Oil consumers ask for boost in output

Oil consumers ask for boost in output

www.msnbc.msn.com

The five nations — the United States, China, Japan, India and South Korea — differed, however, on how urgently oil subsidies should be phased out, with Washington backing bold movement while India and China warned of political and economic instability.

Cabinet ministers from the five countries, which account for more than half the world's consumption of energy, agreed that the sharp surge in oil prices was a menace to the world economy, and that more petroleum should be produced to meet rising demand.

(visit the link for the full news article)

Isn't it cute. These 'consumers' seem to think that just producing more will fix all of their problems.

How naive to not understand the levels of greed they are faced against.



www.msnbc.msn.com
(visit the link for the full news article)

Not going to happen. Peak Oil has been reached.


Here in the US, I am starting to believe that they knew that it was going to happen hence the lack of refineries built in the past 30 years.

I agree with you on both counts bismarcksea.

US production peaked in 1971. Prior to that we were net exporters. WE were the world's Saudi Arabia. By the end of the 60's decade, we had managed to deplete our 'economically' recoverable resource...sold-off in the world market for an average $3.00 a barrel (1958 - 1970) Now we expect OPEC producers to follow suit.

Well, Saudi Arabia may not comply.

Shura member calls for oil production curbs in Saudi

Saudi Arabia's Shura council (parliament) will hold a series of meetings over the next two weeks to discuss a controversial proposal by a key member to curb oil production to save reserves for better prices, Saudi media reported. The council will listen to a report by deputy chairman of the Shura water and public utilities committee, Salim bin Rashid Al Marri, who will argue for cutting crude supplies to maintain the Kingdom's underground reserves.....

....."The level of oil production in Saudi Arabia must be linked to the country's actual development and financial needs not to market prices and the need of foreign consumer. It is not wise to sap this resource just to satisfy the demand of foreign markets. Full Text

I tend to think supply is secondary to what we're seeing. Since I haven't heard of shortages or rationing. Inflation is the primary factor IMO. Since oil priced in Gold has actually come down in the last 5-10 years.

Inflation simply had to show itself somewhere and since Gold and Silver manipulation has been mastered by the PTB, oil is the next weak point. Being foreign controlled by OPEC, it doesn't lend itself to manipulation so easily. It is also a perfect host for inflation, allowing it to filter into Everything, as is its Nature.

Sad part is, we're just getting started. The unfunded entitlements and wars will require more and more inflation. At the same time the Dollar will lose Reserve Currency status because of that devaluation. Then all those Trillions held in Reserve around the world will be coming home and they will be very unwelcome. But, as they say 'Chickens, they do come Home to Roost'.

Oh, and of course there's the 3/4 Trillion (official #) that we are borrowing every year to stay afloat. How will we convince other countries to loan us money when we're broke and everyone knows it. Germany went 'bout the same way before the Weimar Hyperinflation. Investment money poured in at first as people thought that the Mark would eventually rise. When it became clear that the Mark was toast, all that money reversed course and flowed out. Too many similarities to what's happened and is happening in the US.

reply to post by HimWhoHathAnEar

Absolutely HWHAE...tooooo many Dollars in circulation...zero incentive for OPEC to ramp production even if they could (many doubts here). Still, I believe it's both the currency...and...production v demand pressures.

It's been documented that global demand, began to cross global production back in 2005. G-production is currently estimated at 85MM bbls pd....G-demand is approximately 87MM bbls pd. There exists a time-lag. We won't witness oil shortages unless/until existing inventories/stockpiles are depleted at both foreign & domestic non-strategic terminals, e.g. The Cushing Depot....but we will see spot & forward prices bid-up. The idea is that higher prices will force end-user cut-backs....resulting in sufficient 'demand destruction' to restore market equilibrium, and price stability.

You probably read that crude inventories are currently declining.

Gasoline prices on the other hand, can be manipulated at the refinery level. Refiners won't crack for free. If the spread between input costs and finished gasoline products is too narrow...they'll simply operate at reduced capacity until gas inventories drop, and prices rise.

Abolish the Federal Reserve...pillory every member of the sitting congress...impose term-limits...demand comprehensive, and sustained alternative energy policies...above all, keep government out of the markets.

Edit: With the exception of Ron Paul...you know...the pillory thing

[edit on 8-6-2008 by OBE1]

This peak oil argument may make sense sometime in the future, but there's too much evidence against it right now. You can't really yell peak oil while the US sits on more oil than Saudi Arabia and our politicians choose to not tap it. I might be able to buy a "manmade peak oil" argument as I think any current shortages are caused by politics.

I dont think its peak oil at all. I think it has everything to do with the dollar. The American Peso is what is causing this and it will not change ANYTIME soon. We have a government that continues to finance this Iraq war on the charge card along with everything else. They dont want to raise taxes because god forbid we pay for this pathetic war that we started. Lets also add in the policing of the world and the police and welfare state we run here at home. If you want to blame anything blame our government and our monetary policy. All this other crap is a cover for the real issue dont be fooled.

www.youtube.com...

Here's a video that explains it in a pretty straight forward way.

Originally posted by HimWhoHathAnEar
www.youtube.com...

Here's a video that explains it in a pretty straight forward way.

Great Great video star for you . It sums my point up pretty well.

reply to post by HimWhoHathAnEar


Thanks for posting this video. It explains things in a way that even I can understand.

Will pass it around.

All readlly good points being made in this thread. People refuse to wake up, and it's going to cost them dearly.

EDIT: typo

[edit on 9-6-2008 by LostNemesis]

Please do feel free to drop that video link in any thread you want to. Make it your own. People need to understand what's happening.

reply to post by LostNemesis

These 'consumers' seem to think that just producing more will fix all of their problems.

Well I wouldn't get into the mindset that oil automatically equals bad. What about more production to ease current prices as a temporary solution (at least to keep it from climbing any further) while more money is funneled from the defense budget into alternative energies?

Originally posted by HimWhoHathAnEar
Please do feel free to drop that video link in any thread you want to. Make it your own. People need to understand what's happening.

Hey I already did dont mind if I do I like it because its only 2 min and any of our ADD sheeple we have on the site can site down and watch a 2 min video.

reply to post by Scramjet76

originally posted by Scramjet76
What about more production to ease current prices as a temporary solution....

Good question SJ-76...actually on topic market stress related to oil production...oil demand.

Whether some-one ascribes to the peak-oil-supply thesis...or not...peak-oil-production is gradually becoming a confirmed reality. My recommendation would be to plan accordingly.

Bear in mind that these production estimates by BP include biofuels. Ex-ethanol production...actual crude productivity began to lag global demand in 2005...as previously posted.

Global Crude Oil Production Dropped in 2007, BP Says

Crude oil production dropped 0.2 percent to 81.533 million barrels a day last year....

Global oil consumption rose 1.1 percent to 85.22 million barrels a day last year.... Full Text

In the first 5 months of 08, China alone has experienced a 17.41% increase in the sales of new cars. This new middle-class will be purchasing a total of 10MM new units by the end of the year. I think it's safe to conclude that any demand destruction witnessed in the faltering West...will be greedily mopped-up by the East.

With much of the world paying considerably more for fuel denominated in US Dollars...one has to question how $4 gasoline can crush the budgets of so many American consumers.

It's because we're used to a higher standard of living you say? Then please...question the integrity of the structure supporting that standard.

Oil: A finite resource.

How the New Oil Crisis Affects You