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NoWorries
Tar Sands
Joined: Jun 05, 2008
Posts: 79
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 Posted: Tue Jun 10, 2008 8:36 am Post subject: Why would Saudi hike output, if supply is "not an issue |
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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. |
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Serial_Worrier
Heavy Crude
Joined: Jun 05, 2008
Posts: 277
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| Posted: Tue Jun 10, 2008 9:45 am Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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| Well this is more proof that a 6 billion die-off is imminent. |
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BigTex
Moderator
Joined: Aug 03, 2006
Posts: 4331
Location: Graceland
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| Posted: Tue Jun 10, 2008 11:31 am Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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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: 1955
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| Posted: Tue Jun 10, 2008 1:14 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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| 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. |
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criticalmass
Tar Sands
Joined: Sep 20, 2007
Posts: 93
Location: Colorado
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| Posted: Tue Jun 10, 2008 3:03 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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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. |
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MacG
Light Sweet Crude
Joined: Jun 04, 2005
Posts: 1178
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| Posted: Tue Jun 10, 2008 3:42 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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| criticalmass wrote: | | Nearly 42 years left? So we're not running out but there's admittedly only 42 years left!? |
He probably meant "42 years at current extraction rate". Since I expect declining extraction rates it might actually last a lot longer.... |
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Dezakin
Light Sweet Crude
Joined: Feb 09, 2005
Posts: 1373
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| Posted: Tue Jun 10, 2008 5:14 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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| seahorse2 wrote: | | 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. |
Say they believe what they're saying, the Saudis could be worried about short term price speculation bringing online more supply which would sink the price and market share in the future. |
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Micki
Light Sweet Crude
Joined: Dec 07, 2005
Posts: 1983
Location: Australia
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| Posted: Tue Jun 10, 2008 6:09 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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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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It's not a bailout, it's a buy-in" - Nancy Pelosi |
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Dreamtwister
Fission
Joined: Feb 06, 2006
Posts: 2267
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| Posted: Tue Jun 10, 2008 6:24 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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| BigTex wrote: | | flurry of worry fury |
That's pretty good. 
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The whole of human history is a refutation by experiment of the concept of "moral world order". - Friedrich Nietzsche |
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OilFinder2
Light Sweet Crude
Joined: Mar 26, 2008
Posts: 1366
Location: Seattle
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| Posted: Tue Jun 10, 2008 6:35 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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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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DantesPeak
Expert
Joined: Oct 23, 2004
Posts: 5928
Location: New Jersey
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| Posted: Tue Jun 10, 2008 6:44 pm Post subject: Re: Why would Saudi hike output, if supply is "not an i |
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| Dreamtwister wrote: | | BigTex wrote: | | flurry of worry fury |
That's pretty good. |
Yeah, I liked that.
No offense to anyone, but shouldn't the three seperate threads on the Saudi statement today be merged? I see some good points that could be shared.
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It's already over, now it's just a matter of adjusting. |
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