Peak Oil is You
Donate Bitcoins ;-) or Paypal :-)
Page added on October 2, 2015
Russia and Saudi Arabia to Continue Pumping Oil
Russia and Saudi Arabia—the world’s two biggest oil producers—indicated Friday they weren’t pulling back from huge crude output levels that have helped send prices tumbling.
Russia said it produced oil in September at levels not seen since the fall of the Soviet Union, pumping an average of 10.74 million barrels a day, government data showed on Friday. Oil production increased 0.4% from August.
On the same day, one of the world’s most influential oil ministers—Saudi Arabia’s Ali al-Naimi—said his country would continue investing in oil and gas, saying his country remained committed to energy resource development, according to a Saudi Press Agency report. The world’s largest exporter has ramped up production above 10 million barrels a day for the past few months.
ENLARGE The output from those two countries adds to an already oversupplied global oil market, even with American output showing signs of weakness. Oil prices have fallen more than 50% in the past year as world supplies outpace demand by around 2 million barrels on any given day. On Friday, they turned higher as weekly data showed a sharp drop in U.S. drilling activity.
It is also the latest indication that Russia isn’t prepared to join the Organization of the Petroleum Exporting Countries in trimming production to prop up prices. OPEC has indicated that it will only consider a cut if other big suppliers, such as Russia, join it and several OPEC members have tried to woo the country.
Mr. Naimi, speaking at a Group of 20 conference of government energy officials in Turkey, again called on non-OPEC countries to help it “stabilize the market,” though he didn’t name Russia.
“Since the 1970s this industry has been experiencing sharp fluctuations in prices—up and down—which have impacted investments in the field of oil and energy, and its continuity,” Mr. Naimi said, according to Saudi Press Agency. “This volatile situation is neither in the interest of the producing nor consuming countries, and the G-20 countries can contribute to the stability of the market.”
The pleas come as OPEC finds its typical tool for boosting prices—supply cuts—is useless without help from other countries during this period of oversupply.
Saudi Arabia’s budget, which relies on oil exports for about 90% of its revenue, has also been hit. The International Monetary Fund forecasts the Saudi government will run a budget deficit this year of around 19.5% of gross domestic product, compared with a deficit of 3.4% of GDP last year.
Oil prices have also battered the Russian economy, where oil and natural gas sales account for more than two-thirds of export revenue. The oil price slump, coupled with Western sanctions and a weakening currency, has already pushed the country into a recession which the World Bank expects to wipe 3.8% off the Russian economy this year.
In September, Russian Deputy Prime Minister Arkady Dvorkovich ruled out any cuts, saying that output may only decline if prices remain low for a sustained period. Mr. Dvorkovich said even then, production wouldn’t fall by much.
“Russia has a different approach to the major OPEC countries—it strives to produce as much oil as it can all of the time and then deals with the consequences of the price afterwards,” said Christopher Weafer, founding partner of Moscow-based consultancy Macro-Advisory. “There is no possibility of Russia cooperating with OPEC to manage supply and there is zero possibility of Russia ever joining OPEC.”
ENLARGE Last November, OPEC, the 12-nation oil cartel, embarked on a policy of defending market share by keeping its output targets unchanged despite the global glut of crude. That has battered prices, leaving countries dependent on oil revenue, from Venezuela to Nigeria, struggling to shore up their public finances.
On Friday, Anton Siluanov, Russia’s finance minister, said oil prices won’t recover as quickly as after the 2008-09 financial crisis. His ministry sees oil averaging at $50 a barrel in 2016 and $52 in 2017. Brent crude, the global oil price benchmark, was trading at $48.60 a barrel on Friday.
The government has said because of the geology and harsh climate, Russian companies can’t adjust oil output as easily as in other producing nations. Also, the depreciation of the ruble makes it relatively cheaper to produce oil in Russia, helping to preserve oil-company margins.
“The low oil prices have not had any impact on the production plans” in Russia, said Pavel Kushnir, a Moscow-based oil and gas analyst at Deutsche Bank.
The bank estimates that Russian output this year will average around 10.6 million barrels of crude a day. That is above the 10.58 million barrels a day the country produced last year, a level of output not seen since the end of the Soviet Union.
73 Comments on "Russia and Saudi Arabia to Continue Pumping Oil"
makati1 on Fri, 2nd Oct 2015 11:14 pm
“His ministry sees oil averaging at $50 a barrel in 2016 and $52 in 2017. Brent crude, the global oil price benchmark, was trading at $48.60 a barrel on Friday.”
Or less….
makati1 on Sat, 3rd Oct 2015 12:14 am
In other news:
“This led to an incredibly embarrassing response from Western mainstream media, claiming that ‘moderate’ terrorists, not ISIS (despite there being no real difference), had been bombed and civilians had been killed.
Enter Putin (again), who has now branded those reports ‘information warfare‘. The reason why is that those reports emerged before any Russian combat missions had even started.”
http://21stcenturywire.com/2015/10/01/putin-attacks-information-warfare-civilian-bombing-reports-emerge-before-strikes-begin/
“Information on Civilian Casualties” Appeared “Before” Russian Jets in Syrian Airspace”
http://www.globalresearch.ca/information-on-civilian-casualties-appeared-before-russian-jets-in-syrian-airspace/5479350
” Mainstream media march in lockstep with US imperial lawlessness. It’s longstanding policy.
Propagandists masquerade as journalists. Managed news misinformation substitutes for truth and full disclosure. Readers and viewers are systematically lied to. Mind manipulation works this way.
Neocons infest Washington. They hugely influence policy. The Liz Wahl affair highlights to what lengths they’ll go. More on this below.”
http://www.globalresearch.ca/anti-russian-media-wars/5374705
The dumbed down Us sheeple never hear the real facts, just brainwashing propaganda 24/7/365.
shortonoil on Sat, 3rd Oct 2015 7:36 am
Russia and Saudi Arabia to Continue Pumping Oil
What exactly are they expected to do with it? Does the author think that they are going to freeze it, and eat it? The world will keep pumping oil until the pumps break down, the power goes off, or the starving masses burn the place down!
Stupid!
JuanP on Sat, 3rd Oct 2015 8:03 am
I never cease to be amazed by all these propaganda pieces that talk about agreements to increase and maintain production for this or that reason.
There is no agreement! There never will be an agreement! OPEC will never again agree on cuts because most of its members simply can’t cut production because they need to sell as much as possible to pay the bills.
All countries in the world will keep pumping full out for as long as they can afford it. As low prices interfere with adding new production and declines set in, production will fall, as it’s already falling dramatically in US shale fields, which are coming out as the first loosers. This shale production decline was extremely foreseeable, and we’ve been talking about it here for over a year now. With US shale’s higher costs and significantly higher decline rates, they were bound to be the first to go down.
I was wrong in expecting Russia’s oil production to decline in 2015. I had expected Russia’s post soviet peak to happen in 2014, and I was wrong about that. Russia has managed to increase production slightly this year, which is remarkable, considering everything they have going on. The Russian economy is headed towards an economic contraction this year that will be on the higher end of my original estimate of 2.5-4%, but still within my expectations and forecast.
I expect 2016 to be a brutal year for all commodities, if prices remain this low as I expect them to. This will be a particularly bad year for fossil fuels. It will get bloody. It’s time for some bankruptcies and M&As.
onlooker on Sat, 3rd Oct 2015 8:39 am
“I expect 2016 to be a brutal year for all commodities, if prices remain this low as I expect them to. This will be a particularly bad year for fossil fuels. It will get bloody. It’s time for some bankruptcies and M&As.” Highlights the bind we are in, usually low prices are a good thing for consumers. Yet as all segments of the economy are weak then low prices are not good for producers which creates difficulties for them. Anywhere you look things are hanging by a thread.
onlooker on Sat, 3rd Oct 2015 8:41 am
I may add that since economic systems are so interconnected their is a ripple effect on all segments of economy if one is hurting.
Boat on Sat, 3rd Oct 2015 9:55 am
onlooker,
As usual the doomers see only one side of the story. Products and industry that are energy intensive will have huge savings and good years. Think farmers, nat gas users, plastic manufacturers, car manufacture, wind farms etc. Even us poor consumers will pocket a few thousand dollars every year as long as prices are low.
Truck drivers drive over an estimated 140 billion miles per year. Diesel sells $1.50 per gallon cheaper. The ripple you talk about is a good ripple.
Davy on Sat, 3rd Oct 2015 10:25 am
There you go Boater “bad news is good news”. That message has been working well on Wall Street. That is a good cornucopian fallback. Works on any problem as long as we have suckers born daily.
BobInget on Sat, 3rd Oct 2015 10:25 am
Despite economic slowdowns, demand exceeds
production world-wide.
https://www.iea.org/oilmarketreport/omrpublic/
http://www.ogj.com/articles/2015/03/eia-monthly-average-brent-price-up-for-first-time-in-8-months.html
“Russia, Venezuela, Iraq, and Iran vs Saudi Arabia”…. now, that makes for an interesting tale of international woe and intrigue.
BC on Sat, 3rd Oct 2015 10:29 am
“Saudi Arabia’s budget, which relies on oil exports for about 90% of its revenue, has also been hit. The International Monetary Fund forecasts the Saudi government will run a budget deficit this year of around 19.5% of gross domestic product, compared with a deficit of 3.4% of GDP last year.”
James Tipper on Sat, 3rd Oct 2015 10:36 am
@JuanP
I’m impressed too that Russia has increased oil output, all be it seems to be leveling off. Unfortunately their oil is also expensive and hard to produce.
And yes I agree 2016 will be absolute hell for commodities. If there any WallStreet tycoons reading in, I would short all commodities, you’ll make a fortune before money becomes worthless.
Deb on Sat, 3rd Oct 2015 10:41 am
I wouldn’t short gold. It will shine.
shortonoil on Sat, 3rd Oct 2015 10:45 am
“Products and industry that are energy intensive will have huge savings and good years. “
In the wake of the world wide monetary/ financial meltdown that is now occurring it seems very likely that the bankruptcy attorneys representing these people will bring that very point to the judges attention!
BC on Sat, 3rd Oct 2015 10:46 am
https://research.stlouisfed.org/fred2/graph/fredgraph.png?g=216N
Boat, health care (HC) spending is growing at TWICE the rate of US GDP, and rents for 35% of households are growing faster than inflation, which are costs that are more than absorbing any savings from the decline in the price of gasoline for consumers.
Top line US corporate revenue growth is at ~3% (slowest since the Great Depression), whereas firms’ spending for HC is ~7.5%.
HC spending per capita is $10,000, $26,000 equivalent per household (with median income of $52,000), over 50% equivalent of private wages and salaries, nearly twice after-tax corporate profits, and 18-19% of GDP.
Utter madness.
Combined public and private HC and gov’t spending less public HC now contributes two-thirds to total final sales, which has decelerated since 2000 and 2007 from 5% to an average rate of 3.7% and 2.6% (and 3% and 1.9% per capita).
Rents in many major metro areas are rising faster than reported consumer price inflation.
The result is that the bottom 80%+ of households have no discretionary income and cannot save.
Because of the most extreme wealth and income concentration since the Roaring Twenties and Gilded Age, the top 0.001-1% to 10% have never had it better, and there is a growing detachment from, and insensitivity to, the bottom 80-90%. The self-satisfaction and affluence of the top 1-10% highly distorts their perceptions of “the economy”, its relative performance, and the pernicious effects of inequality on the bottom 90%.
shortonoil on Sat, 3rd Oct 2015 10:54 am
“Despite economic slowdowns, demand exceeds production world-wide.”
If demand is up then why did we see last week’s inventory build to be the highest in 5 months? Production is flat, inventories are growing but demand is up. Must be some of the New Math?
Boat on Sat, 3rd Oct 2015 11:01 am
BC,
The top 3 problems are Health care cost, Military cost, legal and illegal immigration cost. All three of these are easily solved politically.
I don’t worry about housing because it is easily affordable to those who have multiple incomes that live together. That is a life style choice. It is cheaper to own a home than rent. If three wage earners buy a much larger home/split 3 ways they will live in nicer place and save money. That is what my family did and it works great. PS, love having a baby in the house, kids bring out the love.
The 1%ers, there will be a time they get their hair cut. The popularity of feel the burn Burnie Sanders shows the sentiment is growing. This election cycle he probable won’t win but he will get a lot of votes.
BTW One month has passed, you got 4 months left for the world to collapse. Still feel good about that assessment?
Davy on Sat, 3rd Oct 2015 11:07 am
Boat collapse is a process as much as an event. If you are looking for an event it is possible you will wait. If you can’t see the process of collapse you are obviously intellectually challenged.
BC on Sat, 3rd Oct 2015 11:08 am
JT, the CRB Index (energy overweighted) adjusted for the US$ has crashed back to the levels of the early to mid-1970s.
However, the CCI (balanced) is at the levels of 2007-08 to 2010 and breaking uptrend lines from the low 2000s.
Copper has a possible technical projection another 25-30% lower.
If we are facing another global deflationary recession and bear market, including a global unreal estate bust, another leg down for commodities is conceivable, if not likely.
Boat on Sat, 3rd Oct 2015 11:10 am
Poor short,
“Despite economic slowdowns, demand exceeds production world-wide.”
If demand is up then why did we see last week’s inventory build to be the highest in 5 months? Production is flat, inventories are growing but demand is up. Must be some of the New Math?
World GDP is up and growing. Consumption is growing. The world is still in a global glut.
Demand does not exceed production. Production exceeds demand. This is in spite of the economies hit hard by exporters and frackers.
Try reading more and looking at sites like IEA, EIA, IMF, etc
BC on Sat, 3rd Oct 2015 11:19 am
Boat, a global deflationary bust is emerging, but the TBTE banks, gov’ts, and central banks are keenly aware and no doubt will resume coordinated QEternity, ZIRP, NIRP, and all manner of bailouts as the end game continues.
The vast majority of Americans are not (yet) (re)socialized/(re)conditioned to multi-generational household living conditions, but it is increasing out of necessity for the bottom 80%. Hyper-individualism and hyper-competitiveness has a high personal cost for most of us.
Asians, Latinos, Africans, and gypsies know this well and benefit from their tendency toward extended family and mutual aid.
I personally perceive family/multi-generational mutual aid as among the most valuable assets one can possess (or have access to).
BC on Sat, 3rd Oct 2015 12:00 pm
https://www.imf.org/external/pubs/ft/wp/2015/wp1506.pdf
http://www.economist.com/blogs/economist-explains/2015/09/economist-explains-10
http://www.smh.com.au/business/the-economy/the-pain-trade-is-this-the-beginning-of-the-end-of-globalisation-20151001-gjzld0.html
http://www.ft.com/intl/cms/s/0/836e7338-6769-11e5-97d0-1456a776a4f5.html#axzz3nWaix1e3
http://wolfstreet.com/2015/07/22/global-trade-drops-most-since-2009-cpb-merchandise-world-trade-monitor/
Boat, trade is not growing, and the WTO’s 2.8% real GDP forecast includes the overstated 7% China growth. Adjusting for China’s actual growth, global real GDP is no faster than, say, 2.3%, and 1.2% per capita.
Russia, Brazil, Canada, Oz, and parts of the EZ are in recession, and China’s production, export, and construction sectors (55% or more of GDP) are in recession. The US is decelerating below 2% for the 4-qtr. avg.
shortonoil on Sat, 3rd Oct 2015 12:17 pm
“Poor short,
“Despite economic slowdowns, demand exceeds production world-wide.”
Poor Boat, can’t read a graph, or run a calculator. The 8 years between 2006 and 2013 world petroleum production has increased at an average rate by 0.53% per year:
http://www.indexmundi.com/energy.aspx?product=oil&graph=production
That compares with the 1960 to 2005 average rate increase of 2.51% per year, or 21% of its historic growth rate. Petroleum production is now not even increasing fast enough to compensate for the additional energy needed to produce it; which on average is 78,000 BTU/ barrel per year.
Attempting to spin this into anything other than an up, and coming train wreck for the petroleum industry is ridiculously stupid. It just goes to show how frantic the industry, and its hired henchmen have become.
http://www.thehillsgroup.org/
Boat on Sat, 3rd Oct 2015 12:20 pm
bc,
We will soon how resilient the bubble is that has gone on for decades. stimulus. A haircut is needed IMO but as long as governments create new markets from immigrants I just see a lowered standard level of living creep. I don’t think this cycle is the last one.
Davy on Sat, 3rd Oct 2015 12:27 pm
Boat give the immigration story a rest. Immigration is not going to save anything or make a material difference in growth when the momentum of a global system is stalling.
Boat on Sat, 3rd Oct 2015 1:21 pm
Davy,
When you add over 1 million people a year that means more subdivisions, more Walmart, more gas stations, more grocery stores, more restaurants, drives up consumption in everything. Quit drinking goats milk.
GregT on Sat, 3rd Oct 2015 1:39 pm
Boat,
Adding over 1 million people per year makes no difference if the entire system itself is slowing, other than less of everything to go around, and a reduced standard of living.
Quit drinking the kool-aid. Goat’s milk is much better for you.
marmico on Sat, 3rd Oct 2015 1:49 pm
>I>Poor Boat, can’t read a graph
Poor shortonoil. Two years behind the curve and a quart shy of oil.
http://www.eia.gov/totalenergy/data/monthly/pdf/sec11_5.pdf
shortonoil on Sat, 3rd Oct 2015 1:56 pm
“When you add over 1 million people a year that means more subdivisions, more Walmart, more gas stations, more grocery stores, more restaurants, drives up consumption in everything.”
When there is no increase in economic activity it doesn’t mean anything but more people. There has been no increase in oil production, so most likely there has been no increase in economic activity. Production over the last two, and a half years has been flat!
World Production , Monthly (right hand graph)
http://www.eia.gov/totalenergy/data/monthly/pdf/sec11_2.pdf
Production is flat, inventories are increasing so consumption is going down. The demand reports that you like to refer to include the increase in inventories as “demand”. Declining consumption is indicative of a declining economy. There are more people consuming the same amount of product. The “average” person is getting poorer!
One look at the world economic state clearly shows that we have entered a deflationary cycle. One half of China’s commodity suppliers are not making enough money to pay the interest on their debt. Industry all over that nation are laying off masses of workers. Canada’s housing bubble is bursting, and the US employment data is so bad its pathetic. Most of Europe is in a depression.
The only way to convert this pig’s ear into a silk purse is through the use of outright deception, and lies. Things are bad, and getting worse.
apneaman on Sat, 3rd Oct 2015 2:00 pm
Poor marmico can’t read the writing on the wall. Actually you can, but you’re wasting your time trying to make it say something else. This is what the religious do when reality sets in.
thomas on Sat, 3rd Oct 2015 2:00 pm
Short, you are a liar and a jerk patented
“The 8 years between 2006 and 2013 world petroleum production has increased at an average rate by 0.53% per year” WRONG
2006 71,945.59 -0.32 %
2007 71,611.84 -0.46 %
2008 72,581.54 1.35 %
2009 71,317.64 -1.74 %
2010 73,216.29 2.66 %
2011 73,485.09 0.37 %
2012 75,063.80 2.15 %
2013 75,239.91 0.23 %
read and stop playing the pseudo experts who are not even fucking read a simple table
“That compares with the 1960 to 2005 average rate increase of 2.51% per year” WRONG
1980 59,420.56 NA
1981 55,904.87 -5.92 %
1982 53,312.60 -4.64 %
1983 53,130.85 -0.34 %
1984 54,379.94 2.35 %
1985 53,843.26 -0.99 %
1986 56,202.61 4.38 %
1987 56,536.07 0.59 %
1988 58,593.86 3.64 %
1989 59,694.83 1.88 %
1990 60,404.45 1.19 %
1991 60,112.96 -0.48 %
1992 60,093.48 -0.03 %
1993 60,157.95 0.11 %
1994 58,805.19 -2.25 %
1995 59,949.60 1.95 %
1996 61,282.65 2.22 %
1997 63,317.67 3.32 %
1998 64,468.21 1.82 %
1999 63,322.39 -1.78 %
2000 66,268.41 4.65 %
2001 65,865.38 -0.61 %
2002 64,973.32 -1.35 %
2003 67,327.29 3.62 %
2004 70,706.05 5.02 %
2005 72,176.09 2.08 %
http://www.indexmundi.com/energy.aspx?product=oil&graph=production
apneaman on Sat, 3rd Oct 2015 2:39 pm
Oil and gas companies skip Alberta’s largest career fair
Only 100 booths at this year’s event, down from the 175 seen in recent years
“For the first time ever, not a single oil and gas company was hiring at the Alberta Employment and Career Fair, the largest such event in the province.”
http://www.cbc.ca/news/canada/edmonton/oil-and-gas-companies-skip-alberta-s-largest-career-fair-1.3255324
marmico on Sat, 3rd Oct 2015 2:42 pm
More piling on. Let’s just deal with the last 40 years, since data prior to the OPEC engineered cartel 1973 supply shock has negligible gravitas.
From 1975-1995(Ford, Carter, Reagan, Bush41, Clinton), crude production increased 18%.
From 1995-2015 (Clinton, Bush43, Obama), crude production increased 28%.
apneaman on Sat, 3rd Oct 2015 2:44 pm
“War is peace.
Freedom is slavery.
Ignorance is strength.”
Notley says acting on climate change will help sell Alberta’s oil
“It may sound like a contradiction in terms, but the Alberta Premier told a business luncheon in Toronto on Friday that ramping up oil sands production and tackling climate change can be done at the same time. Ms. Notley’s speech to the Empire Club capped her first major interprovincial trip since she led the NDP to power in May.
“Under our leadership, Alberta’s abundant oil and gas reserves will remain open to investment,” she told hundreds of Bay Street movers and shakers. “It is my hope that by acting decisively on the issue of climate change, we will reframe the current national debate over pipelines and energy infrastructure.”
http://www.theglobeandmail.com/news/alberta/notley-says-acting-on-climate-change-will-help-sell-albertas-oil/article26640276/
apneaman on Sat, 3rd Oct 2015 2:50 pm
Repsol to cut 1,500 jobs amid slumping oil prices
http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/repsol-cuts-1500-jobs-amid-slumping-oil-prices/article26624414/
apneaman on Sat, 3rd Oct 2015 2:58 pm
marmi which definition of crude? The newer one or the traditional?
How changing the definition of oil has deceived both policymakers and the public
“But because natural gas plant liquids production has been growing rather rapidly due to recent intensive drilling for natural gas and because those liquids are misleadingly lumped in with oil supplies, people have been mistakenly given the impression that world oil production continues to grow. Not true! What’s growing is a category called “total liquids” which encompasses oil, natural gas plant liquids, biofuels and some other minor fuels. Total liquids are growing only because of large gains in natural gas plant liquids and minor gains in biofuels. And, this is why it is so important to understand what natural gas plant liquids are.”
http://resourceinsights.blogspot.ca/2012/07/how-changing-definition-of-oil-has.html
U.S. refiners turn to tanker trucks to avoid ‘dumbbell’ crudes
” Firms such as Marathon Petroleum Corp and Delek U.S. Holdings are buying up tanker trucks and extending local pipeline networks in order to get more oil directly from the wellhead, seeking to cut back on blended crude cocktails they say can leave a foul aftertaste.”
http://www.reuters.com/article/2015/03/23/us-usa-refiners-trucks-analysis-idUSKBN0MJ09520150323
thomas on Sat, 3rd Oct 2015 3:02 pm
Short
” Production over the last two, and a half years has been flat!” WRONG
from January 2013 to June 2015 we went from 75,822mb / d 80,116mb / d
http://www.eia.gov/totalenergy/data/monthly/pdf/sec11_5.pdf
a flat production remains around a given number ( 75 mb / d in this case is not increasing)
by cons it is found that the rate of monthly increase is low but this increases is not the definition of a flat output hmm so before we write for information instead of writing bullshit
antaris on Sat, 3rd Oct 2015 3:12 pm
Thomas , using my shitty iPhone calculator using your numbers for the years 2006 to 2013, I calculate out about .56% growth per year. You are the one looking like the Liar and Jerk not Short.
MrNoItAll on Sat, 3rd Oct 2015 3:18 pm
Thomas — My understanding is that the sole increase in production since conventional oil peak around 2005 has been in so-called tight oil production — you know, the shales, the tar sands — that, and ethanol. Your increases in “oil” production have only been enabled by massive debt and financial fraud. That entire “oil” production increase did very little to contribute net energy to the global economy, which is why since the 2008 near-crash and burn, the global and national economies have been barely limping along running on fumes and trillion$ in unpayable debt. Your a moron and a fool to be crowing about any increased production since 2005, proving your ignorance beyond doubt. And you have a real clever way with words too — oh, and also such a talented and classy debating style (not!). Nony, is this another one of your sock puppets?
Davy on Sat, 3rd Oct 2015 3:27 pm
MR, I was sniffing a sock puppet myself. Who the frig is thomas? He waltzes in like an expert blathering figures. I know, thomas is quintard’s brother both close friends to the NOoo.
marmico on Sat, 3rd Oct 2015 3:37 pm
marmi which definition of crude? The newer one or the traditional?
Traditional.
thomas on Sat, 3rd Oct 2015 3:40 pm
antaris
http://www.indexmundi.com/energy.aspx?product=oil&graph=production
“The 8 years between 2006 and 2013 world petroleum production has increased at an average rate by 0.53% per year”
2006 71,945.59 -0.32 % +0.53% NO
2007 71,611.84 -0.46 % +0.53% NO
2008 72,581.54 1.35 % +0.53% NO
2009 71,317.64 -1.74 % +0.53% NO
2010 73,216.29 2.66 % +0.53% NO
2011 73,485.09 0.37 % +0.53% NO
2012 75,063.80 2.15 % +0.53% NO
2013 75,239.91 0.23 % +0.53% NO
1) an average rate that is growing , it does not therefore decreases Short is a liar
2) it states an average rate of INCREASE Short made his mean transforming the minus sign to a plus sign ouaah yes it falls just forgetting that there ey production fucked and that in this case a drop in production is not increasing my God here is the PO.com level is made on an average production increase with years of decline and forgetting that when writing ” The 8 years between 2006 and 2013 world petroleum production has increased at an average rate by 0.53% per year” quidam includes the production increase has fai but if it does not check shorts or other cheats on him and lead astray it is serious and it is indicative of your level of knowledge near the Void
thomas on Sat, 3rd Oct 2015 3:52 pm
Obviously I know how it goes since 2005 but it is a boat admissible argument.
when the argument of the debt I agree , for against for net energy there has many of ways to calculate that everyone sees noon at his door. I do not know enough to start me . By cons with your diversion (arguments that I know but it does not answer the question) Short or when someone else says something and put a link to support his argument and that this source said the contrary that that avavnce it and that it is not the first time this happens you call it how?
Oh and when the defense line 1 ie I Nony this is wrong but hey when your little habits are shaken you switch in a state of near paranoia and delusions of persecution so good?
Davy on Sat, 3rd Oct 2015 3:56 pm
Yeap, boys, it is the NOoo. We love ya NOoo. Quit your game playing and act your age.
rockman on Sat, 3rd Oct 2015 3:57 pm
“Despite economic slowdowns, demand exceeds production world-wide.” No it didn’t: the world it buying every bbl it can at the current price. And producers are selling every bbl they can at current prices. The market is balanced. Any inventory increase/decrease in not relevant because that volume is insignificant compared to current consumption. But there is a huge shortage of $20/bbl oil just as there is a huge surplus of $100/bbl oil. Which obviously explains why you see neither being sold.
It really isn’t as complicated as some like to pretend. If there were buyers willing to pay the KSA $100/bbl the KSA would be selling it for that price. And if there were producers willing to sell at $20/bbl there would be a lot of buyers. Oil prices are being controlled by the buyers: they won’t pay a $ more then what they are willing to pay. The oil sellers could charge less then the current market price. But they cannot charge more. The only control the oil sellers have is the volume they sell…not the price.
The KSA could price their oil at $70/bbl tomorrow. Exactly how much they would sell at that price is unknown but they would surely lose market share. But the market would lose a huge volume of $45/bbl oil. But the question would remain: which buyers would have decreased oil purchases? Assuming prices would increase to $X/bbl (less then the $70/bbl required by the KSA) only those buyers who could afford $X/bbl would still be buying. Those they couldn’t…wouldn’t. And the KSA obviously would get that market share: if those buyer couldn’t afford $X they couldn’t afford $70/bbl. Thus the only way the KSA can max its cash flow is to sell as much oil as possible AT THE CURRENT MARKET PRICE.
Simple, simple, simple. Think about: at current price levels the KSA is losing more then twice as much revenue as the US shale producers. Who is getting hurt worse? Does anyone think the KSA hasn’t stalled or cancelled many $billions in new projects? Does anyone think KSA investments are governed by different economic considerations then those controlling US shale players?
Again: simple, simple, simple
antaris on Sat, 3rd Oct 2015 4:05 pm
Not sure who it is but they sound confused.
shortonoil on Sat, 3rd Oct 2015 4:51 pm
“Short, you are a liar and a jerk patented”
You are apparently an ill mannered ignorant moron:
The average of -.0.32, -0.46, 1.35, -1.74, 2.66, 0.37,2.15, 0.23
is equal to 0.53. If you are trying to play the part of an absolute jack ass; congratulations, you have done a great job.
Boat on Sat, 3rd Oct 2015 5:02 pm
MrNo,
Your understanding is wrong. Russia is at an all time high in production. Iran produced more lately than earlier in the sanction time zone. The Saudis production is at an all time high. The frackers and tar sand folks had increased production. Let’s not forget Iraq. This is what led to the glut, all chasing that $100 a barrel
oil.
Then there were not enough buyers and oil started filling up the storage tanks world wide. Frackers and many producers took the hit when prices bottomed out. But the market is still overproducing even though the world is still consuming more.
Eventually demand will catch up with dropping production and prices will rise. Simple stuff, supply and demand
shortonoil on Sat, 3rd Oct 2015 5:02 pm
“by cons it is found that the rate of monthly increase is low but this increases is not the definition of a flat output hmm so before we write for information instead of writing bullshit”
Only a true scumbag troll could argue over the definition of “flat”. Now that you have wasted 5 minutes of everyone’s time, take the ten cents that they paid you, and go buy yourself a lollypop.
Boat on Sat, 3rd Oct 2015 5:23 pm
Thomas,
You will find doomers cant read charts and data if it goes against their immediate collapse theory.
Short,
Here is another chart for you that marmico posted. Just in case you missed it.
http://www.eia.gov/totalenergy/data/monthly/pdf/sec11_5.pdf
marmico on Sat, 3rd Oct 2015 5:25 pm
Only a fuctard would write that “Production over the last two, and a half years has been flat”.
You are a fuctard.