Why would Saudi hike output, if supply is "not an issue

NoWorries · Tar Sands Joined: Jun 05, 2008 Posts: 78

http://biz.yahoo.com/rb/080610/saudiarabia_oil_cnbc.html?.v=1

I'm not a doomer (as those around here will know). I'm just asking the question. The Saudi line has been very vocal of late, saying the current high prices are not related to supply concerns. Yet today they increased production in order to calm the market (which it did).

If this is all merely a speculative bubble, then the prices should ease once the reality (of abundant supply) sets in, right? Therefore Saudi intervention in the form of increased output should not be necessary.

Serial_Worrier · Heavy Crude Joined: Jun 05, 2008 Posts: 233

Well this is more proof that a 6 billion die-off is imminent.

BigTex

You guys are hilarious.

NoWorries is squaring off against Serial_Worrier.

I predict a flurry of worry fury as this topic gets sorted out.
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seahorse2 · Expert Joined: Oct 18, 2004 Posts: 1899

No worries, you are correct, the Saudi position is contradictory. The world is either well supplied or it isn't. So, raising supply after repeatedly saying supply isn't the issue creates something of an enigma.

criticalmass

Think that's funny? The following is quoted from BP's cheif:

Hayward said the world was not running out of oil and gas and, according to BP's estimates, there were nearly 42 years of oil reserves left in the ground and 60 years of natural gas.

"We have produced around 1 trillion barrels of conventional oil, we are sitting on another 1 trillion barrels of proven reserves and yet another trillion of non-proven reserves,'' he said.

Nearly 42 years left? So we're not running out but there's admittedly only 42 years left!?

Dude.

MacG · Light Sweet Crude Joined: Jun 04, 2005 Posts: 1176

Dezakin · Light Sweet Crude Joined: Feb 09, 2005 Posts: 1360

Micki

42 years or longer, yes, but once again nobody mentioned Net Energy.
We have ever smaller, deepers wells/fields with poorer quality oil and stuff like shale, tar and sand rather than high pressure near the surface light sweet.
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Dreamtwister · Fission Joined: Feb 06, 2006 Posts: 2196

OilFinder2

The fact they can raise production by 300K bpd and OPEC by 500K bpd indicates that "supply is not an issue." If they weren't able to do so, then supply would be an issue.
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Abundance - what a concept!

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