Saudi Arabia Will Continue To Flood OIl Market

tay

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May 20, 2012
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Top oil exporter Saudi Arabia won't change its current reliable production policy and is ready to meet any additional demand from its customers, the kingdom's oil minister Ali al-Naimi said Wednesday.

We will satisfy the demand of our customers. We no longer limit production. If there is demand, we will respond. We have the capacity to respond to demand,” he said.

Oil futures were sharply lower Wednesday, with West Texas Intermediate crude on the New York Mercantile Exchange CLG6, +1.28% down 97 cents, or 2.6%, at $36.90 a barrel, while February Brent crude LCOG6, +3.13% on London’s ICE Exchange fell 80 cents, or 2.1%, to $36.98 a barrel.

Saudi Arabia says it’s ready to meet any additional oil demand - MarketWatch
 

Curious Cdn

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Feb 22, 2015
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The sooner that they run out of oil, the sooner the world gets to ignore those malignant savages again. Pump away, Mufti.
 

damngrumpy

Executive Branch Member
Mar 16, 2005
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So we have the cheap oil from the Arab States destroying our oil companies
in the western world. Yet both the oil companies that are agents for this oil
coming in and the governments who benefit from the taxes our oil provides
for social programs will do the following.
1 close our facilities and buy foreign oil and ship it here at the expense of jobs
2 they will cut programs and see people unemployed while they support one of
the biggest state sponsored terror groups in the world.
3 We will all be better of with cheaper oil even when it is bad for our economy.

No the Arab world is not responsible for our problem. The companies that profit
both ways, our governments, and ourselves for not flooding communications with
demand for change.
 

Curious Cdn

Hall of Fame Member
Feb 22, 2015
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So we have the cheap oil from the Arab States destroying our oil companies
in the western world. Yet both the oil companies that are agents for this oil
coming in and the governments who benefit from the taxes our oil provides
for social programs will do the following.
1 close our facilities and buy foreign oil and ship it here at the expense of jobs
2 they will cut programs and see people unemployed while they support one of
the biggest state sponsored terror groups in the world.
3 We will all be better of with cheaper oil even when it is bad for our economy.

No the Arab world is not responsible for our problem. The companies that profit
both ways, our governments, and ourselves for not flooding communications with
demand for change.
The oil will still be there and the longer that it stays in the ground and the less competing oil that there is, the more valuable it will be. The only problem is that it would require us to leave something for our grandchildren, rather thasn scorched, empty earth.
 

Angstrom

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May 8, 2011
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Nope, I said this from the start.

This is the Arabs trying to starve out the competition.

Wrong. This is the United States reason they are allies with Saudi's. They are protecting the US Dollar against Russia and China and India who were attempting to move away from using US dollars as their world reserve currency for trades between countries by Using chines currency as their new reserves.

This would really hurt The USA and anyone else who has to gain from keeping to US dollar strong. Like the Saudi's who have trillions in reserves.
 

Retired_Can_Soldier

The End of the Dog is Coming!
Mar 19, 2006
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Wrong. This is the United States reason they are allies with Saudi's. They are protecting the US Dollar against Russia and China and India who were attempting to move away from using US dollars as their world reserve currency for trades between countries by Using chines currency as their new reserves.

This would really hurt The USA and anyone else who has to gain from keeping to US dollar strong. Like the Saudi's who have trillions in reserves.

The USA no longer has the same dependence it had on Saudi Oil. They are fracking the living crap put of everything that is frackable. They are estimated to be oil independent in as little as four years.

As a result of this, the Saudis began flooding the market with cheap oil which has continued to drive prices down.

So, yes, the USA plays part by fracking, which, when you think about it, because the President is supposed to be one of those environmentally conscious dudes.
 

Angstrom

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May 8, 2011
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The USA no longer has the same dependence it had on Saudi Oil. They are fracking the living crap put of everything that is frackable. They are estimated to be oil independent in as little as four years.

As a result of this, the Saudis began flooding the market with cheap oil which has continued to drive prices down.

So, yes, the USA plays part by fracking, which, when you think about it, because the President is supposed to be one of those environmentally conscious dudes.

That's not why Saudi's Did it. The don't give a crap if Canada and the USA pump oil as they use US dollars to sell it on the world market. Russia wasn't selling its oil for US dollars to China and India.
To protect trillions of US currency Saudi's own. They are trying to kill Russian oil companies. The rest of us are simply friendly casualties.

If the US dollar loses a lot of its value things could get nasty for us.
 

tay

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May 20, 2012
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How much output has the worst oil slump in decades halted? Just 0.1%, much of it in Canada


OPEC and major oil companies like BP Plc and Occidental Petroleum Corp. are betting that low oil prices will drive production down, eventually lifting prices. That’s taking longer than expected, in part due to the resilience of the U.S. shale industry and slumping currencies in oil-rich countries, which have lowered production costs in nations from Russia to Brazil.

Just 100,000 bpd out of the 96.1 million bpd of oil pumped worldwide have been closed so far since the price plunge, most of it in Canada’s oil sands, conventional U.S. projects and aging fields in Britain’s North Sea, according to the research.

The group’s analysis showed that 3.4 million bpd of oil pumped now, 3.5 per cent of worldwide production, is “cash negative” at Brent prices of $35 per barrel. Brent was trading at US$34.60 per barrel on Friday morning, meaning selling this oil currently costs more than it takes to get the barrels out of the ground.

But the hope of a rebound could keep even these from closing.

“Given the cost of restarting production, many producers will continue to take the loss in the hope of a rebound in prices,” said Robert Plummer, vice president of investment research at Wood Mackenzie.

The bulk of the most expensive to produce oil is in Canada, where 2.2 million bpd is “cash negative” at current prices, most of it in oil sands and small conventional wells. An additional 230,000 bpd in is Venezuela’s heavy oil fields, and 220,000 bpd is in the United Kingdom.

Those operators, Wood Mackenzie said, were likely to store their oil to sell later, only shutting fields if mechanical or maintenance problems required investments they “can’t rationalize” at current prices.

Oil production may still fall as companies stop investing and drilling new wells, letting output naturally decline. As oilfields age, production typically goes down by 5 percent to 10 percent a year. The new U.S. shale wells have steeper decline rates, so companies’ production drops faster if they don’t drill new wells.

Beyond natural decline and lack of new investment, the Wood Mackenzie report signals that production will remain resilient. “Being cash negative simply means that production costs are higher than the price received. It does not necessarily mean that production will be halted.”

How much output has the worst oil slump in decades halted? Just 0.1%, much of it in Canada | Financial Post