Posted on 05/13/2015 11:50:03 AM PDT by Opintel
Saudi Arabia continues to ratchet up production, taking market share away from U.S. shale producers.
According to OPEC’s latest monthly oil report, Saudi Arabia boosted its oil output to 10.31 million barrels per day in April, a slight increase over the previous month’s total of 10.29 million barrels. That was enough for the de facto OPEC leader to claim its highest oil production level in more than three decades.
Saudi Arabia has increased production by 700,000 barrels per day since the fourth quarter of 2014 in an effort maintain market share. The resulting crash in oil prices is forcing some production out of the market, and Saudi Arabia intends for the brunt of that to be borne by others.
(Excerpt) Read more at oilprice.com ...
Ping.
Are there any U.S. oil companies in Saudi Arabia? If so, why? They are working against the interests of our country and should be shunned.
While sitting at an intersection in Houston suburb yesterday waiting for light to change watched gas go up from 2.29 to 2.39. Thought my old eyes were playing tricks on me but guy in car next to mine stuck his head out the window and yelled, “Did you see that?”
OPEC with their increases caused this by escalating the price of oil to where it became financially profitable for the United States to extract oil from shale. It’s their fault.
And shale companies being leveraged out the wazoo had nothing to do with it...
In our part of Kalifornia we’re over $3.50....we had about two weeks of sub-3, but that disappeared.
The Saudis aren’t doing enough. WTI crude is way up around $60. It needs to be down around $40 or less for a long, indefinite period.
Aramco was first formed from Standard Oil of California. Other companies bought into the oil fields in Saudi. In 1973, the Saudi Arabian government acquired a 25% stake in Aramco. It increased its shareholding to 60% by 1974, and finally took full control of Aramco by 1980, by acquiring a 100% percent stake in the company.
The oil production in Saudi Arabia is only by Saudi Aramco. There are some joint ventures within the country, but I do not believe they are oil production.
It is strange to read the FReepers who think it is in the US interest for OPEC to act as a cartel, manipulating the market and force prices higher by restricting supply.
Last November, most of the OPEC members wanted to do just that. But it requires a unanimous vote, KSA and a couple other refused to cut the supply.
Just breached $3 in Nevada for 87 octane ($3.09). Back during the crash a few months ago, it was $1.59, so in that little time it has just about doubled. Before the crash it was $2.89.
Noticed that diesel, which used to be 50c a gallon more than 87 octane, is now 50c under.
Any projections in the industry showing how many years of that level of production the Saudis could have left? At some point they have to hit a steep decline.
“At some point they have to hit a steep decline.”
I have mixed feelings, but if I look on the bright side, we’ll be using our own oil 50-100 years from now when lots of others have used theirs up.
That, like all the rest of us, would be hugely based upon price and future technology, along with competition from other sources.
I don’t expect significant changes in the next couple decades, because I expect demand to be large enough to keep prices high enough...
Saudi has spent significant money on production of quite expensive heavy oil to keep up their production rates. If they had an abundance of the cheap stuff, I don’t think they would do that.
Isn't it a fungible product, so they're simply pumping oil and as soon as the price rises shale production will increase again?
I view it as hyperbole from the author.
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