Iran joins Venezuela, Libya to say $100 oil no harm

[Joanne98]

Source: Reuters

TEHRAN, Jan 16 (Reuters) - OPEC's leading oil price hawk Iran joined Venezuela and Libya on Sunday to say it saw no need for the cartel to consider raising crude supplies to rein in crude prices now near $100 a barrel.

Iranian Oil Minister Massoud Mirkazemi said some members of the Organization of the Petroleum Exporting Countries saw no need for producers to act even if prices went to $120 a barrel. The comments will be of concern for consumer countries worried that rising commodity costs are igniting inflation and jeopardising economic recovery. "None of the OPEC members find $100 concerning or irrational. Some of the OPEC members see no need for an emergency meeting even with prices at $110 or $120," Mirkazemi, OPEC president for 2011, told a news conference.



Read more: http://af.reuters.com/article/energyOilNews/idAFLDE70F0A220110116

[dipsydoodle]

1. They are simply seeking

the best possible prices for a non replaceable resource. Only a reduction in demand could really influence that.

[JohnyCanuck]

2. No More Oil

What you see is what you get. The only thing an OPEC meeting would produce is yet another tortured explanation about why OPEC isn't increasing its production quotas, explanations that usually range from the hilarious to the pathetic in their effort to avoid saying the obvious: there's no more oil to pump, so quotas are going to stay where they are no matter how much anyone wishes otherwise.

http://motherjones.com/kevin-drum/2011/01/no-more-oil

[dixiegrrrrl]

3. Good point, nice source.

[social_critic]

6. There's more oil to pump in Saudi Arabia and Kuwait

Both Saudi Arabia and Kuwait have excess capacity, but they seem reluctant to use it at this time, because the margin is thin.

Venezuela doesn't have more oil to pump, it's in steady decline, and government policies preclude new developments of significant size. I think Iran is in a similar position.

New oil sources are being put on line in Equatorial Guinea, Brazil, and other nations, but they're not enough to offset the existing oil field decline as well as increasing consumption. Therefore we should see a surge in biofuels in the next few years, which should drive up the price of food. Farmers are in for a good time, as are oil producers.

[DCKit]

9. The margin on oil at $100/barrel seems just a tad fatter than at $20-$40/barrel.

Just sayin'.

[social_critic]

10. Sure is, but the question is whether they use $80 or $100

Saudi Arabia already stated they thought $80 a barrel was a good point. But they are still waiting to see what happens before they open up and put more oil on the market. I don't think we'll ever see $40 dollar oil again, unless there's a huge pandemic.

I suspect the Saudis will wait to see if prices do go above $100 for a couple of weeks, call on OPEC to open up (only a few have spare capacity anyway), and then open up by cheating if they have to. If they SAY they will open up, the price will go down. But we do have a problem because the world economy is growing so much - the US needs to cut back on energy use right now, and there needs to be a lot tougher economy standards. And you guys had better sing Obama's praises if gasoline gets taxed even more. Right now the US needs to conserve fuel, put less CO2 in the air, and start behaving responsibly.

[jwirr]

12. Maybe so but there are China and India demanding more every day. nt

[daleo]

17. All the more reason to transition to other sources

Which is a tremendous challenge, but tremendous challenges have been met in the past, when the will was there.

[Bette Noir]

4. Why would oil producers want to reduce the price?

It's the Free Market, Baby.

[Igel]

15. The free market isn't free just in one dimension.

There are many degrees of freedom, so to speak, but it is still a market.

High oil prices make alternative energy sources and energy conservative look very attractive--and once in place, they may continue even when oil prices deline. Some of the 'alternative energy' is, paradoxically, oil reserves that are unattractive at $60 or $80/barrel but profitable at $100 or $110.

High oil prices make the suppliers of that oil look unattractive, and that's important for geo-political reasons. Sometimes even non-Western countries stop to ponder, however briefly, "Why do they hate us?" Moreover, while high oil prices can hurt political enemies--Iran, Libya, Venezuela wouldn't especially mind if they still make enough money and it destroys most Western economies, in fact they might even think it a good idea--Sa'udiyya wouldn't be pleased at the political leverage it gives Iran.

[fascisthunter]

5. wow... interesting

[Skink]

7. People are starting to drive those electric cars.

those of us that can not afford electric cars are going to have to make up for the reduction in demand for oil.

[Knight Hawk]

8. Doing my part

I keep my fuel consumption to a very low level.I will believe the people in this country are interested in fuel conservtion when they force their governments to reduce the speed limit on the interstate to at least 60 and Strictly enforce it with VERY large fines etc.What we Americans have let the automobile to do to our society is a major crime to say the least.

[Skink]

16. sorry I was thinking about the future when batterry technology will be better.

I got to go now a get the bus.


this was actually a response to the second response to my post not this one.:toast:

[social_critic]

11. Electric cars don't mean much

Electric cars are not a real solution. They cost a ton of money, and the electricity has to be generated somehow - using an electric grid which hardly works as it is anyway.

Tell you what, I propose you go research the topic, always keeping in mind electric cars need to use batteries and these have to be charged. Work out the cost, how much lithium is available to make the batteries, and how the electricity gets generated. Then work out an alternative such as smaller vehicles, more public transport, hybrids, and high efficiency diesels. You'll see the alternatives make a lot more sense for a quick fix. Next time you buy a car, please buy something small, with a four cylinder engine, a five or six speed manual transmission, AND keep your tires inflated properly.

Better yet, try to convince your local government to improve public transportation. Some of them may have the sense to do something about it.

[jwirr]

13. Good conservation is the one thing everyone can do. We never should

have stopped when Carter suggested these measures.

[social_critic]

14. No kidding - Carter was right 110 %

Conservation is such a no-brainer, it's amazing to see so many people advocate electric vehicles and other non-sense when it's so much easier and practical to use less. I see people who are religious about sorting their garbage for recycling and donate tons of money to the Sierra club living in 3000 square foot homes they don't need, and driving huge SUV's, and I feel like vomiting.

[mbperrin]

18. "A quick fix"?

You're going to fix a generational problem with a "quick fix"? (Your words.)

Electricity is going to come from the wind, and already is, increasing yearly. Texas, the HOME of oil-type businesses, now produces more wind energy than any other state, and it will only increase now that more transmission lines are being built. Last year, there were two months where ERCOT reported that wind accounted for 25% of the electricity in the state, NOW.

Never going to convince me that the wind costs more as fuel than natural gas or coal. Free versus whatever.

Batteries are also going to improve and change, but even if not, we're swimming in lithium:

http://www.lithiumindustry.com/89/lithium-global-reserves-overview-2009/

World total 18,000 metric tonnes of production 2009 9,900,000 metric tonnes in reserves worldwide

That's 500 YEARS of lithium if no more is found anywhere.

So kick that oil habit you've got, declare independence from the Middle Eatern cartel that we spend hundreds of billions of dollars a year defending dictators and despots of all stripes, save American live, promote world peace, improve the environment and drive better cars - faster, more torque, fewer repairs, no fluids, the whole ball of wax.