[astalavista_b]

I checked the EROEI thing and it makes sense since producing low cost middle east fields are no longer enough for the world. That's why oil companies are trying to explore new drilling techniques especially for the oil sands, shale plays and deep horizontal offshore drilling. As long as oil barrel price is above $100( if a not a big energy revolution occurs this is the case most people in the industry approves), the unconventional oil fields become the conventional. However it is already mentioned that it quite hard to tell exact figures for these reserves.

Canada is trying to maximize its production, I read some resources that Canada can replace Saudi Arabia at 2030. Though these estimations are hard to prove. Canadians also think that they will triple oil production since then.

"New projects are being added every year and production is expected to increase from 1.31 million barrels per day in 2008 to 3 million barrels per day in 2018, keeping pace with demand and providing a sound economic basis for the future."
http://www.energy.gov.ab.ca/OurBusiness/oilsands.asp

"Using currently available technology and under the current economic conditions, there are 170.4 billion barrels of recoverable oil in the oil sands deposits of Northern Alberta."
http://www.energy.gov.ab.ca/OilSands/1715.asp

[AirlinePilot]

http://www.platts.com/RSSFeedDetailedNe ... il/8035709

"The International Energy Agency Thursday announced a release of 60 million barrels of oil held in emergency stockpiles by its member countries in response to the disruption of oil supplies from Libya. IEA members have agreed to release 2 million b/d of oil for a period of 30 days, the IEA said in a statement, in what will only be the third stock release in the agency's history."

60 mb over next two months, 30 from the US SPR apparently. I thought the markets were well supplied?

This is DOUBLE any previous release amid what apparently has NOT been a supply emergency according to the very agency which engineered this.

Curious.

Desperation move? Had not expected to see this sort of stuff yet.

[Cid_Yama]

It's called giving the speculators a bloody nose.

[gnm]

Odd very odd... Trying to drive down prices ahead of popular travel holiday? <shrug>

-G

[peripato]

IEA makes 60 million barrels of oil available to market to offset Libyan disruption

The IEA are going to ride to the rescue of oil production, which has swooned markedly since Libya went offline, by releasing 60 million barrels, principally from the US SPR, over the following month to help ease prices! (Give me a break...)

Oil has dutifully done a swan dive since the announcement, which is all part of Ben's wider plan of course to cause a strong correction in both commodities and equities, in preparation for the eventual justification of QE3. Oh, and he gets to help out the Eurozone as well, which has been having a few problems of its own lately, what with those PIIGS and all.

$this->bbcode_second_pass_quote('', '�')��Today, for the third time in the history of the International Energy Agency, our member countries have decided to release stocks.” Mr. Tanaka (Executive Director, IEA) said. “I expect this action will contribute to well-supplied markets and to ensuring a soft landing for the world economy.”

[AirlinePilot]

The reasons are apparent, but dont make sense other than short term political expediency. Thats a bullsh1t reason for tapping the SPR, here or anywhere.

What happened to everybody being "well supplied"

[peripato]

$this->bbcode_second_pass_quote('AirlinePilot', 'T')he reasons are apparent, but dont make sense other than short term political expediency. Thats a bullsh1t reason for tapping the SPR, here or anywhere.

What happened to everybody being "well supplied"

[Hughj]

The beauty of being an incumbent president. Release the SPR into a falling oil market
and the voters think you are really doing something.

[peripato]

$this->bbcode_second_pass_quote('Hughj', 'T')he beauty of being an incumbent president. Release the SPR into a falling oil market
and the voters think you are really doing something.

[basil_hayden]

Road Trip!

[ian807]

$this->bbcode_second_pass_quote('peripato', '[')b]IEA makes 60 million barrels of oil available to market to offset Libyan disruption

[Hughj]

http://fossil.energy.gov/programs/reser ... leases.pdf


Add to bottom of list .....2011 - Re-Elect President Obama

[Hughj]

You guys are amusing. Yesterday, you argue that the oil markets are delicately balanced
on the head of a pin.......supply carefully matched to demand, straining against Peak Oil
Theory. Today, 60 mmb dropped on the market and it is no big deal! I think you guys
should put your money where you mouth is and buy some Sept oil contracts.

Hugh

[Lore]

$this->bbcode_second_pass_quote('peripato', 'O')f course the question remains, where is all that Saudi spare capacity, that the IEA has to step into the breach?

I guess desperate times call for desperate measures. The global elite must be quacking in their boots...

[evilgenius]

Sounds like a bridge to an extra ten or fifteen cents a gallon off at the pump to me. You righties can call that a bribe if you want to. I call it putting stimulus into the economy in a much more direct fashion than the crippled banking system can at the present time.

[Pops]

$this->bbcode_second_pass_quote('evilgenius', 'S')ounds like a bridge to an extra ten or fifteen cents a gallon off at the pump to me. You righties can call that a bribe if you want to. I call it putting stimulus into the economy in a much more direct fashion than the crippled banking system can at the present time.

[seahorse3]

I don't think this is a political move, bc the Obama election isn't this year. My gut reaction is this is more unexpected blowback from that ill conceived Libyan invasion. This is another move to save the Europeans from this ill fated move in Libya, which was conceived in Europe for Europeans, who goaded the US military under the auspices of "Nato" to lead it military, fund it when Europe is broke, and now tapping our SPR for them.

The news release said "they" would be releasing 2mbpd from strategic stockpiles to make up for the loss of Libyan production. It is true that pre-invasion Libya was producing 2mpbd which almost all went to Europe. This means two things: confirms SA can't increase production and shows how tight the oil market is with the loss of the Libyan crude. What a misinformed adventure Libya proved to be for the Europeans who goaded the US into leading and funding it for them (Obama is now paying a political price for this with Congress threatening to hold him accountable for violated the War Powers Act). This ill conceived attack on Libya caused the world to lose that 2mpd of much needed production, raised oil prices, and now forces the West to tap our oil reserves. The problem is, Libyan crude will be offline for at least a year, so this release of 60mbpd at 2mbpd is only 30 days of oil. What then Sherlock?

[Lore]

$this->bbcode_second_pass_quote('seahorse3', 'T')his ill conceived attack on Libya caused the world to lose that 2mpd of much needed production, raised oil prices, and now forces the West to tap our oil reserves. The problem is, Libyan crude will be offline for at least a year, so this release of 60mbpd at 2mbpd is only 30 days of oil. What then Sherlock?

[Hughj]

Drill Baby Drill.

[ColossalContrarian]

The timing of the SPR release is mind boggling, there isn't a shortage but instead a glut and now when the SPR is really needed it will already be used up. Goldman Sachs can still keep the price high too, so this entire charade is impotent!

The unintended consequences are even worse because there's no need for everyone to ramp up supply since demand is so low!