Saudi's CAN Increase Oil Production... But WILL They?

[MA-Caver]

Everyone has somebody else to blame. Bush is blaming congress for the problem of not allowing drilling to take place in Alaska and off the Pacific,Atlantic and Gulf shores, the Saudi king blames oil prices on speculators, taxes, others are blaming the Chinese and India for increasing demands on oil/gas and the list goes on.

Minister: Saudi Arabia can increase oil production
By SEBASTIAN ABBOT, Associated Press Writer 10 minutes ago
http://news.yahoo.com/s/ap/20080622/ap_on_re_mi_ea/saudi_oil_summit
JIDDAH, Saudi Arabia - Saudi Arabia is willing to produce more oil if customers need it, the kingdom's oil minister said Sunday without citing any specific output increase.
Saudi Arabia, the world's largest oil exporter, has been under intense pressure from the U.S. and other oil consumers to increase its crude output to help slow the soaring price of oil.
The kingdom already announced modest increases and said it would pump 9.7 million barrels a day beginning in July. But those increases have not done much stem the skyrocketing price of oil, which closed near $135 a barrel on Friday.
It was unclear if Oil Minister Ali al-Naimi's remarks Sunday at a high-level oil summit in the port city of Jiddah would quell concerns.
Al-Naimi, who was expected to formally make the announcements in a speech later Sunday, reiterated his government's position that the recent run-up in prices has not been caused by a shortage of supply. But he said he also believes each country must do what it can "to alleviate these difficult conditions."

There (should be) a related video of an audio tape made by Bush at the link, blaming the Democratic congress for not allowing "vast oil field potentials" to be tapped which should meet our needs for the next 100 years.

The older sibling syndrome. Growing up one learns how to assign blame to someone else and it carries over to adulthood. "He did it", "it's their fault", and so on. You'd think being rulers of the most powerful countries on the planet they'd be mature enough to accept the blame where it goes and even MORE mature as to not to FIND/LOOK FOR blame but to FIX the problem whatever it may be.

One wonders if things are gonna get worse before they get better? Probably, until at least people stop worrying about who's fault it is and get down to what really needs to be done.

Thoughts? Discussion?

 

[Bob Hubbard]

Well, if they do, do you really think the 5 cents per gallon difference will matter to you?

Force the speculators to have to pony up the full cost of what they are speculating on...that might drive oil back down to a sane amount again.

 

[tellner]

You'll note that by the Saudi government's own admission they are only doing this so that people will not stop using their product. The idea isn't to reduce prices enough to make a difference. It's to reduce prices just enough so that we don't develop alternatives. Yippee.

 

[Bob Hubbard]

I'm looking at buying an electric bike. Wont get me cross country but it will get me around town, without using oil. As to oil costs and production, my information says theres enough out there now, it's speculation driving the price beyond supply/demand. Adding more won't matter.

 

[Twin Fist]

Well, if they do, do you really think the 5 cents per gallon difference will matter to you?

Force the speculators to have to pony up the full cost of what they are speculating on...that might drive oil back down to a sane amount again.

couldnt agree more

 

[newGuy12]

Its not transportation that is the biggest problem. Its all of the material that is made from petroleum -- plastics, printed circuit boards, etc.

As soon as society "calms down" their driving habits enough so that scooters and so forth can be safely used (meaning the riders won't get killed in accidents -- they will have respect on the road) then we can all ride these scooters around.

Also, its interesting to me that after all of the takeover of Iraq, Iraq will still end up being an OPEC nation. I'm reading a book that's fairly interesting -- Armed Madhouse. When General Garner got off the plane and said something to the effect of, "Well, the Iraqis will have their elections in 90 days." Boy, the feathers flew then -- he was given his walking papers. The important decisions had to be made before they were given their country back! Garner was given his walking papers. Enter Bremer. Yeah, Rumsfeld got on the phone right then! Hahaha! Can't have that!

There were two opposing camps. Big Oil (and the State Dept) vs the neocons (and the pentagon). Big Oil / State Dept won.

If you think that OPEC and Big Oil are antangonstic, you are wrong. They have a mutually beneficial relationship. When the price of oil goes up, oil companies make more profit. The neocons wanted the oil fields to be privatized, circumventing OPEC control. Big oil (using the state dept, which they own) won out. Iraq will be an OPEC nation after all.



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[MA-Caver]

Well, if they do, do you really think the 5 cents per gallon difference will matter to you?

Force the speculators to have to pony up the full cost of what they are speculating on...that might drive oil back down to a sane amount again.

Define a "sane amount". I can personally remember gas being as cheap as .75 a gallon and remember just a couple of years ago it was hovering around $1.50 for a long time sometimes dipping down as cheap as $1.15. Last year I recall thinking that $2.25 was an insane amount, but compared to now it's pretty darn reasonable. :idunno: So we're bent over the fence (and it's barbed wire at that) with our pants around our ankles either way.

 

[Bob Hubbard]

I've seen countless experts say that sane/optimum is around $50/barrel. Whereever that puts us would be fine with me.

 

[Empty Hands]

that might drive oil back down to a sane amount again.

For a while...

 

[MA-Caver]

Somewhat of an update.

Gas prices climb to record $4.10

By Martinne Geller Sun Jun 22, 6:06 PM ET
http://news.yahoo.com/s/nm/20080622/us_nm/gas_lundberg_dc
NEW YORK (Reuters) - Gasoline is costing U.S. drivers a record $4.10 per gallon on average, but pump prices may be at a peak and could start to come down, an industry analyst said on Sunday.
That optimism is linked to a pledge by Saudi Arabia to pump more oil in response to consumer countries' requests, according to Trilby Lundberg, editor of the nationwide Lundberg survey of about 7,000 gas stations.
"I suspect that oil prices have peaked and will flip further because of this news and the physical addition of more oil on the market in July," Lundberg said. "This gives a strong chance that pump prices are peaking now, or may already have done so."
A barrel of oil has doubled in price over the past year, stoking inflation, triggering protests from Asia to Europe, and compounding the financial pain of U.S. consumers already grappling with a sagging housing market, job uncertainty and soaring food costs.
Top officials, policy makers and oil company executives met on Sunday in Jeddah, Saudi Arabia, for emergency talks on how to bring prices down.

 

[Bob Hubbard]

$4.30 or higher in WNY.