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Libya unrest forces IEA oil draw down

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posted on Jun, 23 2011 @ 10:34 PM

PARIS (AFP) – The developed countries took the near unprecedented step Thursday of drawing down their oil reserves to make good the loss of Libyan supply, aiming to keep prices in check ahead of peak demand.

The United States, the world's largest oil consuming nation, took the lead, saying it would would release 30 million barrels from its stocks, which at 727 million barrels, were at a historic high.

The International Energy Agency said meanwhile that 60 million barrels would be taken from reserves over the next month to cover lost Libyan output, only the third time the 28-member group has taken such a step.

Ive never heard of this before, so I can only guess what it means. Are the governments just giving out the oil for free, or are there strings attached? Will this mean prices will rise later on or will they continue to drop?

This part also caught my eye.

The United States, the world's largest oil consuming nation, took the lead, saying it would would release 30 million barrels from its stocks, which at 727 million barrels, were at a historic high.

Does this mean the government has been holding on to all these barrels while the gas prices were at their highest months ago? Now that the price is going down, they decide to release some of the oil?

posted on Jun, 23 2011 @ 10:52 PM
reply to post by buni11687

No. It means There is a faction trying to make major changes in the way the world is run. First, "they", probably hired goons of some rich burocrat decided to mess with BP so that the western powers could be allied. Not the general public, of course, but those invested in BP and those in the know about the dollar and how it operates.

Thats what the oil spill was for. That was intentional. They knew it would happen when they started building the place. There are also some easily duped people in La as well as a few military bases where people have already succumbed to government brainwashing and they don't even know it.

These same people didn't just threaten BP, they are also probably the same ones who put that fancy ecoli out. Which is almost as obvious a conspiracy as the oil for reasons that are off topic.

The government has been sitting on oil reserves for years, to answer your question. Its also a scare tactic like so many others. The American public needs to feel it is necessary for the govt to take whatever actions they are going to take next. Kind of like with the govt going broke and not being able to pay for things for a while.

Its all manufactured controlled drama so they can do whatever they want.

Yes, they have plenty of oil reserves they have been sitting on for ever.
edit on 23-6-2011 by siren8 because: (no reason given)

posted on Jun, 23 2011 @ 10:56 PM
So 90,000,000 barrels? That'll fuel America for a whole 4 days!

posted on Jun, 23 2011 @ 11:04 PM
reply to post by BlackStar99

thats $9,000,000,000.USD at aprox 100 usd a barrel isn't it?
thay aint selling it out for the good of the peeps
the government(s) is/are BROKE

edit on 23-6-2011 by Danbones because: (no reason given)

edit on 23-6-2011 by Danbones because: (no reason given)

posted on Jun, 23 2011 @ 11:38 PM
It is our "emergency reserve" and this action will set very ill with many folks.

The Military runs on Petrol, like people breath air and drink water ... They cannot function without it, and the pentagon is likely crying in their soup right now!!
Jets in particular ... imagine ... no air ability? ... Drones even? ....
So, you can imagine the paranoid in the military are possibly now freaked. Not good, that is not good.

30,000,000 barrels -- to keep America running, and the military humming, and the Oil Producing Nations from collecting oodles of cash at a high rate of speed! --- ---

The Arab Spring should bring out a technological spring in all oil dependent countries!!
One would hope!!!

According to some of the Truckers, there are many more Military Convoys and Fema Convoys on the roads these days, and FEMA is all up over the potential of ELENIN disasters (the IF and the what IF) .. and they are rushing last minute supplies (Sept 11, 2011 is ostensibly the first day to worry about, but you will see it in August in the sky) ... and tanks, and all sorts of other things all over the place .... in huge convoys? .. or medium ones .. Gee, I don't know what would be huge. Four miles long seems pretty big.

Very inconvenient to run out of gasoline in such times, and the news said it might continue for 3 more months .. and the price of gas would go down about 30cents per gallon! .. Whee, my fill up will cost me $4.50 less in July!

All in all, I hope for the Technological Spring to answer the problem, and put us all on a better path, to an future without petrol in our vehicles!!

posted on Jun, 24 2011 @ 02:11 AM
2 days into the Libya unrest Saudi Arabia covered output costs of Libya through increases in their own production.

That was way back in February.

So all I have to say to this massive world wide effort to do ... well ... what exactly? What are they trying to do, tell us, show us, show somebody .. while this hand moves, what's going on with the other hand because their excuses are complete BS..

A source told Reuters that the Saudi state oil company increased its production to more than 9m barrels per day – a rise of more than 700,000 barrels.

Libya lost 1.2million/b a day production, Saudi is covering 700k of that

It is in this context that the world turns to OPEC, which has stated that it has enough oil in reserve to stabilize deliveries, and looks to see a compensating production increase from those nations with that potential. And here is the rub, for some OPEC countries are themselves in a little political difficulty which might negatively impact their own production, while those that can, in the short term, increase flow volumes to match the shortfall are likely all called Saudi Arabia. Read more:

OPEC is covering the rest (mostly with their own massive reserves)

Then there is another conundrum of logic: The USA is releasing the majority of the "Western World Oil Reserves" of 30m barrels into the US market...


Libya produces 2% of the World's oil, almost all of it goes to Italy, Ireland and France.

Our own producers and importers are seeing no shortages or issues with delivery .. Canada, Venezuela, the US, and Saudi Arabia our biggest suppliers are all doing fine.

I know the World prices can still increase because of Italy, Ireland and Frances issues .. BUT ..

Oil prices peaked 2 months ago .. where was the "emergency" to release millions of barrels of oil into the market then?

So I ask .. WTF is going on?

They said that Kuwait, the UAE and Nigeria were to ramp up their production by as much as 300,000 barrels a day in coming weeks. Riyadh has raised its output by about 700,000 b/d.

A total of 1.7 million barrels to cover a deficit of 1.2 million barrels not including production increases from Venezuela and Iran ..

IEA figures show that Saudi Arabia has 3.5m barrels a day of spare capacity, while the United Arab Emirates could add 330,000 barrels, Qatar could put on 180,000, and Kuwait 230,000. While not all of this would be likely to come on stream at once, Middle East production is still 1.7m barrels per day lower than it was at the height oil price spike in mid-2008

edit on 6/24/2011 by Rockpuck because: (no reason given)

Of course then they refused...

"We are unable to reach consensus to raise our production," OPEC Secretary General Abdullah al-Badri told reporters. An emergency meeting on raising the levels could be convened within three months if warranted.

Even though they already did. If it is a vote to raise output further ... it's simply not necessary, the World has all the oil it needs. If the World wants to combat high oil prices... take a look at the banksters.
edit on 6/24/2011 by Rockpuck because: (no reason given)

posted on Jun, 24 2011 @ 02:40 AM
reply to post by Rockpuck

I found it interesting (if you can call it interesting) that the noises coming from some OPEC members seems to run along the lines of the IEA using oil as a weapon and that there may be a retailitory response!.

Perhaps the draw down was designed to get a retaliatory response from some OPEC members?

Tho I doubt the average person will see such a move (restrict production to maintain price levels) as a retaliatory response but rather I suspect it'll be spun into seeming like an unprovoked attack..

To many worrisome doors being opened for my liking at the moment..

posted on Jun, 24 2011 @ 03:26 AM
reply to post by thoughtsfull

I don't know, none of it makes sense to me. If OPEC already increased production, and no one is seeing a shortage why ask them to increase production again? And if they refuse, why would you release 30 days worth of production and call it a major feat?

Made even more bizarre by the fact the West claims to be doing this to "keep prices low" but failed to do so when prices were at their highest in May and oil is continuously declining so far this summer. And how much does 30 million barrels REALLY effect the cost of oil? The US consumes that in 2 days.. out entire reserve would only last us 50 days.

"To put it in perspective, the 30 million barrels of oil that the U.S. plans to contribute is the equivalent of seven and one-half days of oil production that we are projected to lose in the Gulf of Mexico as a result of the federal drilling moratorium and the government's inability to permit ongoing and future projects in the Gulf region," Don Briggs, president of the Louisiana Oil and Gas Association, said in a news release.

The move comes as retail gasoline prices dropped for the 20th consecutive day, down a penny from Wednesday, to a national average of $3.61 per gallon, according to the AAA Daily Fuel Gauge Report.

If only we could see behind the curtain!

posted on Jun, 24 2011 @ 05:15 AM
reply to post by Rockpuck

I too, really wish I could see behind the curtain as this moves makes very little sense..

Is it to prod a response? Is it to buy votes? which seem like very weak answers..

Instead of stability it seems (to me) to have only created more uncertainty..

Perhaps that was the ploy?

It is a very strange move indeed... one I feel may be of great significance.
edit on 24/6/11 by thoughtsfull because: (no reason given)

posted on Jun, 24 2011 @ 05:19 AM
I heard Lindsey Williams saying this last week.

They arab states are shutting off oil supply to the west. And the US wil go drilling in Alaska 8mile deep. They are already there, according to Williams
edit on 24-6-2011 by TribeOfManyColours because: (no reason given)

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