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Tipping Point - IEA replaces SA as world swing producer
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Tipping Point - IEA replaces SA as world swing producer
by seahorse3 » Sun 26 Jun 2011, 13:31:21
A very important tipping point was reached last week when the IEA decided to release 60mb of oil to replace Libyan oil production taken off of the market due to their civil war. After OPEC and in particular SA refused to increase production to make up for the loss of the Libyan oil, the IEA stepped in. This was an important shift. It effectively means the IEA is now the world's swing oil producer and will have to intervene to calm oil price moves, not just pump oil in case of strategic emergencies, which was the original purpose of the IEA reserves of oil. After a decade of rising oil prices, rising more than 10 fold sense 1999, and after repeated pledges by SA to increase production to stabilize world oil prices, it was apparent they can't and couldn't. SA produces less oil today in 2011 than it did in 2005. SA is no longer the swing producer. No one believes that anymore. That role has now shifted to the IEA What that means from here on out, who knows. But, it is an important tipping point politically, economically, and in the debate about PO.
Last edited by seahorse3 on Sun 26 Jun 2011, 14:25:34, edited 1 time in total.
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Re: Tipping Point - IAEA replaces SA as world swing producer
by EnergyUnlimited » Sun 26 Jun 2011, 14:08:42
$this->bbcode_second_pass_quote('pstarr', '
')The truth is apparent that there is no swing producer anymore Just decline.
')The truth is apparent that there is no swing producer anymore Just decline.
At least we have some good news...
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Re: Tipping Point - IEA replaces SA as world swing producer
by John_A » Sun 26 Jun 2011, 18:46:16
$this->bbcode_second_pass_quote('seahorse3', 'A') very important tipping point was reached last week when the IEA decided to release 60mb of oil to replace Libyan oil production taken off of the market due to their civil war. After OPEC and in particular SA refused to increase production to make up for the loss of the Libyan oil, the IEA stepped in. This was an important shift. It effectively means the IEA is now the world's swing oil producer and will have to intervene to calm oil price moves, not just pump oil in case of strategic emergencies, which was the original purpose of the IEA reserves of oil.
IEA doesn't produce anything, so they certainly can't be a swing producer. All they can do is shuffle inventories, and backhand the occasional speculator, who gets REAL pissed when bigger players get involved and screwup their long/short positions.
$this->bbcode_second_pass_quote('seahorse3', '
')After a decade of rising oil prices, rising more than 10 fold sense 1999, and after repeated pledges by SA to increase production to stabilize world oil prices, it was apparent they can't and couldn't. SA produces less oil today in 2011 than it did in 2005. SA is no longer the swing producer. No one believes that anymore. That role has now shifted to the IEA What that means from here on out, who knows. But, it is an important tipping point politically, economically, and in the debate about PO.
PO isn't a debate, it is one of those things which showed up one afternoon, pissed in the punch bowl, and now we are dealing with it. The Saudi's aren't producing any more oil now than they did in the late-1970's, certainly this can't be considered a surprise to anyone except those who already believed their incessant claims that they can pump "at full capacity" when that horse has long since gotten up and disappeared. And anyone that stupid shouldn't be left in the debate anymore. No, no real tipping point, just the same horse manure people have been shoveling since the last time there was an energy crisis.
45ACP: For when you want to send the very best.
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Re: Tipping Point - IAEA replaces SA as world swing producer
by John_A » Sun 26 Jun 2011, 18:48:48
$this->bbcode_second_pass_quote('pstarr', '')$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('pstarr', '
')The truth is apparent that there is no swing producer anymore Just decline.
')The truth is apparent that there is no swing producer anymore Just decline.
At least we have some good news...
No one solves a problem until it is actually a problem. Peak oil is finally going to give Americans a decent sized problem to solve. What cheeses me off about it is that someone is going to get Bill Gates rich in this deal, and it will help out the country so much it will probably be worth it, another robber baron in the mix.
45ACP: For when you want to send the very best.
