pstarr wrote:The truth is apparent that there is no swing producer anymore Just decline.
seahorse3 wrote:A very important tipping point was reached last week when the IEA decided to release 60mb of oil to replace Libyan oil production taken off of the market due to their civil war. After OPEC and in particular SA refused to increase production to make up for the loss of the Libyan oil, the IEA stepped in. This was an important shift. It effectively means the IEA is now the world's swing oil producer and will have to intervene to calm oil price moves, not just pump oil in case of strategic emergencies, which was the original purpose of the IEA reserves of oil.
seahorse3 wrote:After a decade of rising oil prices, rising more than 10 fold sense 1999, and after repeated pledges by SA to increase production to stabilize world oil prices, it was apparent they can't and couldn't. SA produces less oil today in 2011 than it did in 2005. SA is no longer the swing producer. No one believes that anymore. That role has now shifted to the IEA What that means from here on out, who knows. But, it is an important tipping point politically, economically, and in the debate about PO.
pstarr wrote:Why is that good news?EnergyUnlimited wrote:pstarr wrote:The truth is apparent that there is no swing producer anymore Just decline.
At least we have some good news...
Pops wrote:Just found this,IEA Official Excuses FAQ
IEA collective action – June 23, 2011 - Frequently asked questions
... However it will take time for these incremental barrels to be produced and shipped to consuming markets; the use of IEA strategic stocks now will help bridge the gap until these new supplies are available.
... The use of IEA strategic stocks now will help bridge the gap until these new supplies are available.
babystrangeloop wrote:Half of the IEA oil is from the US. The US used to be a swing producer. What's so unusual about thinking it could be one again?
seahorse3 wrote:Just noting that this is the "admission" that SA isn't the swing producer everyone thought.
IEA makes 60 million barrels of oil available to market to offset Libyan disruption
Press releases / IEA / June 23, 2011
... the IEA warmly welcomes the announced intentions to increase production by major oil producing countries. As these production increases will inevitably take time and world economies are still recovering, the threat of a serious market tightening, particularly for some grades of oil, poses an immediate requirement for additional oil or products to be made available to the market. The IEA collective action is intended to complement expected increases in output by these producing countries, to help bridge the gap until sufficient additional oil from them reaches global markets. ...
seahorse3 wrote:Of course the IEA isn't a "producer". I didn't mean that literally. Just noting that this is the "admission" that SA isn't the swing producer everyone thought.
seahorse3 wrote:And, everyone on this board knows that SA produced more oil in 1980 than ever, but the world at large has a short memory; and this was a first for the IEA to step in and try to defend cheap oil.
kiwichick wrote:bsl; where do you get your rose coloured glasses?
John_A wrote:I don't think everyone on this board knows everything related to SA oil production
Saudi Aramco looks at restarting its first ever oilfield
Reuters / May 24, 2011
ALKHOBAR: Saudi Aramco will study drilling again at its long mothballed, first oilfield, industry sources said.
Dammam, now known as the “Prosperity Well,” is where the top crude exporter has made its first discovery in 1938.
Saudi Aramco’s chief executive Khalid Al-Falih has said the Number 7 well there produced 32 million barrels of oil before it was shut. The kingdom’s oldest field, Ghawar, has pumped more than 65 billion barrels since 1951.
“The well remains capable of producing even today, and the Dammam Field as a whole still accounts for half-a billion barrels of our proven reserves,” Al-Falih said.
Saudi Aramco had recoverable oil and condensate reserves of 260.1 billion barrels in 2009.
“There is a plan to drill trial wells, to try to assess the feasibility of the extended reach target,” one source said.
“It is challenging to drill an extended reach well.” ...
babystrangeloop wrote:Saudi Aramco looks at restarting its first ever oilfield
Reuters / May 24, 2011
ALKHOBAR: Saudi Aramco will study drilling again at its long mothballed, first oilfield, industry sources said. ..“There is a plan to drill trial wells, to try to assess the feasibility of the extended reach target,” one source said.
“It is challenging to drill an extended reach well.” ...
John_A wrote:You appear to be verifying my comment by cutting and pasting "internet" knowledge on an unrelated topic to the thread?
babystrangeloop wrote:But of course Thomson Reuters is the Internet.
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