Peak Oil - Production v Price FAIL, Saudi Arabia will increase production FAIL

One commenter suggested that world crude oil production was NOT an indicator for peak oil. The suggestion was that oil producers were holding back production to drive up price and that price was the driver behind production. But a graph of oil price v production does not offer us a correlation.

Another commenter suggested that Saudi Arabia had recently announced their intention to increase production even though price was low. Saudi Arabia has repeatedly indicated that it would increase production IF there was sufficient demand. In 2008 with prices at all-time highs, they did not increase production significantly and with oil prices again nearing $80 they are at a 5-year low in production.

The Saudis indicate that they will increase production to 14.5 Mbpd, but their peak production was 11.1 Mbpd in 2005. Every indication is that the only way to increase production is to sell sour oil.

OPEC has announced that they will increase production IF price goes over $100. I'm imagining that $100 will come and go without any significant increase in production.

Category:

People & Blogs

Tags:

• peak
• oil
• sour
• crude
• saudi
• arabia
• opec
• price

[zthustra]

DecentralizedByGuild got frustrated with my persistance replies. He has unfriended me, unsubscribed me and blocked me. He also removed all of his own comments and replies. I'm ok with that.

When I first replied to him, I really thought he was a "smart person" and said so. He proved me wrong.

I left my replies up because I think we all get frustrated by deniers. I'm sorry that I frustrated him so. His replies got very ugly in the end. I wish I was a better communicator.

[sangolt88]

Saudi is already running at max. 

[zthustra]

DBG asserted that Kuwait had once been a part of Iraq. He also asserted that they had been under US rule.

[zthustra]

Ooops, Kuwait was pulling up oil from under Iraq, not Iran.

The allegation was that the wells, which literally sat right on the border were drilled at angles and went across the border.

If you didn't catch it then, you will not find anything about it now. I'm fairly certain this was an issue that went to world court and the US/Kuwait oil companies just thumbed their nose at the world court opinion.

If somebody knows more, please post a reply.

[zthustra]

You probably didn't notice this, but I'm not posting comments on your channel, you are posting them on mine.

You also might not have noticed but I'm not the one resorting to ad hominen attacks with profanity, you are.

The best way to be left alone is to simply stop posting comments and replies to my channel.

You might even want to unsubscribe and block me. All those techniques work.

I would rather see you take the time to do some real reasearch.

[zthustra]

California, Los Angeles Basin, Onshore has proved reserves of 188 million barrels. Compare that with a state like Kansas' 243 million barrels or Colorado's 288 million barrels.

Whenever someone gets excited about southern California's NEW untapped reserves of oil, it always turns out to be the promise of technology that will exploit extra heavy oit, tar. But that technology doesn't exist.