misterno wrote:Maybe they wanted price to go up so they did not produce more
Alfred Tennyson wrote:We are not now that strength which in old days
Moved earth and heaven, that which we are, we are;
One equal temper of heroic hearts,
Made weak by time and fate, but strong in will
To strive, to seek, to find, and not to yield.
Tanada wrote:misterno wrote:Maybe they wanted price to go up so they did not produce more
Because of what the oil shocks of 73 and 79 especially did to the world economy OPEC has had a policy from then till now of keeping the price from going too high and crashing the world economy. The fact that prices went to $147/bbl indicates they have lost control of prices, and the fact that after $147/bbl it fell to $35/bbl argues the same thing. They don't want it too cheap, or too expensive. Too low and they are giving away their future, too high and they crash the economy and can't sell as much.
Schmuto wrote:If oil is selling for 200 dollars a barrel, and the KSA has doubled the life expectancy of its oil production capacity, then they, essentially, doubled the length of time during which they can make the same amount of money.
The reason they haven't done so must be a lack of internal discipline or external influence.
OilFinder2 wrote:[lots of crap]
Schmuto wrote:OPEC stood to make SEVEN times the money, at least SIX times of which was profit, for every extra barrel they pumped during the run up.
They pumped - about none extra.
Opec oil production broke a seven-month downward trend in April, rising by 270,000 b/d to 28.2m b/d, according to the IEA.
Schmuto wrote:If oil is selling for 200 dollars a barrel,
Schmuto wrote:This is an important point.
I've read arguments that, when prices started ramping up in 07, OPEC was able to ramp up production but that the time required to ramp up production prevented them from doing so before the price dropped off.
I call nonsense on that.
AAA wrote:Schmuto wrote:This is an important point.
I've read arguments that, when prices started ramping up in 07, OPEC was able to ramp up production but that the time required to ramp up production prevented them from doing so before the price dropped off.
I call nonsense on that.
Do you understand what it means to "ramp up production"? Do you work in the oil industry?
I think every PO.com member should read a basic book about petroleum exploration and production.
Ramping up production does take years and for major projects it takes decades. How long did it take Thunderhorse to get completed from the initial idea to first production? More than 18 months my friend.
And, if you can't raise production over a 3 year period when prices spike to all time highs, then, it seems manifest, you really don't have a 'reserve' capacity at all. What you have is good intentions.
Schmuto wrote:
Answer to angry one, above, and The Troll:
Troll - The graph was posted already - from June 05 until today OPEC has only increased production one time, and then only by a paltry 1/2 of 1 percent. They have decreased production in that same time period by a cumulative amount of about 6%.
So I say it again, despite its obvious nature:
If they had 3 years from 05 to the peak price in mid 08 to increase production and cash in on high oil prices, and they did not, the only reasonable conclusion I can draw is that - they could not increase production.
You, and others, keep repeating, "it's a "ramp up" and it can't be done all at once.
Apparently, it can't be done at all over a 3 year period.
And, if you can't raise production over a 3 year period when prices spike to all time highs, then, it seems manifest, you really don't have a 'reserve' capacity at all. What you have is good intentions.
And the road to post-peak oil hell is paved knee-deep in good intentions.
Schmuto wrote:Troll - The graph was posted already - from June 05 until today OPEC has only increased production one time, and then only by a paltry 1/2 of 1 percent.
Schmuto wrote:They have decreased production in that same time period by a cumulative amount of about 6%.
Schmuto wrote:If they had 3 years from 05 to the peak price in mid 08 to increase production and cash in on high oil prices, and they did not,
Schmuto wrote:the only reasonable conclusion I can draw is that - they could not increase production.
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