably read a couple of articles and wrote down some notes.
@@XXXXXksaXXXXX Hey I just had question about your comment. Is that the same as the fiscal breakeven oil price? Is it the price that would balance the budget of an oil-exporting country while accounting only for the oil exports or all exports?
@@SlazeM7 Hi, yes it's the fiscal breakeven oil price, typically used for an oil dependent country. But I think they account for all exports holding everything other than oil price constant. We can see the Saudi fiscal breakeven price got lower in recent years (even though their oil export volume went down) and that's because they introduced VAT taxes, higher tariffs, slashed salaries, and charged so many gov "fees" on the locals. The fiscal breakeven for Saudi went from about $96 a barrel in 2016 to a projected $66 a barrel for next year (2022).
@AMA @comet This is not my field of expertise, but as an alert, interested viewer I would expect 'surplus' for government-level accounting, and 'profit' for corporate accounting.
According to who, the Saudis? I notice that Wendover seems to very politely insinuate that a lot of the Saudi figures are “Hollywood accounting”. Maybe direct sales are profitable at lower prices.. but a country being funded by oil that’s lower than that is running at a loss. But a logarithmic scale is huge. 1986 was a massive crash. It nearly bankrupted Saudi Arabia and was a major contributor to bankrupting the USSR and ending the Cold War. Any commodity always follows a cycle. Scarcity, high prices, increased production to take advantage of high prices, excess supply, price crash, lower production… wash rinse repeat. That’s why commodities should only ever be used to fund legacy projects. Schools, universities, and hospitals. Infrastructure. Grants for economic diversification. And of course a rainy day fund. You never use them to fund day to day operations that taxes should fund. Bahrain and Norway are perfect examples of what to do to plan for a post oil economy.
Of all the things I didn't expect formuladank in a Wendover video. Lmao
Thanks from Slam Bang fishing lodge west coast of Vancouver island Kyuquot sound we specialize in good times
The best part of the video was the part about Skillshare. Hadn’t heard that before.
“MBS took on his country’s biggest challenge ever.” In my mind, I followed that with… “The free press.”
If you ever been there you would know how poor some people are there, and how brutally darker skin "immigrants" are treated in contrast to white "ex-pats", who enjoy many perks to stay. This has nothing to with God, nor Islam, nor any interpretation of those.
Sorry to disappoint you but the press is not as scary as you might think it is.
@@hall511 Saudi Arabia blockaded Qatar to force them to shut off aljazeera. Luckily that didn’t work That how much free press is scary to them
@@patrickkirby6580 While that was a part of it, it wasn't the main reason, Qatar and Saudi Arabia have had thaw relations since the 90s, it just finally broke down 2017.
What free press? There is no real free press in this world, if the news leaked by the press would made their government into a disadvantageous state, that would be the end of that journalism. Assange and Snowden is one of main examples of how this "Free Press" you are talking about. Every press exists but just a tool for some people with power to control the crowd.
An important prolog for a larger, deeper documentary. Thanks.
Its the other way around!!!
0:40 the description of Nejd and Hijaz is actually the other way around. Hijaz is on the coast of Red Sea
Correct me if Im wrong but I think the map you used at 0:34 is backwards, Nejd and Hejaz are mixed up?
This was actually such a good documentary! To the point, concise, enough detail without being too in-depth, all nicely wrapped up, and interesting overall. Been wanting to watch something simple (yet educational) for a while now, but I either find super in-depth/off-track documentaries or over simplistic 5 minute clips.
"running an economy on oil is not a good idea"-Someone needs to tell Alberta that.
The difference is Canada already has a diverse economy in Toronto.
@@niweshlekhak9646 Canada in general has a diverse economy, however, some regions like Alberta don't.
Alberta also has ranching and tourism.
@@abdullahrizwan592 Alberta also has ranching, farming and tourism.
What they really don't seem to understand is tourists don't want theme parks, they want ancient ruins.
oops!
Tell that to Vegas.
Tell that to Disney world.
Vegas and Disney World... 2 places that are diametrically opposed to the conservative culture of Saudi Arabia. Nevertheless I hear what your saying, but still, look at Egypt, look at Barcelona Spain, Rome Italy, Greece, Ankor Wat, the ruins around Mexico, Istanbul, so many others! These places are packed, constantly. I've been to most if these places and the charming ancient culture and structures is the reason I go. And why most world travelers go. So many people couldn't care less about places like Vegas and Disney world. Hell those places build their own versions of pyramids, eiffel tower, and Cesar's palace to draw people in! 2 very different types of tourists you're pointing out there.
@@morganangel340 There was nothing in Vegas prior to the rise in Casinos. People RELYED on Casinos to distract themselves. It was a home grown industry. Apples to Oranges situation
i don't know if someone already mentioned this, but you mixed up Najd and Hidjaz in the map that appeared at the start of the video
wow, fantastic video. best one I've seen you guys make. good job!! loved it!!
Bro keep it up, I straight up look forward to watching your videos every week. don’t never get bored or move on from your youtube thing you straight up providing a huge value and service to the world by making such good and educational videos. I support you 110%💯
Agree, it's just he tends to mention or put the orange turd in his videos, for no reason.
Dude, the island I live on used to be full of Offshore oil rig workers and companies. Now it's barren a lot of stuff has closed down within the 2010s.
“Lowly” tribes was a weird choice of adjective
He was comparing them to the entire Ottoman Empire
Thank you, good video. Aspect which could have been covered in this video is the fact that every time OPEC reduce the production to maintain the price, Russia captured the demand market.
“Saudi Arabia’s oil problem” Not a title I thought I would hear
What's next? France's Cheese Problem?
Dj khaled suffering from success
00:32 you swaped both names of the regions, Hejaz is the left one, Nejd the right one :/
It's a tale as old as time itself. Those in power do not want to make the necessary changes for their nation in fear of losing their power and riches.
hi! thanks for the very informative video! a minor error though, the map in 0:34 of Nejd and Hijaz territories should've been the other way around. otherwise, great job as always!
I am loosing my mind on that mix up
I can’t believe I get to consume this content for free. I feel like I’m committing a crime. SO GOOD.
You do. Now go to nebula 😉
Yes but also you watch ads
Yep ikr
You can always just go to North Korea and actually commit a crime by watching this video (I’m assuming)
🟦 SERCH ADITYA RATHORE-HE ALSO MAKES INFORMATIVE CONTENT LIKE WENDOVER PRODUCTION
You could’ve consulted a Saudi person before doing this - basic factual errors exist.
Note that in 1933 Saudi Arabi was founded in 1880. This doesn't mean that Saudi was founded in 1880: it mans that people can write history retroactively, and the Saudis and many of their friends have assiduously done so. Ever since 1933.
The stone sge didn't end for lack of stones, so the oil age will not end for lack of oil.
True. The stone age ended when people discovered the alternative bronze and metal. So oil era will also end when we will start using another energy source
Big brain here
The oil age will end when folk cannot afford to buy it
And now we're in the age of solar panels, living in a nation surrounded by sand sounds like an economic advantage to me.
@@mountainous_port yup and the whaling age didn't end till we started extractibng oil out of the ground. Here's hoping the alternative is better
Btw, shops can now remain open during prayer times. This was implemented in July of this year
In the end, what really matter are the natural resources. Saudi Arabia its a desert. No oil, no wealth. Real money are industry power. Russia are strong because has strong industry and strong natural resources to build the industry, and be able to resist from world economics blackmails... Japan has the strong fish industry as backup, and cheap fresh water as well... What makes a strong long run power nation are basically the farms and fisheries... No matter what happens to the world economy, its the food and industry power that true matter. And without cheap fresh water you cant support a strong industry... Its not only Saudi Arabia that is doomed to poverty... All nations without strong natural resources, at long run, cant compete with strong safety backup... They will always fall soon or later... In that region, only Turkey has the cheap water resources to build their own foods and industry. No water, no wealth. Soon or later, that extra cost will make you fall under stronger world competition. The best brains to be strong in cut edge tech, needs freedom of thinking, and religious societies will never be strong because of that, and they need to own industry to develop it, and no water no industry. All oil rich nations of the world, if dont have another resources, will fall no matter what. No oil, only industry power. No cheap fresh water and colder weather, no industry power to be able to do and sell stuff that the other cant make it... Saudi Arabia used to be strong nation in the past millennia, because they controlled the sea routes to europe... Now that wealth source are controlled by Egypt by Suez canal... Meca access control, will be the only safe source of wealth to Saudi Arabia.
@@ricardosilva4940We are late, but since 2015 we have done miracles in 6 years. We are making more than Argentina, and we will continue until 2030. It will be difficult, but oil will help us until then.
@@ricardosilva4940 you have a good point on the diversification of natural resources. Especially during war time and possible expansion. If your country can self support all of it's industries, it will do well. The US, for example, has long lost it's manufacturing to cheaper countries despite being a leader in food, energy and technology. If we were drawn out in a long way with China, they would out produce us and eventually win. That doesn't even include the population difference. And, just to specify, it's not just that we don't have the facilities for manufacturing. We don't have the trained personnel who have mastered the process. You would be hard pressed to find someone like a modern Henry Ford. Australia would be a good example of having a HUGE mining industry but just mediocre on the rest. Makes me think of "settlers of Catan"! 😁
If religious police are patrolling, what will they do if they catch you shopping at prayer times? Is it like that Spider-Man meme? “You shouldn’t be working as a police during prayer times either!”
"[Are] men whom neither commerce nor sale distracts from the remembrance of Allah and performance of prayer" chapter an-nūr verse 37
Well that video aged badly
Not really, if anything the current situation will hasten the adoption of renewable & nuclear energy sources which in turn make oil less profitable
@@Red1Green2Blue3 That's in the long term, not in the short term.
@@azogticmettroskik8904 so? The video wasn't solely about the short term. It literally says the price is volatile experiencing great peaks and troughs
You have 99999+ missed calls from the United States of America.
0:32 You can tell how much research went into this video by this map alone.
exactly 1.2 research
@@Brindlebrother aaw cute cat.pfp bro
Lol thank you
ههههههههههههههههههههههههههههههههههههههههههههههههههههههههه
LOL
Fun fact Abdulaziz ibn Saud was the last king to lead his troops into battle.
king saud and faisel used to lead battles too when they were younger
@@SALEHIII yes but not while they were king
"last" As if somehow wars and battle were somehow unanimously decided to be abolished. All it takes is a spark for that "fact" to not be such a fact anymore. Now if you had said "latest", then you might have a leg to stand on.
@@choo_choo_ Yes I suppose you’re right and make a good point I do mean the latest. I am young and naive and lucky enough to never have witnessed the horrors of war but I suppose you could argue war is on the horizon with the current global state of affairs. But I can feel pretty confident in saying Abdulaziz is the last king to lead his troops in battle because autocratic monarchs (most monarchies nowadays are constitutional and parliamentary) that need to secure the loyalty of their army by leading said army directly into battle so that a victorious general (and his mutinying troops) will not attempt a usurpation is a medieval concept. Xi jingping and Biden aren’t gonna be on the frontlines leading the PLA and US army respectively like Alexander the Great and his companion cavalry. This short video explains this better than I ever could Wacom kzhead.info/sun/h7mcppmylmSXpHA/bejne.html
hes 6 feet 9 inch tall too
This video has aged well…
the hard part is finding a research channel with really good production value and research that hasn't been noticed yet by corporations and power structures and therefore influenced and/or bought out by said entities....
10:15 Behold the new king of douchebags