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“In three to five years, I would say that OPEC is meaningless because everyone will be running at capacity,” said Adkins.
from a random news web page:
``The quotas have become meaningless,'' said Julian Lee, an analyst at the Centre for Global Energy Studies, a London-based consulting company. ``In addition to Venezuela and Iran, Indonesia is well below its quota, perhaps half a million barrels per day or more. As the quotas increase more and more others are going to find that they simply don't have capacity to meet their quota levels and it's really only Saudi Arabia that has the spare.''
I find it very odd that oil prices are skyrocketing, yet they are producing more and more oil. The "peak oil" doesn't seem to fit in here, as if there was actually an oil crises why would OPEC raise the production by over 20 million barrels a day?
The oil companies wish to make more money? Or are the prices justified? IMO prices should drop if output rises. But this is not the case.
Time to buy an electric hybrid car, as the SUV's just got less appealing.
Originally posted by Djarums
i firmly believe a good chunk of this price outrage is due to overgreedy companies with powerful lobbying firms that have politicians in their pockets.
Originally posted by Djarums
kenshiro makes an excellent point.
increase production all you want. if we can't handle the sudden quadruple supply we have accomplished nothing.
Saudi Arabia more or less managed to market its oil around the $25-a-barrel level for as long as it could. The big event of 2004 is that the oil market called Saudi Arabia's bluff. They couldn't deliver the spare capacity they said they had. It turns out they have spare capacity, but it is in heavy oil, not light oil, which is easy to refine and doesn't have much sulphur in it. It's also known as "light sweet" crude, and it produces more gasoline and more heating oil. So 2004 was the year in which the world production of light oil peaked. There are no big fields of light oil producing now that can produce more. Saudi Arabia has heavy oil to sell, but they have to discount it much more. If Saudi Arabia could have produced more light oil, they would have.
Feb. 18 (Bloomberg) -- Shell Canada Ltd. Chief Executive Officer Clive Mather says oil from his Athabasca project, where tar sands are boiled to produce crude, can cost twice as much as drilling in the North Sea. And it's worth every cent, he says.
``If we had access to unlimited conventional oil, I guess the interest in Athabasca would diminish quite quickly, but that isn't the case,'' Mather said in a Feb. 3 interview in London. ``This is high-cost oil, there's no question about that. At current prices, it's still very good business.''
A 15-year decline in oil reserves is spurring companies such as Royal Dutch/Shell Group, Exxon Mobil Corp. and ChevronTexaco Corp. to spend $76 billion in the next decade to boost supplies of oil from tar sands and diesel fuel from Qatari natural gas. Oil executives say they have no choice but to try alternatives to drilling because there is not much more crude to be found in their current fields.
``We're damn close'' to the peak in conventional oil production, Boone Pickens, who oversees more than $1 billion in energy-related investments at his Dallas hedge fund firm, said in an interview in New York Feb. 16. ``I think we're there.'' Suncor Energy Inc., the world's second-biggest oil-sands miner, is his largest holding.
Originally posted by subz
India and China emerging as the Worlds energy guzzling powerhouses is to blame for the price rises inspite of increased production.
[edit on 22/6/05 by subz]