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Is Social Unrest Coming To Saudi Arabia? New King Vows To Limit Oil Price Impact, Boost Security

Tyler Durden's picture




 

In what some note could be a pre-emptive strike against rising social tensions in The Kingdom, new (and potentially crazy) King Salman bin Abdulaziz vowed to limit the impact of lower oil prices on economic growth, demanding that his regional governors "listen to their citizens." King Salman then specifically noted, he would work to "achieve justice for all citizens with no difference between one citizen and another, one region or another," adding that he will "confront the reasons behind schisms in society." Concluding with a warning that "we will never allow for tampering with our security," the King vowed to "boost security forces’ capabilities to defend the nation."

 

King Salman bin Abdulaziz vowed on Tuesday to limit the impact of lower oil prices on economic growth, saying the kingdom will continue oil and gas explorations while in the meantime work to diversify its revenues. As Al-Jazeera reports, he explained:

“We strive to build a strong economy with diversified revenues, and work to limit the impact of lower oil prices on the development process,” King Salman said during a speech in which he unveiled his domestic and foreign policy agenda.

 

“Explorations of oil, gas and natural resources will continue,” the king said.

 

He stressed that the kingdom is “marching solidly toward growth” and that he would seek “complete, balanced and development.”

But then he went further. As Al-Jazeera notes, the new Saudi King unveiled more domestic and foreign policy agenda items, perhaps giving outsiders a glimpse at the 'problems' the nation is facing...

The king said he would work to “achieve justice for all citizens with no difference between one citizen and another, one region or another.”

 

“I directed the interior ministry to stress that regional governors [should] listen to their citizens.”

 

The king said the government will “confront the reasons behind schisms in society,” and “will eradicate distinctions threatening the unity of the country.”

 

“Sons of the country are all equal in rights and duties,” he said.

 

He said both the security and economic councils should “support citizens,”  adding that he would not “accept any complacency in offering citizens a decent life.”

The king also vowed to eradicate corruption and hold those responsible accountable.

“Security is everybody’s responsibility, and we will never allow for tampering with our security.”

 

He described security as a great blessing, and said it is the reason for the prosperity and stability of nations.

 

The king also pledged to “develop specialized healthcare services for all citizens wherever they are,” and highlighted “the necessary need to find housing solutions for Saudis.”

 

He said the government should “provide education that will offer results suitable to the development process and market needs.”

 

Meanwhile, he vowed that to "boost security forces’ capabilities to defend the nation."

*  *  *

Standard empty talking points? Or more concerning pre-emptive offers to keep the citizenry quiet?

 

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Tue, 03/10/2015 - 21:06 | 5875985 kridkrid
kridkrid's picture

Social unrest is coming everywhere. Enjoy.

Tue, 03/10/2015 - 21:07 | 5875991 Supernova Born
Supernova Born's picture

Heads will roll.

 

Tue, 03/10/2015 - 21:09 | 5875998 usednabused
usednabused's picture

Whose heads? Seems as if the king went to college in Merica the way he can sit there and lie to his subjects with a straight face.

Tue, 03/10/2015 - 21:22 | 5876036 NoDebt
NoDebt's picture

The Free Shit Army is strong with the force all over the globe.  With one speech Obama could topple the House of Saud.  All he needs to do is say "we support them fully" and it'll be instant revolution from within and without.

Don't get me wrong.  I have NO IDEA the reasons or consequences, much less the mechanisms that would make it happen, but I do know that if Obama endorses you and calls you friend (or even expresses his support of you), you're toast.

 

Tue, 03/10/2015 - 22:54 | 5876344 Paveway IV
Paveway IV's picture

"Is Social Unrest Coming To Saudi Arabia?"

No way in hell. Muslims in Saudi Arabia are a type of conservative Sunni, either Wahhabi (75%) or Salafi (25%). Both reject any other form of Islam as 'wrong', and Wahhabis go further and insist their ultra-puritanical 18th century interpretation if Islam is the only correct form. Either way, Saudi Arabia is the birthplace and homeland for revolutionary Wahhabi extremism. That's the little people's 'control' religion though, not the princes or oil sheikhs religion.

Jihadis don't have anything to do (jihad-wise) in Saudi Arabia, however. Everyone is already Wahhabi (or Salafi - close enough). That happened BECAUSE the House of Saud was Wahhabi and pushed it out to the rest of their kingdom. Wahhabi extremist jihadis job today is to spread the word outside of Saudi Arabia. Chop heads until fellow Sunnis see the Wahhabi light, or just chop heads off of everyone else until there's no more of them.

Salafism - a conservative, orthodox form of Islam - is becoming more popular, but still accounts for only a fraction of the two billion Muslims on earth. Wahhabism is an even smaller fraction. You pretty much have to force people to convert under threat of head loss. Spreading Wahhabism outside Saudi Arabia requires a very fanatical and well-armed jihadi militia, which only the princes and oil sheikhs can afford. They probably don't care too much about Wahhabism, but the fanatical armies come in rather useful at times. Say like when you need to put a pipeline through Assad's back yard that he doesn't care to allow. Or when competition from Iraq starts cutting in on your oil profits and you need Hussein taken out. Or in case you want to invade Iraq because... well, because they have oil and they're Shi'ite. Oh yeah, and their pretty massive army can kick your ass any time they want to; you may want to prevent that.

Nope - as long as the Saudis have money to throw around, they'll keep their private thug Wahhabi army busy somewhere else. They have no intention of letting those head-choppers back into Saudi Arabia for ANY reason. And they have plenty of domestic Wahhabi maniacs that are paid to kill anyone who tries to come back in. The large domestic Wahhabi population is also a good tool for control of the Saudi peons that serve them. How easy do you think it would be to start an uprising in a country that's already three-quarters head-choppin' Wahhabis? Even Nuland couldn't start a Saudi spring - Wahhabis don't allow that kind of nonsense in their countries.

I could see some kind of Wahhabi revloution there to purify Saudi Arabia from the apostate princes and oil sheiks. Trouble is that that's who feeds your 18th century extremist ass. Kill them and you don't eat - ever again. (Talk about killing two birds with one stone!) So I think that as long as the peon Saudis want to eat, they'll probably tolerate their apostate leaders. Kind of like how most 'free' U.S. citizen-consumers tolerate exploitation by their oppressive constitutional-destroying leaders - they keep the wheels turnin' at the Wal*Marts and McDonalds. 

Wed, 03/11/2015 - 00:17 | 5876546 Divine Wind
Divine Wind's picture

 

 

This is an excellent summary of the situation. The House of Saud has pockets deep enough
to spread considerale wealth far and wide in the Kingdom and keep the internal masses fairly content.
Give a little here, build 10,000 condos there, set up more free hospitals, perhaps let women
show their ankles....

 

Wed, 03/11/2015 - 02:13 | 5876650 Joenobody12
Joenobody12's picture

The Saudi ruling class are safe for now. the ISIS is not strong enough but unless they are wiped out, there is hell to pay in the future. A Saudi ruling class in bed with American has no future in the Islamic state. The Shiites , the Christians , the Israeli , the Saudi royalty and the arteficial borders drawn up by the West are all ISI targets. A united Arab nation is the vision that has attracted thousands of Arabs to the ME from all over the world. In the end, many a Saudi Royalty will escape to the West and live off their loots.

Wed, 03/11/2015 - 06:11 | 5876784 janus
janus's picture

Paveway,

i greened you and i agree with all you've said; but you're forgetting the very group to which the new custodian was tacitly targeting his remarks: the shia in the east, which just so happens to be home to many (if not most) of the major oil fields in s arabia.  i'm sure iran understands what he meant, as do the new shia(ish) junta in yemen...and, well, the shia majority in iraq could likewise be considered an interested party.  i wonder if the house of saud regrets forming such a tight alliance with likud?  i also know what i'm getting every wahhabi and salafi on my xmas list: the talmud (it's the gift that keeps on giving).

janus  

Wed, 03/11/2015 - 13:23 | 5878168 Paveway IV
Paveway IV's picture

Don't you think it's just lip service to the Shia though, janus? The King knows what he has to say, but the Wahhabi schools in Saudi Arabia still teach that Shi'ite Islam isn't legitimate Islam and is actually a Jewish conspiracy to destroy Islam! Shia are not allowed to hold any political offices on a state and regional level. I don't think they can even be mayors of their cities. There's a lot of them that work in the oil fields as laborers, but not so many managers or engineers and certainly no directors.

I see the transition from outright oppression of Shia in Saudi Arabia to a kind of benevolent religious apartheid, and I think the Shia will be relatively content with that kind of arrangement for years to come. It will be better than it was in their reckoning. Are a few million Shi'ites going to go so far as to try to take over the oil fields though? I just can't imagine that happening in the near future. You have ten million plus well-armed Wahhabis against a couple of million poor, unarmed Shia. Any assistance from another largely Shia nation (Iraq, Iran) is going to look like an oil-well grab and have serious repercussions to those nations from the West. Sympathy? Sure. Revolution or all-out war? That seems improbable to me unless the Saudis do something so egregious that they force Iraq or Iran to respond. I think the House of Saud will just play nice with everyone for now (until the get nukes), hence the lip service to equality.

The problem comes down the road when Iraq and Syria eradicate ISIS. Let's say the U.S. hasn't had Assad killed yet, the civil war ends and the Syrian Army is rebuilt. Iraq's army and Shia militias will become stronger as time goes on, and they'll have a good working relationship with Iran. If you have a resurgence of the military power of the Shia crest countries in five or ten years, then I can see them looking to stir up the Shia in Saudi Arabia for a little Wahhabi/House of Saud payback. The situation is going to get more tense and more complicated as time goes on. And yes, to your point, getting in bed with Likud was a fatal mistake for the House of Saud. I'm sure they see it as some kind of temporary alliance they can walk away from when the time suits them, but the Shia (Saudi or otherwise) are unlikely to be so forgiving.

I admit that this is all speculation based on the news and views that filter out to the West and what I can make of it. I could be completely underestimating the will of the Saudi Shi'ites. Hard to tell because they lose their head for writing op-eds about their masters in Riyadh. I think I understand all the reasons they would want change, but don't see the torches and pitchforks coming out anytime soon. In fact, I don't think they would ever be driven to that on their own, but the opportunity to exploit that sentiment someday has to be tempting to a lot of different parties. In my view, it seems much to risky for any of them to pull the trigger on that today. Disclaimer: my track record at front-running war mongers is rather dismal.

Tue, 03/10/2015 - 21:24 | 5876046 Harbanger
Harbanger's picture

The plebs need to be fed.  Saudi Arabia is an example of a  HUGE WELFARE STATE.  BITCHEZ! 

Tue, 03/10/2015 - 21:36 | 5876093 Harbanger
Harbanger's picture

Unfortunately most western plebs do not understand that Saudi Arabia is just another welfare state controlled by the same oligarchs.  No different than what the west has now, this is why a collapse and return to reality will do you good.

Wed, 03/11/2015 - 06:40 | 5876799 janus
janus's picture

all of arabia and north africa is a massive welfare state, with wealth redistribution concentrated at the top...tcns (Thrid Country Nationals (mainly bangladeshis and phillipinos)) do all the shit work and westerners do all the sophisticated stuff.  not really the kinds of economies capable of diversification and altogether different from advanced nations in every conceivable way.  the truly troubling element of arabia's dilemma is their inability to produce even a fraction of the food needed to support these massively disproportionate populations (disproportionate to the land's ability to sustain them).  but it was crafty & clever uncle sam who encouraged and facilitated the population explosions -- i mean, the best insurance against an oil embargo is the potential for a retaliatory food embargo.  

and we have, since balfore, ruled the region by this axiom: feed the arab, starve the persian.  looks like we may try and invert the axiom, though.  but i'm told the saudis are sitting atop an enormous aquifer; too bad their religion strictly forbids a full day's work.

as to a collapse, i agree that it's inevitable and will be necessarily ecuminical (and therefore 'good'); but with respect to reality's return, i'd have to ask at what point did we break with 'reality'?  looking back across the sweep of history, it all seems fairly surreal to janus.  and for my part, i want no part of any 'reality' that's ever existed, nor do i favor any of those currently promising to suffice as alternatives. and whatever is the next pseudo-reality to set upon the world's stage and swell a scene or two, i hope it's accomodative to jesters like janus -- and populated almost exclusively of hot chics.

janus 

Tue, 03/10/2015 - 21:42 | 5876113 nmewn
nmewn's picture

Ever notice how royalty always has the gold and the peeps only have barely enough bread to get by on till the next feeding time by the ones who have the gold?

I have ;-)

Tue, 03/10/2015 - 21:50 | 5876147 Harbanger
Harbanger's picture

The sales pitch is all about fairness, Bro.

Tue, 03/10/2015 - 22:15 | 5876246 nmewn
nmewn's picture

Thats the pitch alright. But many are absolutely ecstatic with three squares and a cot, I just can't figure it out.

And so is the praising of "royalty" in all its forms.

Ever notice (I got a million of em...lol) how the media goes gaga when "royalty" has a baby or waves to the plebes from on high or deigns to step a pampered foot on our shore?

Yeah, those are the members of the sycophantic royal court, trying to keep up the illusion that someone else wipes their ass after they take a shit.

All...just an illusion of authority.

Tue, 03/10/2015 - 22:26 | 5876287 Harbanger
Harbanger's picture

It breaks my heart, our need for a king figure.

Wed, 03/11/2015 - 04:21 | 5876728 RichardParker
RichardParker's picture

Royalty?  They're the biggest fucking welfare recipients on the planet.

Wed, 03/11/2015 - 06:45 | 5876803 janus
janus's picture

let them eat cake.

Tue, 03/10/2015 - 21:31 | 5876075 billybobtx
billybobtx's picture

We rolled some folks' heads.

Tue, 03/10/2015 - 21:10 | 5876005 BrosephStiglitz
BrosephStiglitz's picture

Agreed.  However, the Middle East in particular, is a powder keg waiting for a spark.  

Tue, 03/10/2015 - 21:14 | 5876017 booboo
booboo's picture

Anagram for Salman bin Abdulaziz,

"I am a blind nasal buzz"

fits pretty good

Wed, 03/11/2015 - 06:57 | 5876815 janus
janus's picture

how bout: lazzi bald animals nub  

Wed, 03/11/2015 - 02:19 | 5876655 man of Wool
man of Wool's picture

"Security is a great blessing".

 

You do not understand.

Tue, 03/10/2015 - 21:08 | 5875994 One And Only
One And Only's picture

“achieve justice for all citizens with no difference between one citizen and another, one region or another.”

...and unicorns, and pots of gold, and rainbows

In the mean time continue with the beheadings.

Tue, 03/10/2015 - 21:10 | 5876002 847328_3527
847328_3527's picture
Encana cuts 2015 budget after 85 percent fall in operating profit

 

http://news.yahoo.com/encana-operating-profit-falls-low-gas-volumes-oil-...

Tue, 03/10/2015 - 21:11 | 5876006 Goldilocks
Goldilocks's picture

FOAD!

Tue, 03/10/2015 - 21:13 | 5876011 Billy Shears
Billy Shears's picture

Big brother has spoken! 

Tue, 03/10/2015 - 21:13 | 5876012 Kaiser Sousa
Kaiser Sousa's picture

fucking rag head apostates...

wouldnt even exist if it werent for that piece of shit KissinJew and his MoneyChanger sponsors...

DEATH TO THE HOUSE OF FRsAUD AND THE MONEYCHANGERS...

 

Tue, 03/10/2015 - 22:23 | 5876276 TeethVillage88s
TeethVillage88s's picture

Was just thinking we need more video links to Henry Kissinger and Zbignew Brezinski... well and pornos of his daughter (can I say that, is that a compliment to her, are her pictures public, and is she sort of nice to Paparazzi?)

lol

Hey ZH wants to know Geopolitics and Realpolitik... Bring the History Lesson.

Subtle request to Tyler Durden.

Sorry Geopolitics is very broad.

Geopolitik is the branch of uniquely German geostrategy. It developed as a distinct strain of thought after Otto von Bismarck's unification of the German states but began its development in earnest only under Emperor Wilhelm II. Central concepts concerning the German race, and regarding economic space, demonstrate continuity from the German Imperial time up through Adolf Hitler's Third Reich. However, Imperial geostrategist, German geopoliticians, and Nazi strategists did not have extensive contacts with one another, suggesting that German geopolitik was not copied or passed on to successive generations,[citation needed] but perhaps reflected the more permanent aspects of German geography, political geography, and cultural geography.

-

- Well so they say that German Geoplitik was not passed on

Kissinger, Brzezinski and the Grand Chessboard (sorry I Don't know anything about this subject)

"Three years after Kissinger’s Dilpomacy, Brzezinski followed suit, launching The Grand Chessboard. American Primary and its Geostrategic Imperatives and, after three more years, The Geostrategic Triad: Living with China, Europe, and Russia. The Grand Chessboard described the American triumph in the Cold War in terms of control over Eurasia: for the first time ever, a “non-Eurasian” power had emerged as a key arbiter of “Eurasian” power relations.[25]"

Tue, 03/10/2015 - 22:58 | 5876383 joego1
joego1's picture

Yeah and Mohammod fucks camels.

Tue, 03/10/2015 - 21:13 | 5876013 Gringo Viejo
Gringo Viejo's picture

Fuck that bearded twat!

And fuck his piss boy, Obama!

Tue, 03/10/2015 - 21:14 | 5876018 Porous Horace
Porous Horace's picture

He also said, "Read my lips... no new taxes."

Tue, 03/10/2015 - 21:15 | 5876023 hairball48
hairball48's picture

Sounds more like Santa Claus and a "wish list"  to me.

Tue, 03/10/2015 - 21:18 | 5876025 JustObserving
JustObserving's picture

Saudi Arabia has no doubt protected its oil revenues with options and futures with the plan it hatched with Kerry on September 11, 2104. So Saudi Arabia is comfortable with low oil prices.  The question is for how long? Perhaps, as long as its masters in Washington want.

Tue, 03/10/2015 - 21:35 | 5876089 nmewn
nmewn's picture

This "royal family" is only interested in what every other royal family on the planet is interested in, namely protecting their own royal necks.

So in this instance (under circumstances they brought on themselves long, long ago) they'll pay out the freedom rope over time, "allow" some drivers licenses to the ladies, the beheadings will become fewer and fewer, liquor at some point will be widely available, even churchs, temples or synagogues will be "allowed" by his majesty's heirs.

They just don't want to be the last prince standing in line for the loot ;-)

Tue, 03/10/2015 - 21:20 | 5876037 TeethVillage88s
TeethVillage88s's picture

Was Social Unrest Missing in Saudi Arabia?

You all are pussies, the writer is a pussy!

- Ain't it hell to have to publish shit from guys that never were working overseas or dealing with overseas governments??

Jeezus F***, what the hell was ZH Thinking?

- The Saudi Royal Guard is there to defend against the people, WTF?
- Military Spending in Saudi Arabia is about Defending the Royalty not the Borders or the People

- ZH Pull Your Head out of Your Ass

Tue, 03/10/2015 - 21:26 | 5876057 NoDebt
NoDebt's picture

You seem to have a better read on this than I do.  Mostly because I don't have a clue what the fuck you're talking about.

Probably good enough reason for the US to stay the fuck out of the middle east.

Tue, 03/10/2015 - 21:37 | 5876094 TeethVillage88s
TeethVillage88s's picture

Thank You.

"King Salman then specifically noted, he would work to "achieve justice for all citizens with no difference between one citizen and another, one region or another,"

Saudis don't recognize peons. The foreign workers may be Muslim or not. They are S**T. And when a project slows down, the foreign workers all have no rights. They will be treated as Chattel as they always were. Only now they have not income, no standing, no status, no visa, and citizenship or sovereignty.

- You are either Royal in the Middle east or you are Peons.
- This is True for all Citizens of Kingdoms in the Middle East, Royalty is the only Class, All other Classes don't Exist, in fact a Royal will never meet with a Commoner, You will meet with another Peon

Tue, 03/10/2015 - 21:57 | 5876176 TeethVillage88s
TeethVillage88s's picture

Sorry I made a mistake there is no Double standard.

The Saudi Arabian Government is just like the USA, Execution, Law Enforcement, Freedoms... UAE, Baharain, Qutar,... These are beautiful people.

I don't know what I was thinking.

The Support for Geneva Conventions, US Declaration of Independence, and US Constitution are all Preserved in these Nations.

We are all Safe.

In fact go kiss and embrace on beaches in Saudi Arabia.

Rent a car with your wife on the Drivers License in Afghanistan or Saudi. Live it up.

90% of Military Assistance or Spending in Saudi Arabia is to Defend the Saudi Royals. Your US Tax Money At Work.

Wed, 03/11/2015 - 01:55 | 5876643 ThirdWorldDude
ThirdWorldDude's picture

Saudi rejection - a punch in the nose for Sweden

The new Swedish social-democrap FM Margot Wallström was not allowed to address the Arab League meeting in Egypt because she is of the wrong gender. This puts at risk the Swedish-Saudi arms deal worth a few hundred million FRN's a year (HBTQ's homeland Sweden also sells weapons to other 'democratic' regimes such as UAE and Qatar). 

Irony doesn't seem to have an end in this farce - exports by Sweden's death industry exceed 1 billion FRN's per annum and discontinuation of current arrangements with authoritarian regimes will erase all the trade balance gains that Swedes just love to brag about. 

Tue, 03/10/2015 - 21:27 | 5876061 TeethVillage88s
TeethVillage88s's picture

I am Teeth, I support this message assholes.

Tue, 03/10/2015 - 21:33 | 5876084 Downtoolong
Downtoolong's picture

"boost security forces’ capabilities to defend the nation."

 Starting with King Salman bin Abdulaziz, of course.

Tue, 03/10/2015 - 21:52 | 5876154 pupdog1
pupdog1's picture

... he would work to "achieve justice for all citizens with no difference between one citizen and another, one region or another...

 

"I'll cut their motherfuckin' heads of regardless of their race, their color or their creed!"

     --King Salmon

Tue, 03/10/2015 - 22:10 | 5876197 Prometheus Unbound
Prometheus Unbound's picture

I see a future where, like Grozny or Aleppo, conventional arms purchased through oil rumble in, "liberated" from depots and army factions who are badly trained and barely allied to the state. And, as ever, the architecture defines the engagement. 

http://www.liveleak.com/view?i=beb_1283125170

You'll note: no longer can you see the footage, someone spiked it. Hint: It's a Russian tank squad being ambushed from high-rise flats in that conflict.

Build large high-rise buildings with streets the width of four tanks, you get what you pay for (which is why.. European streets and Moscow were designed the way they were).

 

Oh, pffhh. Can't continue the war-pr0n nonsense. Saud is gone, but it's water and climate that does it. 10 years, place is a death zone. 48oC = death of trees; 50oC = death of all organic life. You're living in a Mars Simulator and it just falls apart. There's small bubbles that keep existing as long as the cash does, but it ultimately disintergrates and the entire region just ceases to be relevant. (Note: they spend their last wealth on Mecca and when that falls, it's bad - about 100 mil deaths).

It's already happened, you're just too stupid to see it.

Wed, 03/11/2015 - 20:21 | 5879780 Prometheus Unbound
Prometheus Unbound's picture

Day 1 - well, Tyler can see the shills already.

 

-3 and no reply? Such Huffington Post stuff.

 

https://www.youtube.com/watch?v=uAsV5-Hv-7U

Tue, 03/10/2015 - 22:09 | 5876217 Wahooo
Wahooo's picture

Damned socialists. They never learn.

Tue, 03/10/2015 - 22:10 | 5876221 dsty
dsty's picture

The king is gonna reap what he has sown,

actually that goes for us all

Tue, 03/10/2015 - 22:30 | 5876302 Reaper
Reaper's picture

The Saudi King also has to keep up his tribute payments to Egypt and other Sunni entities, in addition to satisfying his local layabouts. http://www.reuters.com/article/2014/01/30/us-egypt-saudi-idUSBREA0T0C920...

Tue, 03/10/2015 - 23:29 | 5876480 Bemused Observer
Bemused Observer's picture

This is why the Saudis will never cut back production...lower prices will just make them pump more. They must maintain the cash flow...

Wed, 03/11/2015 - 00:17 | 5876548 wisefool
wisefool's picture

There is a shitton of potentates that have honorary peerage titles in the Great Saudi Monarchy. The Bounus is that every single one of them, including the top slotters, were born after 1913.

Wed, 03/11/2015 - 00:37 | 5876572 Farqued Up
Farqued Up's picture

Security everywhere, only govt can provide it, be thankful we have benevolent govts to take care of us. No, wash your mouth out, it is not a 50% shakedown. It is SECURITY!!!!!

Wed, 03/11/2015 - 01:11 | 5876601 thetruthhurts
thetruthhurts's picture

They will be our friends until we say they aren't....

Wed, 03/11/2015 - 01:36 | 5876628 Sandmann
Sandmann's picture

I bet most students in Saudi study "Islamic Studies" and have no work other than the bureaucracy or religious police unless exported to cause trouble elsewhere

Wed, 03/11/2015 - 07:22 | 5876841 Lumberjack
Lumberjack's picture
Exclusive: UBS poaches Bank of Montreal oil banking team - sources

http://www.reuters.com/article/2015/03/11/us-moves-ubs-ag-bmo-idUSKBN0M6...

 

(Reuters) - UBS AG has poached a U.S. team of some 15 oil and gas investment bankers from Bank of Montreal (BMO), significantly weakening the energy dealmaking capacity at Canada’s fourth-largest bank, people familiar with the matter said.

The moves come amid plummeting oil prices that have prompted banks to try to lure talented energy bankers with deep technical expertise. Such bankers can help them win newinvestment banking business from companies that want to shed assets.

The investment banking business in the oil and gas sector has shifted as lower oil prices weigh on the companies' growth prospects. The business is no longer focused on initial public offerings, and now primarily involves advising companies on deals to raise cash as their earnings dwindle.

Those leaving BMO are part of a specialist group dubbed Acquisitions & Divestitures (A&D), the people said this week. This group carries out the complex engineering and technical research needed to value oil and gas deposits far beneath the earth's surface.

The leader of that BMO team, Miles Redfield, is based in Houston, Texas, where he will remain as he also takes on a senior role at UBS, the people added.

 

UBS declined to comment. Redfield could not be reached for comment. The people asked not to be named as the discussions were not public.

Wed, 03/11/2015 - 08:55 | 5877016 Mike Honcho
Mike Honcho's picture

SA only specializes in proxy war and oil, one would think that simple economic system would be easy to handle.

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