Monday, May 2, 2016

The Saudis Know Something About Oil That Most Of Us Don't -- Rick Newman -- Yahoo!Finance -- Nomination For Geico Rock Of The Year Award -- April 2, 2016

Another "fluff" article from Yahoo!Finance with an eye-catching headline: The Saudis may know something about oil the rest of us don’t. Considering they produce 10 million bopd and most of the rest of us don't, I would hope the "Saudis" know something about oil that the rest of us don't. What an incredibly lame headline / thesis.

The writer seems to be overly excited about the "Saudis" monetizing their assets. In fact, they will be monetizing less than 5% of the implied value of Saudi Aramco and they are pretty much monetizing downstream assets. This has nothing to do with selling their oil in the ground, except marginally --- and an incredibly tiny margin at that.

Why they are doing it is anyone's guess. We've talked about this before. But just the fact that they are doing it speaks volumes.

Regardless, Rick Newman, noting that the Saudis probably know something about oil that you and I do not know about has nominated himself for the 2016 Geico Rock of the Year Award. Congratulations.

The Politics Page

The Weekly Standard is reporting:
Hillary Clinton has a very complicated opinion of coal. In March, she proudly declared, "we are going to put a lot of coal miners and coal companies out of business."
Now, she says she wants to see coal "continued to be sold and continued to be mined."
Which is it?
But what is it about the progressives that want to put Americans out of work. She wants to ban fracking, also.  Although her position on fracking is probably complicated, too.

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