Saudi Arabia stopping production expansion plans after 2009

seahorse · Expert Joined: Oct 15, 2004 Posts: 2256 Location: Arkansas

Saudi Arabia will not be expanding production capacity after 2009 (its target to get to 12.5 mbpd).

seahorse · Expert Joined: Oct 15, 2004 Posts: 2256 Location: Arkansas

Many PO pessimist do not believe the Saudis will ever pump 12 mbpd. However, even if they can, this is far less than the optimist are projecting for the Saudi's to produce over time. So, the news that Saudi Arabia will be stopping production capacity at 12mbpd and will leave other finds untapped for future generations does not help the optimist case, i.e. the Lynch's and CERAs.

EnergyUnlimited · Fusion Joined: May 15, 2006 Posts: 3385

Saudis have clearly reached their peak and no amount of investment can increase their production anymore.

They don't want to admit it yet.

Dan1195 · Heavy Crude Joined: Mar 19, 2005 Posts: 277

This is a clear sign that expectations on OPEC meeting further increases in demand are simply not going to pan out, something many here have believed all along. It is more likely the "we don't want to" is code for "we can't".

roccman

Huh...??

Seems a bit odd.

I thought they said they had plenty of oil.

Oh well...TOD, PO.com, and every other person on the planet that has done the reading will be proved right.

Wonder if this means food continues to soar and at some point rationing sets in.

Wonder if this means gas continues to soar and at some point rationing sets in.

Wonder if this means our economic meltdown continues its bone crushing thud.

Wonder if this means because of this credit meltdown unemployment continues to soar.

Wonder if this means we continue to grow food for our cars.

or drill in unstable methane beds...

or start another war at $8000 a minute.

I say all of the above and more will happen...like

Because of rationing and hoarding...the draconian teeth of PAI and II, MCA, JWMRA, Dirrectives 55 and 1955, and the repeal of PC BITE HARD...think KBR detention facilities.

Because of civil unrest and chaos - selections in Nov. are "postponed"...

Because of hyperinflation the Amero is rolled out.

You think this is tin foil...??

KSA TAPPING OUT PRODUCTION WAS TIN FOIL LAST YEAR.
_________________
"There must be a bogeyman; there always is, and it cannot be something as esoteric as "resource depletion." You can't go to war with that." Emersonbiggins

"... hope is a rotten-thighed whore" Niko Kazantzakis

We are going back to roccland - me

frankthetank

This is getting better every day. I'm guessing rationing and price controls at some point. Then get ready for empty shelves and mass unemployment. Negative growth doesn't work well in a growth based economy.
_________________
Clothing should be optional.

Homesteader

Hey wait a minute, this cant be true. Didn't that Norwegian oil expert recently say that KSA production was going way, way up by 2030, like doubling or something?

Sorry, looked but couldn't find the article, so working from memory.

vision-master

roccman

vision-master

rockdoc123 · Light Sweet Crude Joined: May 16, 2005 Posts: 1712

the reactions here to this news seem over the top to say the least. The Saudis are not saying they have abandoned the goal of having 12 MMB/day capacity...all of those projects are underway and fully funded. What they are saying is they plan on waiting to see what happens in the market in order to make sure they aren't spending a bunch of money on projects now when they could delay that spending.
I believe that given the current pricing the Saudis are quite happy with the cash flow they get from their 8 or so MMB/day production. Remember they have said all along they were trying to increase spare capacity, not necessarily increased production. They have said publically there is no additional demand for their crude and the OPEC monthly numbers seem to justify that belief. By having the spare capacity they can turn up volumes on the new projects as Ghawar and the older fields are gradually depleted.
As time progresses they might decide to investigate other possibilities but to spend that money now and have it lay fallow for years on end is bad business in anyones book.
Seems like business as usual to me.

AirlinePilot

thor · Heavy Crude Joined: Jun 21, 2005 Posts: 453

If $117 oil isn't a signal that something is going on with basic supply and demand then what else is there? Hence Saudi Arabia has reached its peak and that'll be the end of it.

vision-master

joewp

I found the full article here.

I had to laugh. I wanted to find the article just to see what the end to this sentence "from current capacity of".