Posted on 07/04/2018 9:11:47 PM PDT by BlackVeil
Trump’s tweet over the weekend that Saudi Arabia agreed to add 2 million barrels per day (mb/d) of supply confused the oil markets, pushing prices down a bit on Monday. Most analysts dismissed the statement, concluding that Trump was confused when the Saudis told him they have 2 mb/d of spare capacity, and not that they had planned to bring that capacity online.
A few days on from that episode, however, it actually doesn’t look that black and white. ...
(Excerpt) Read more at oilprice.com ...
Trump breaks OPEC. Imagine that.
Getting the Saudis to put some heat on Iran is a short term win for the US.
Oil Price needs to be excerpted?
I’m not sure. I do that by habit, with all sites.
Fracking OPEC sounds like fun.
FredSandford.jpg
LizzaBETH!
Yep!
Whatever happens, I think that the price of oil will go higher. That is because of inflation - which is going to take off. (I have been saying that for years ... but, I cling on to my prediction.) OPEC, in my view, is finished, because the the rift between Saudi Arabia and everyone else.
This excerpting is such a pain.
We need a group of freepers whose task is to re-write news articles for posting.
It’s all crap as it is legal to post under fair use laws...
Damned LA Times caused this mess...lawfare
I hope it does go higher. Anyone with a knowledge of what’s been going on with oil sales understands this has nothing to do with a marketable product sales. It is there to keep countries unable to grow anything except dope to gather funds to purchase food to feed their people. We don’t have to buy foreign oil to survive.
Today, the U.S. actually gets most of its imported oil from Canada and Latin America. And many Americans might be surprised to learn that the U.S. now imports roughly the same amount of oil from Africa as it does from the Persian Gulf.
Still others would be shocked that America is one of the world’s largest oil producers, and close to 40 percent of U.S. oil needs are met at home.
Most of the imports currently come from five countries: Canada, Saudi Arabia, Mexico, Venezuela and Nigeria. Saudi Arabia and Nigeria are receiving sales due to the oil for food program at around 3% each of our intake. Canada gets around 15% and the Latin America countries like Venezuela and Mexico are getting over 19% combined. The rest is spread between all the other countries we buy from to help them financially.
In 1998, the U.S. Geological Survey (USGS) examined ANWR’s coastal plain, specifically Area 1002, to estimate the amount of technically recoverable oil. Based on the geology, the USGS projected that there could be as much as 16 billion barrels of oil just in the coastal section tested alone that covers 1.5 million acres. That means there is still almost 18 million acres still untouch by oil drilling. This section is what is used to supply for that 8% of the reserve oil we are currently pipe lining down. But a vast majority of it is stopped in Valdez, and sold to Japan so they can refine it and sell it back to us at a loss so they can keep the economy’s head above water.
We aren’t even starting to go after that area. If we did, and expanded the pipe line from Canada to the south along with developing the Florida coast and the Rockies, we could tell them all to go fly a kite. But if we did, they would starve to death and have to go looking next door for food. Then we get to play war again. It’s a trade off, not a market.
rwood
Saudi will do exactly what we want them to do so long as it is done outside of the public view, saving face is very important in the Middle East.
Saidi is scared Sh—less of Iran and with good cause. If one looks at the population of Iran and Saudi and the ability to put great numbers of men in combat, Iran wins. If Iran becomes nuclear it is game over unless Saudi is also nuclear or defended by our military and its nuclear ability.
Without our military support and access to our military weapons they would cease to exist and that is not good for Saudi nor the USA.
As an aside I must comment that oil prices today are just right. At the present price shale oil fracking is very commercial and our production rates increase month by month.
The Saudis tried to kill our shale oil fields some years ago by producing huge amounts of oil and driving the price down. This did bankrupt many but that oil was still in the ground.
We came back leaner and meaner and now produce record amounts of oil at much lower production costs. Those leases that went bankrupt were bought at a bargain price and are now being drilled and producing. Capitalism works!
Saudi has state capitalism and thus failed in their efforts to kill shale oil in the USA. A state directed effort can never compete with free capitalism.
This is Baloney, its American Companies screwing Americans.
[Just doubled the world's known reserves of oil from 1 Trillion to 2 Trillion barrels]
Excellent Smithers.
‘And the Green River (untapped) formation...weighs in (no pun intended) at 3Trillion barrels.....with 1Trillion barrels recoverable with today’s (fracking) technology.“
The Green River oil shale does not respond to today’s fracking technology. You are confusing shale oil with oil shale. The oil shale of the Green River Formation does not in fact contain oil but contains kerogen which must be converted to oil using immense amounts of heat. Usually it has to be mined rather than drilled for. The economics for it do this just don’t work.
http://bakken.com/news/id/225072/untapped-story-behind-green-river-shale-formation/
Shale oil is crude oil found in other formations such as the Bakken that can be recovered using horizontal drilling and fracking technology.
Bookmark
I dont think this has anything to do with OPEC or Trump per se, it has to do with their hatred of Iran and U.S. military strength. Crippling Iran could save them a war they don’t want. That said Trump certainly deserves credit for pushing the right buttons at the right time. MAGA!
save for later
“...concluding that Trump was confused when the Saudis told him...”
Prez Trump does not get confused, he is usually 3 steps ahead.
The day the Saudis drop the petro-dollar will be a game changer for the US economy.
Something that *could* take years (decades?) to recover from.
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