Peak Oil is You
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Page added on April 15, 2012
Saudis committed to lower oil prices
Ali Al-Naimi, the Saudi Minister of Petroleum and Mineral Resources, released a statement commenting on the prolonged period of high oil prices.
“We are not happy about it. The Kingdom [of Saudi Arabia] is determined to see a lower price and is working toward that goal,” he said during his visit to Seoul.
Saudi Arabia increased output to 10 million barrels per day in April, Al-Naimi told reporters.
Output of 10 million bpd would be the highest since November, when Riyadh pumped more than it had for several decades.
The minister also said other OPEC producers were raising output, and too, along with increased Saudi production, should ease the pinch.
“The global inventories in Saudi Arabia and around the world are full,” he said.
“Other OPEC members, such as Libya, Iraq and Angola, have also taken strides toward increasing output.”
Al-Naimi recorded output in March at 9.9 million bpd, when he said Saudi Arabia was prepared to produce at its full capacity of 12.5 million bpd.
He identified $100 a barrel as an ideal price for producers and consumers earlier this year.
Brent traded above $120 a barrel yesterday and has risen about 13 percent this year as tightening US and European sanctions target exports from Iran.
There are some analysts who believe the world is at ‘peak oil’, meaning we will never increase oil extraction by significant numbers; certainly, not enough to meet growing needs.
6 Comments on "Saudis committed to lower oil prices"
Kenz300 on Sun, 15th Apr 2012 3:14 am
The price of oil depends on the growth of China and India. China is now the worlds largest auto market and second largest economy. They are growing at 8% a year using more and more oil to fuel that growth. We will see if the worlds supply of oil and keep up with the increasing demand from China and India.
BillT on Sun, 15th Apr 2012 3:54 am
This article is pure BS! The Saudis have zero ability to control the price of oil except to push it higher by dropping their exports. Funny that they said the ‘ideal price’ was $80 less than a year ago. Now it is $100. Next year it will be $120 and oil will be selling for $140. Get used to it…
Arthur on Sun, 15th Apr 2012 11:30 am
SA is an American client state, where it’s regime is kept in place by the American military, so that all these princes can party in southern France. I am not convinced that the SA regime would not give in to demands from Washington to keep a lid on prices for oil destined for western markets.
SOS on Sun, 15th Apr 2012 3:02 pm
The SA regime wants to sell more oil. They understand their price elastsicity. They will make more at a lower price becuase the change in demand will be greater than the change in price.
They also know vast reserves are coming in line from the private lands in North America and oither oil rich areas of the world including Brazil.
The US government is doing its best to keep up the false image of scarcity. They have done everthing they can to stop production in North Dakota. They have cancelled the pipeline in favor of Warren Buffets Rail Road, they have unleashed the EPA to stop fracking. They regulate at everylevel with the intent of making it uneconomic to bring oil/gas to the surface.
You are all paying that price now with high gas, high oil and higher prices for everything. You are doing this because of politics not because of any realtity to do with oil production.
MrEnergyCzar on Sun, 15th Apr 2012 11:55 pm
Show us 12.5 mb/day. Enough with talk… Do…
MrEnergyCzar
BillT on Mon, 16th Apr 2012 1:48 am
SOS…’vast reserves’ are NOT coming on line anywhere. You are counting your barrels before the well is even drilled. Reality is a bit different. Those ‘vast reserves’ will not even be able to keep up with the decline from established fields. We have been sliding down the far side of the Hubbard curve for a few years now in the real world.
Cheap oil is NOT coming back this side of a world wide depression that will take away any chance you have to buy it. You may blame the government but it is Mother Nature that is cutting off the tap. All of that ‘oil’ in the US will NOT be recovered, ever.