[careinke]

$this->bbcode_second_pass_quote('Pops', '
')The tacit agreement is KSA will sell us oil and invest the proceeds in the US so dipping into savings isn't good for us either.

KSA has a huge baby bubble and unemployment to contend with - lots of folks have never had a job as I understand it, they hire foreigners to do their menial work and the natives live on stipends from da King.

I don't know how much the monarchy has changed since 9/11 but they were big time supporters of fundamentalist schools even though they aren't shining examples of fundamental islam themselves. Perhaps they have changed that now that by now and certainly will be changing it more after the Arab Spring.

We're all in this together, surprisingly.

[Pops]

$this->bbcode_second_pass_quote('careinke', 'I') don't believe there is any type of agreement to invest in the US.

[copious.abundance]

LINKY
$this->bbcode_second_pass_quote('', '[')b]Saudi oil output at 30-year high
Daily supply from 12 Opec members rose to 30.26m barrels a day
Bloomberg
September 14, 2011

Riyadh: Saudi Arabia pumped the most oil in 30 years last month as it boosted production along with other members of the Organisation of Petroleum Exporting Countries' (Opec) including Nigeria, Angola, Iraq, Kuwait and the United Arab Emirates, the International Energy Agency said.

Daily supply from Opec's 12 members rose to 30.26 million barrels a day in August from 30.09 million in July, the Paris-based IEA said Tuesday in its monthly oil market report.

Saudi Arabia, the world's largest crude exporter, produced 9.8 million barrels a day last month, compared with a revised 9.7 million for July, the IEA said — the highest in three decades.

"Exports appear largely unchanged from July levels, with the increased volumes dedicated to meet higher demand for direct crude burn," the IEA said.

[Pops]

$this->bbcode_second_pass_quote('OilFinder2', '[')url=http://gulfnews.com/business/oil-gas/saudi-oil-output-at-30-year-high-1.866262]LINKY[/url]
$this->bbcode_second_pass_quote('', '[')b]Saudi oil output at 30-year high
Daily supply from 12 Opec members rose to 30.26m barrels a day
Bloomberg
September 14, 2011

Riyadh: Saudi Arabia pumped the most oil in 30 years last month as it boosted production along with other members of the Organisation of Petroleum Exporting Countries' (Opec) including Nigeria, Angola, Iraq, Kuwait and the United Arab Emirates, the International Energy Agency said.

Daily supply from Opec's 12 members rose to 30.26 million barrels a day in August from 30.09 million in July, the Paris-based IEA said Tuesday in its monthly oil market report.

Saudi Arabia, the world's largest crude exporter, produced 9.8 million barrels a day last month, compared with a revised 9.7 million for July, the IEA said — the highest in three decades.

"Exports appear largely unchanged from July levels, with the increased volumes dedicated to meet higher demand for direct crude burn," the IEA said.

[rockdoc123]

which is precisely why the Saudis have had such a big push for gas exploration including the recent discussion around shale gas potential. With ever increasing demands for local fuel oil they are increasingly limited on what liquids can be exported. Their plan has been to offset a lot of the fuel oil consumption with natural gas, the problem has been that the search for conventional gas has stalled out due to a lack of success in the Rub Al Khali exploration program.

[copious.abundance]

$this->bbcode_second_pass_quote('pstarr', 'H')ow relevant is that? One month? Still hasn't exceeded its 1980 maximum of 9.9 million and never ramped up to 12 million as promised. Most important is that the Kingdom's exports continue to decline.

[copious.abundance]

$this->bbcode_second_pass_quote('Pops', 'R')ead the last sentence of your snip for a simple explanation of the Export Land Model

[dorlomin]

$this->bbcode_second_pass_quote('OilFinder2', 'A')s you know well, oil is a fungible commodity. If they're increasing production in large part just to feed their internal consumption, all that means is it frees up oil from somewhere else to go wherever it needs/wants to go.

[copious.abundance]

$this->bbcode_second_pass_quote('dorlomin', '
')

Its to feed a growing demand. Not a fixed demand.

$this->bbcode_second_pass_quote('Pops', '')$this->bbcode_second_pass_quote('OilFinder2', '[')...]
"Exports appear largely unchanged from July levels, with the increased volumes dedicated to meet higher demand for direct crude burn," the IEA said.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'E')xactly they have peaked, in spite of years and years of denial in the international patch and here.

[copious.abundance]

$this->bbcode_second_pass_quote('pstarr', 'T')he Saudis reworked their remaining ancient inferior fields (Khurais, Shaybah &Nayyim, AFKL, and Haradh) yet production still slipped in the face of record high crude prices..

[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')he Saudis reworked their remaining ancient inferior fields (Khurais, Shaybah &Nayyim, AFKL, and Haradh) yet production still slipped in the face of record high crude prices.. That is the true measure of the supply/demand equation.

[copious.abundance]

$this->bbcode_second_pass_quote('pstarr', 'd')ude. SA is still below their 1980 9.9 mbpd peak.

[rockdoc123]

$this->bbcode_second_pass_quote('', 'Y')ou have apparently not read your westexas over at the Oildrum. He shows that the Kingdom ignored market signals when it failed to raise oil exports in response to record high oil prices
Saudi Arabia failed to meet it's production commitments

[copious.abundance]

Predictably, you didn't even attempt to answer my question: What will be your excuse when they exceed their previous record?

[Pops]

$this->bbcode_second_pass_quote('OilFinder2', 'A')nd incidentally, that "unchanged" level of Saudi exports are from a level that was the highest since 2008:

[copious.abundance]

$this->bbcode_second_pass_quote('Pops', 'T')he more consumption increases in exporting countries the less oil is left for export, what's so hard to understand?

[rockdoc123]

$this->bbcode_second_pass_quote('', 'T')hey promised those megaprojects long before the prices rose, back in 2005. At the time SA knew Ghawar was in decline. We knew here at PO.com the projects would come on line in 2010. Yes, the Saudi's made good, but Ghawar and the other giants continued to decline. And now no more pronouncements from the Kings. They are laying low for good reason. They can not expand production, their population is absorbing more and more exports. And the young poor non-royal saudies are about to lose their cool--Saudi Spring and all that. I'd shut my mouth also.

[seahorse3]

I disagree that the demand is not there. Demand is being killed by higher oil prices hurting the economy. So, it oil were back at 1999 levels of less than $10 a barrel and gas was under $1 gallon US, then the demand and economy would significantly improve. In my opinion, they don't, bc the price of oil has risen dramatically since the glory days of the late 90s economic boom. The price of oil has risen because world demand rose and bc the cost to develop the oil has risen, in part bc the easier to reach cheap oil is gone and the oil we get is more costly to extract. I think the evidence is the world economy can't grow (world GDP) can't grow with $100 plus oil. It maintains, but certainly doesn't grow. I'm not really sure we are maintaining, bc in most measurably sectors, there is still ongoing contraction limited in part, or ameliorated in part, by gov'ts throwing money out there to create inflation in a deflating economy environment. I believe that the "Arab Spring" was a direct result of this plateau oil. Why? One of the motivators was high food prices. They import their food and the cost of food is rising in direct response to higher cost to grow food. Many years ago, the Saudis said they would defend $30 barrel oil and they said this for good reason. High oil doesn't benefit anyone. The problem is, $30 oil is gone (absent a depression). If the world economy is to grow, oil will be much more than $30 barrel.

I wish the old Saudi thread had not been deleted. A lot of time and effort went into that and some other threads, which was all lost along with all the thoughts that went into it.