[Pops]

$this->bbcode_second_pass_quote('', 'S')audi Arabia's state energy company said on Monday that its dominant role in world oil supply had been altered by large new reserves in North America, sapping the urgency to develop the kingdom's own reserves.

The speech by Saudi Aramco's chief executive was the first from the globe's top oil exporter to acknowledge that unconventional oil was set to shift the energy balance of power and cut U.S. dependence on Middle East crude.

[Cog]

I'm having a great deal of difficulty believing the Saudi's about why they aren't developing the rest of their oil.

[dissident]

This is the standard line from the wahabbi kingdom to cover its own lack of discovery and declining reserves. At the same time they talk about a production capacity of 12 million barrels per day, which we will never, ever see in practice.

[dorlomin]

$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('', 'S')audi Arabia's state energy company said on Monday that its dominant role in world oil supply had been altered by large new reserves in North America, sapping the urgency to develop the kingdom's own reserves.

[seahorse3]

I'm in the camp that high oil prices hurt the world economy. SA used to say that too and used to claim they would defend $30 barrel oil. That era has gone and passed apparently. All that to say if there is any hope for the world to grow its economy and put people back to work, avoid a depression, the root of the solution is to produce more oil and produce it cheap - back in the late 90s we were growing like ganbusters at under $10 barrel right? So, cheap oil means economic growth. So, I don't buy the SA argument either that more oil isn't needed bc the North Americans can produce the more expensive stuff and, it hasn't even been enough to increase world production, just maintain a plateau. We need to increase oil production significantly and reduce the cost of doing so.

[careinke]

The Saudi royalty are masters of deception. Their stories emphasize getting ahead through cleverness (Aladan, etc.). Western stories are based on getting ahead by hard work and being clever is frowned upon. You need to look at Saudi statements through that lens.

Their announcement was designed to avoid panic, keep up the BAU facade, and of course keep the current leaders in power.

[Pops]

I don't think this is surprising, they said last year they weren't ever going to export more than 10 or 12 Mbd (I can't remember exactly) because they were "saving it it for future generations." Whatever additional they developed would be for internal use.

Pretty good plan.

They never did reach 10Mbd this year even after the Libya cutoff and dropped back to 9.5 after a month or two.

A good review from Staniford recently.

[Arthur75]

$this->bbcode_second_pass_quote('dissident', 'T')his is the standard line from the wahabbi kingdom to cover its own lack of discovery and declining reserves. At the same time they talk about a production capacity of 12 million barrels per day, which we will never, ever see in practice.

[basil_hayden]

Arabian Light Sweet replaced by Dakota Light Sweet, not to mention much of Arabian is heavy, sour and thousands of miles away.

don't worry - we'll be back for it in about 20 years.

[dorlomin]

$this->bbcode_second_pass_quote('', 'O')PEC expects global output of non-conventional oil to rise 3.4 million bpd by 2015, still dominated by oil sands, to 5.8 million bpd by 2025 and to 8.4 million bpd by 2035 when tight oil would be playing a much bigger role.

[dissident]

$this->bbcode_second_pass_quote('Arthur75', '')$this->bbcode_second_pass_quote('dissident', 'T')his is the standard line from the wahabbi kingdom to cover its own lack of discovery and declining reserves. At the same time they talk about a production capacity of 12 million barrels per day, which we will never, ever see in practice.

[Pops]

I'd say they are only "routine" to Peak Geeks like us. lol

[kildred590]

I don't get it. Unconventional oil is more expensive so it doesn't affect the rate of conventional extraction.

KSA needs to expand production to cover its rising debts and the increasing local and regional demand. The oil supply situation itself is irrelevant, except that it may lower price. But when the competition is more expensive.....

[Pops]

$this->bbcode_second_pass_quote('kildred590', 'I') don't get it. Unconventional oil is more expensive so it doesn't affect the rate of conventional extraction.

KSA needs to expand production to cover its rising debts and the increasing local and regional demand. The oil supply situation itself is irrelevant, except that it may lower price. But when the competition is more expensive.....

[papa moose]

$this->bbcode_second_pass_quote('kildred590', 'I') don't get it. Unconventional oil is more expensive so it doesn't affect the rate of conventional extraction.

KSA needs to expand production to cover its rising debts and the increasing local and regional demand. The oil supply situation itself is irrelevant, except that it may lower price. But when the competition is more expensive.....

[vtsnowedin]

$this->bbcode_second_pass_quote('kildred590', 'I') don't get it. Unconventional oil is more expensive so it doesn't affect the rate of conventional extraction.

KSA needs to expand production to cover its rising debts and the increasing local and regional demand. The oil supply situation itself is irrelevant, except that it may lower price. But when the competition is more expensive.....

[rockdoc123]

$this->bbcode_second_pass_quote('', 'K')SA still has oil it can produce at maybe $40bbl (who knows?) so when it sells at the going price (the same as uncon-oil's $90bbl) it makes out like a bandit. There is no economic benefit in increasing production thus lowering the going price and their margin.

They may have once had a strategic interest to keep prices down but not so much any more it seems, if they in fact could in any event.

[Pops]

Moved the history discussion to here
oil-history-1970s-t63656.html

Moved the trash to the trash.

[Serial_Worrier]

Does it mean Ghawar is near collapse?