Posted on 09/29/2004 5:59:02 AM PDT by Homo_homini_lupus
Minister of Petroleum and Minerals Ali Al-Naimi issued a statement today that Saudi Arabia will raise its oil production capacity to 11 million barrels per day (bpd), a rise of 1.5 million bpd, by intensifying well drilling in the producing fields of Abu Sa'fah and Qatif. The bulk of this is light Arab crude. He reaffirmed that Saudi Arabia is fully prepared and well equipped to meet the requirements of its customers for any additional quantities of oil, and ready and capable of making up for production shortfalls occurring anywhere in the world. The Kingdom, he said, closely monitors developments in the international petroleum market, such as the fact that West Texas crossed the $50 mark, and as always seeks to curb any escalation of prices that could be detrimental to the growth of the global economy and that of developing countries.
So... They continue to increase production, while selling us less and less. Which means the oil is going to... China?
Ping!
You think the Saudis want Kerry to win?
Raising oil prices? I know it's not as simple as they don't need the money.
Maybe it is that simple?
They should eat the difference and write it off on the defense of their country. That is what the United States is to them. Don't they know?
It really doesn't matter where it goes - as long as the supply increases faster than the demand, the price should drop.
I'm sure there are some oil men here on FR somewhere...
BTW Where did you see a decrease in volume sales to the US?
Starting 13 lines down you can see the numbers... although that doesn't have 2004 numbers posted yet I am sure we can find YTD numbers if you want...
The Saudis make these announcements just like clockwork shortly after Greenspan raises interest rates. (Higher interest rates strengthen the dollar, which gives the Saudis more buying power for their oil money.)
Raising oil prices? I know it's not as simple as they don't need the money.
Actually they do need the money. The Saudi governemnt is heavily in debt.
I think the reality is is that they are open to the max and can't produce any more. Their major oil fields should be reaching or passing peak and heading quickly down. Sea water for preasurization will take its toll too.
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