Saudis Urge 2 Percent Rise In Oil Output

[chlamor]

Posted on Mon, Mar. 14, 2005


Saudi urges 2 percent rise in oil output

GEORGE JAHN

Associated Press

ISFAHAN, Iran - Saudi Arabia's advocacy of a 2 percent increase to OPEC's output target failed to calm oil markets Monday, though it appeared to reflect growing concern within the cartel about the effect high prices could have on the global economy.

Even if the Organization of Petroleum Exporting Countries raised its daily production ceiling by 500,000 barrels, the impact on actual supplies would be muted because member nations - eager to maximize profits with crude futures trading near $55 a barrel - are already overshooting the existing quota by about 700,000 barrels.

Analysts said the proposal was not merely symbolic, however, and it signaled Saudi willingness to supply the market with additional barrels, if necessary, to help bring down prices.

"Most members don't have additional (production) capacity, but the Saudis do," said Tom Bentz, a broker at BNP Paribas Commodity Futures in New York. "It appears they're trying to cool prices down a bit."

http://www.kentucky.com/mld/kentucky/business/11132837.htm

[htuttle]

1. This is called 'jawboning the price down' isn't it?

They've got no excess capacity in reality.

When they tried to expand output over the last couple of years, all they have extra is sour crude that nobody wants...yet.

They are hoping that this statement alone will have an effect on the futures market. I think they shot that wad long ago, however.

[NYdemocrat089]

2. Instead of raising output

shouldn't we be working on alternate fuels? I'm gald oil prices will be cheaper but it seems to me that this is just going to add to the denial that oil prices are going up - and staying there.

[bahrbearian]

3. Bush to Bandar

"give me more oil now, or I'll bring democracy to you faster that you can say pre-emptive strike"

[NickB79]

4. That's right, suck it out faster

Saudi Arabia is already pumping at almost 100% capacity. Any increases in oil production will come at a great expense to their oil wells; you suck the oil out too fast and the oil wells become damaged to the point they go into early decline. Mexico's major oil well, Cantarell, went into decline last year, almost 3 yrs early. Saudia Arabia CANNOT increase production as much as they claim without ruining their oil wells in the process and bringing Peak Oil here even faster.

[cliss]

10. I've read the same thing.

Saudi Arabia is urging a 5% increase in output. I'd like to see them try - for the very reasons in your post above.

It ain't gonna happen.

Earth to Bush: Your PNAC dreams of world hegemony are about to get a stick stuck in the spokes.

[bemildred]

5. I was thinking today ..

I read the US military uses billions of gallons!
If we shut the US military down, I'll bet that would mean
lower gas prices for all.

http://www.rmi.org/sitepages/pid939.php

[chlamor]

6. Abrams Tank gets 4 gallons/mile

Jet Fighter uses more fuel in one hour than US motorist uses in 2 years. US Navy uses 16% of world's diesel fuel.

[bemildred]

7. Kind of helps you understand why the Pentagon is anxious about oil. nt

[chlamor]

9. US Military is using 15 million gals of fuel per day in Iraq

That amounts to 5.475 billion gals/yr in Iraq alone if my Math is right (and it often isn't). This would be consistent with the 7.5 bill gals/yr that the US military uses overall which is the figure I've come across on a few searches.

[cliss]

11. I've read that the US Navy is the biggest user of oil.

I can't be sure of the figure, but it was in the #1 spot as far as oil usage.

[chlamor]

16. You Are Correct

The US Navy uses 16% of the world's diesel fuel/year. I think 150,000 gallons/day is the amount of fuel an aircraft carrier uses.

Go to: www.warresisters.org

Look to the left for publications and click leaflets and brochures. Look at handout titled
SUPERPOWER-SUPERPOLLUTER. You'll see some info there. Download hand out leaflets?

[NickB79]

12. Per day!?!

The entire US uses ~18 million barrels per day! By being in Iraq, we've effectively DOUBLED the amount of oil we use per year?!?! Holy crap, no wonder oil prices have gone through the roof! We've used more oil to conquer Iraq than we'll ever get out of the Iraqi wells.

[bemildred]

13. Barrels are bigger than gallons.

It's not quite that bad.

[NickB79]

18. Oops, my bad

Guess I didn't read quite closely enough :-)

[chlamor]

14. Gallons of Fuel not barrels of oil

I don't know how many gallons of gas you get from one barrel of oil. And of course the fuel used for jet fighters is not your average juice so it might be interesting to find these figures and post them around town. Whatever the barrels of oil /day numbers are it is certainly mind boggling and not helping the ozone layer or our overheated climate.

[bahrbearian]

8. My 1979 F-350 with a 460 get's 9 miles to a gallon.

I shut it down 4 yrs ago, I make the 5 mile round trip to the dump/ recycle station once a month, 30+ mpg or I don't go,

[leesa]

15. No can do, buddy boy! It should be interesting to see what happens

to SA now that peak oil is here and they can't honor their part of their deal with the devil to keep OPEC prices down in exchange for a blind eye from the US towards their torture machine. Also, they had bought protection from the US...what now?

[Ilsa]

17. Let's see. Our refining capacity is at peak, isn't it?

So that oil can't come to us because it would just bottleneck, right? So if OPEC is going to increase output, is that oil going to China, India, and other newer Asian users? It will deplete that much faster. I guess the price would come down, slightly.

I'm relieved the American capital markets didn't go ballistic over this news.

Someone please correct me if there are a bunch of new refineries coming online.