Comments by "Paul Aiello" (@paul1979uk2000) on "Saudi Arabia Is Probably Lying About Their Oil Reserves" video.

  1. Having a lot of oil, gas and other natural resources is a blessing and a curse, it can be a blessing with sound economic management and planning but in most cases, it tends to be a curse because the countries that have a lot of these resources tend to be very wasteful and don't do the major political and economic reforms to modernize the country and they end up being too dependent on that natural resource. I think the real lucky countries are the ones that have little to no natural resources because they have to do the reforms to be competitive, that longer term could also give them a major economic advantage in the future when they generate a lot more of its energy means internally as they would get a massive windfall of money that isn't being exported to other countries and can be used internal on social programs and we're talking a lot of money. Almost all countries that have a lot of natural resources should really be doing a lot better economically and most are doing quite poor with the exception of Norway which are doing the reforms whiles using its natural gas wisely, hence why they have one of the best living standards in the world, but they are the exception to the rule, most are very wasteful with that resource and these countries need to worry because with everything that is going on in Ukraine and the EU is very likely going to change the entire energy market a lot sooner than expected, basically, a lot more countries are going to want to generate most if not all their energy internally because of energy security reasons. The EU countries could lead on that thanks to Putin forcing their hands, in other words, I think short term, EU countries will find alternative sources to oil and gas but over the next decade or two, I think they are going to ramp up producing a lot more of their energy internally by renewables and other sources. To put it another way, Putin might have helped to kill the fossil industry and decade or sooner than it would have been and the longer the price stays high, the quicker it's going to kill that industry, especially now that there are a lot of angry people that are putting a lot of political pressure on governments to change, in other words, no more foot dragging on renewable and they are likely going to go all in, with that, it's going to be very interesting to see the energy market over the next decade, especially in the EU.
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  2. True, as more renewable energy sources come online, it's going to reduce how much oil and gas is needed for those countries and with everything that is going on in Ukraine and the EU, it's very likely that the EU countries are going to ramp up renewable energy production a lot more over the next decade with the aim of producing most of its energy internally. The pace of change is always dependent on need, before Putin used oil and gas as a political weapon, the EU and many countries around the world could afford to foot drag on renewable energy, now it looks like that is changing where energy security is becoming a real issue and that's very likely doing to reduce the need for fossil fuels a lot sooner than it would have been, especially in Europe and as they do it, others will follow just to stay competitive. Putin's aggressive might have wiped out a decade or more of the fossil industry which is trillions being wiped out over the coming decades for those countries and the funny thing is, countries that buy a lot of oil and gas from external sources and they in time produce a lot of their energy internally by other means would stand to save billions per years which could go to other social programs whereas countries that depend on that fossil energy stands to lose a lot of money. Honestly, it's in the interest of the fossil producing nations to stabilize the price of energy before rich countries go all in on renewable and alternative energy sources, to put it another way, the longer and higher energy prices goes, the quicker that industry is going to kill it's self off with the renewable energy industry being the likely winner, so as painful as it is having these high energy prices, I actually love it because this is what allows real change to happen in a much shorter space of time then it would have happened and the EU countries are primed to take advantage of that because they have to change now.
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