july 20, 2005
Did I Say Oil
Prices Might Fall?
Below I wrote of the possibility we could be paying a
lot less for gasoline next year. But there’s also
a nightmare scenario...
As you may have heard, the U.S. embassy in Saudi Arabia
is warning that another terror attack on westerners
inside the Kingdom might be in the works.
But some terror analysts still await the “big
one”— a terror strike against Saudi Arabia’s
huge oil pipeline network. The pipeline is heavily
guarded and not easy to hit, but there are 10,000 miles
of it, and Saudi’s security apparatus is said to
be rife with al Qaeda members or sympathizers who could
help facilitate such an attack.
Saudi has more than a quarter of the world’s oil
reserves, and a successful attack on its pipeline network
would of course lead to cataclysm on the world oil
market.
But would some Saudis actually want to destroy their
own oil industry, which lays the golden eggs? Yes.
In some extremist quarters, the oil industry is viewed
as a corrupting influence on the Saudi nation that
serves western infidel interests and is the main pillar
that keeps the hated Saudi family in power.
