[dorlomin]

As I understand it fields can be run at a higher caqpacity than is optimal for maximum recovery. They may have an emergency spare capacity that can be turned on.

$this->bbcode_second_pass_quote('', 'I')f the Saudis had the oil, they'd probably be flooding the market right now to bring Tehran to its knees is .

[Tanada]

$this->bbcode_second_pass_quote('dorlomin', 'A')s I understand it fields can be run at a higher caqpacity than is optimal for maximum recovery. They may have an emergency spare capacity that can be turned on.

$this->bbcode_second_pass_quote('', 'I')f the Saudis had the oil, they'd probably be flooding the market right now to bring Tehran to its knees is .

[rockdoc123]

the 12.5 MM spare capacity is not something all that new. SA spoke about this more than a year ago when they finished commissioning of the last of the megaprojects.
A number of years ago I posted a plot on the Saudi production thread (now disappeared for some reason) that showed how adding up the capacity from all of the megaprojects ended up with 12.5 MMbbls. This is oil that can be accessed now by simply turning on the taps, all of the relevant MRC wells, processing and pipeline facilities in place.

[ralfy]

Reminds me of the Morgan Stanley forecast reported here:

"If You Think This Oil Spike Is Temporary, Check Out This Chart"

http://articles.businessinsider.com/201 ... ity-saudis

[Graeme]

Iran warns of consequences if Arabs back oil sanctions

$this->bbcode_second_pass_quote('', 'I')ran warned Gulf Arab neighbors on Sunday they would suffer consequences if they raised oil output to replace Iranian crude facing an international ban.

In signs of Tehran's deepening isolation over its refusal to halt nuclear activity that could yield atomic bombs, China's premier was in Saudi Arabia probing for greater access to its huge oil and gas reserves and Britain voiced confidence a once hesitant European Union would soon ban oil imports from Iran.

Major importers of Iranian oil were long loath to embargo the lifeblood of Iran's economy because of fears this would send oil prices rocketing at a time - amidst debt and deficit crises and high unemployment - when they could least afford it.

But strong momentum for oil sanctions has been created by a U.N. watchdog report saying Iran appeared to have worked on designing an atom bomb.

A new U.S. law signed by President Barack Obama on New Year's Eve would freeze out of the U.S. financial system any institution dealing with Iran's central bank - which processes its oil revenues.

If fully applied, the law would make it impossible for most countries to buy Iranian oil. Washington is offering waivers to countries to let them keep buying Iranian oil for now, but demanding they gradually cut their imports back.

Leaders from some of the Asian countries that buy the most Iranian oil have begun touring the Middle East to secure alternative supply lines from Arab states. European buyers suggest they will also lean more heavily on Arab oil producers should an EU ban come into effect.

[Graeme]

Europe set to announce ban on Iranian oil, William Hague says

$this->bbcode_second_pass_quote('', 'M')r Hague was speaking as part of what appeared to be a concerted ramping up of pressure on Iran from the EU. His German and French counterparts sent the same message in separate interviews, insisting that the Iranian regime was continuing its work on nuclear weapons and additionally threatening to block dealings with its Central Bank.

He repeated long-standing government policy that military action was being neither ruled in or out, but said: "This is an increasingly dangerous situation that Iran is developing a military nuclear programme.

"Our sanctions are part of getting Iran to change course and to enter negotiations."

Israel, the United States, the EU and Iran's Arab neighbours in the Gulf, mostly hostile, are engaged in a complex game of threat and counter-threat with Iran in the hope of persuading it to back down from its nuclear programme without having to use force, which even its proponents admit could have disastrous consequences.

Saudi Arabia's oil production currently stands at 10 million barrels per day, against a potential capacity estimated at 12.5 million, though whether it could in practice achieve that has been questioned.

[Serial_Worrier]

Waiting for Ghawar's collapse any month now. When that happens, TSHTF big time.

[vtsnowedin]

$this->bbcode_second_pass_quote('Serial_Worrier', 'W')aiting for Ghawar's collapse any month now. When that happens, TSHTF big time.

[Serial_Worrier]

$this->bbcode_second_pass_quote('vtsnowedin', '')$this->bbcode_second_pass_quote('Serial_Worrier', 'W')aiting for Ghawar's collapse any month now. When that happens, TSHTF big time.

[vtsnowedin]

$this->bbcode_second_pass_quote('Serial_Worrier', '')$this->bbcode_second_pass_quote('vtsnowedin', '')$this->bbcode_second_pass_quote('Serial_Worrier', 'W')aiting for Ghawar's collapse any month now. When that happens, TSHTF big time.

[Serial_Worrier]

$this->bbcode_second_pass_quote('vtsnowedin', 'I') was seeking a mental picture there not precision numbers. Any shortfall or inability to fill orders in a timely way will create the panic you allude to. Do you have any thoughts as to the rest of my question.

[mmasters]

$this->bbcode_second_pass_quote('Serial_Worrier', '')$this->bbcode_second_pass_quote('vtsnowedin', 'I') was seeking a mental picture there not precision numbers. Any shortfall or inability to fill orders in a timely way will create the panic you allude to. Do you have any thoughts as to the rest of my question.

[vtsnowedin]

$this->bbcode_second_pass_quote('Serial_Worrier', '')$this->bbcode_second_pass_quote('vtsnowedin', 'I') was seeking a mental picture there not precision numbers. Any shortfall or inability to fill orders in a timely way will create the panic you allude to. Do you have any thoughts as to the rest of my question.

[vtsnowedin]

$this->bbcode_second_pass_quote('mmasters', '[')I don't think there's any doubt it's going to pop bubbles but this is doomerish armmegeddon stuff. We still have a lot of oil left, the middle class can be obliterated some more and if the past few years have been any evidence the system can be patched up, modified and the status quo maintained to an extent.

[Serial_Worrier]

I didn't even get to the part where the entire supply chain breaks down and there's a run on supermarket food. Within 2 weeks, everyone will have exhausted their food reserve. That's when starvation begins. Imagine entire cities, suburbs with bloated rotting corpses via starvation. Not a pretty sight!

[ralfy]

Indeed, given a JIT system in various economies.

[Graeme]

Obama Administration: U.S. Oil Production Highest Since 2003

$this->bbcode_second_pass_quote('', 'A')ccording to a news release posted at the U.S. Department of Energy's website and that of the White House, domestic energy production is the highest it has been since 2003 and the Obama Administration has been active in other energy policies. Here are the details by the numbers.

90,000: More barrels each day of crude oil were produced in the U.S. in 2011 than in 2010.

7.4: Percent that natural gas production grew in the U.S. in 2011 -- the largest year-over-year volumetric increase ever reported.

45: Percent net oil imports in 2011 was the lowest percentage of oil imports to the U.S. since 1995.

338 million: Dollars in total bids from the December oil and gas lease sale held in the Gulf of Mexico. The sale was the first held since the oil spill.

54.5: Miles per gallon fuel standards will be required for model 2017 to 2025 passenger vehicles, the Obama administration announced in January. The administration expects that this increased vehicle performance will save Americans $1.7 trillion over the life of the program.

2.2 million: Fewer barrels of oil a day will be consumed in the U.S. by 2025 due to the fuel economy standards, the administration says, saving 12 billion barrels total over the life of the program.

$90 billion: The Recovery Act invested in clean energy.

40: Clean energy projects have received funding by the Department of Energy's Loan Guarantee Program.

20: Percent increase in Bureau of Land Management onshore oil and gas lease sales revenue in 2011 over 2010, according to a news release from the U.S. Department of the Interior.

256 million: Dollars from the 32 onshore oil and gas lease sales that took place in 2011, offering 1,755 parcels of land over 4.4 million acres. Of those offerings, the DOI reported, 1,296 parcels were sold.

36: Percent BLM oil and gas leases in 2011 were protested -- a decrease from the 47 percent that were protested in 2009.

32: Additional oil and gas lease sales on public lands will be held in 2012, the DOI reported, offering "thousands of parcels in California, Colorado, the Eastern States, Montana, New Mexico, Nevada, Utah and Wyoming."

[babystrangeloop]

$this->bbcode_second_pass_quote('', '[')b]Iraq Opens Offshore Oil Facility to Boost Export Capacity
By Kadhim Ajrash and Nayla Razzouk / Bloomberg / February 12, 2012

Iraq, seeking to maximize crude oil exports, opened the first of four planned offshore mooring facilities in the Persian Gulf and intends by March to add 200,000 barrels a day to its capacity for loading tankers there.

The new single-point mooring unit, extending into the sea from the southern oil terminal of Fao, has a potential export capacity of 850,000 barrels a day, Falah al-Amri, chairman of the State Oil Marketing Organization, said in an interview. ...

[sjn]

Adding export capacity in the Persian Gulf isn't the same thing as increasing production capacity. Most likely, this new facility will allow Iraq to redirect oil which is currently exported through pipelines overland through its neighbours allowing it direct access to the world market.

[babystrangeloop]

If it comes true it will show up on this chart:
http://www.opec.org/opec_web/en/data_graphs/40.htm