OPEC: Demand outstrips OPEC supply

San Francisco Chronicle ^ | June 10, 2011 | Staff

[NRG1973]

An OPEC report suggests that world demand for its oil is outstripping the present supply.

The monthly demand forecast from the Organization of The Petroleum Exporting Countries says estimated OPEC crude production last month averaged 28.97 million barrels a day. It also says that demand this year for OPEC oil is expected to average a daily 29.9 million barrels.

The report was published Friday, two days after an OPEC meeting ended in disarray, with Saudi Arabia and other Gulf members unable to push through demands to lift production ceilings. OPEC members opposed were led by Iran.

World oil demand is expected to outpace supplies later this year by the widest margin since 2007. The Saudis and their allies are likely to increase exports on their own to meet the shortfall, following the deadlock at Wednesday's meeting.

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2011/06/10/financial/f045852D47.DTL#ixzz1Oz6M7ycv

[NRG1973]

This report comes from OPEC so I don't know how serious to take it. Nonetheless if any group can ensure tight supplies of crude oil its OPEC.

[FlingWingFlyer]

It’s a shame America doesn’t want a piece of this action. We could straighten out our economy in a heartbeat. Drill baby, drill!

[Radio Free American?]

And China is more then willing to make deals with OPEC on its supply.

We are behind the curve in this situation and should have opened up domestic oil production years ago.

Our President sees fit to shut down or reduce our production and increase it in other countries such as Brazil. Even with the help of our tax dollars. After all, were eager to be potential buyers of their oil or something to that effect.

Either way were at the mercy of some foreign government, and none seem to be very friendly towards the United States or have our best interests at heart.

[WellyP]

Something is backwards, besides Muzzies in general.

Iran, Venezuela and the hard line states want O’bumma reelected because they see him as a useless POS with stupid ideas. They know he can be played over and over again. They are scared to death that a right wind Conservative gets elected and spoils their fun. The hardline states should be for LOWER oil prices to help keep Bumma in power.

Saudi Arabia and other Gulf members should be pushing for HIGHER prices to drive O’bumma out of office and see the election of a much more Conservative President in their best security interests.

[HiTech RedNeck]

OPEC countries have so many easily drillable oil pockets that they haven’t had to even think of alternative sources such as shale and alternative methods such as fracking. Put those in the mix and everybody will have enough oil for maybe millennia.

[RayChuang88]

Baloney.

That's because many of the OPEC countries haven't tried to use modern oil extraction methods such as CO2/steam injection, special liquid detergent injection or the new method called fractional cracking. If they were use these methods the amount of recoverable oil in the OPEC countris could possibly triple--and that's without drilling one new well!

Also, don't forget that due to the unstable political situation in Iran and Iraq, the gigantic oilfields in both countries are WAY underutilized. In short, we have a oil supply constraint caused by political considerations, not technical constraints.