Seeking Alpha

Freddy Hutter, ...'s  Instablog

Freddy Hutter, TrendLines Research
Send Message
As a data analyst, Freddy Hutter of Trendlines Research provides guidance in chart format on the specialties of peak oil, realty bubbles, baseline GDP projections and election predictions. Virtually each day an update is published to the website's MemberVenue. All charts are made publicly... More
My company:
Trendlines Research
My blog:
TrendLines Chart Blog
  • Saudi Arabia Crude Oil Targets Vs Capacity 0 comments
    Apr 15, 2012 3:25 PM

    (click to enlarge)click to enlarge ... more peak oil charts at my SA Instablog & website

    Saudi Arabia MSC & Supply Outlook ... an update

    March 31 2012 delayed FreeVenue public release of Dec 31st MemberVenue guidance ~ Guidance from the Kingdom and/or Saudi Aramco with respect to MegaProjects & Surplus Capacity has been limited to fine-tuning over the past three years. OPEC mandated quota restrictions had kept Supply below national targets in 2008, 2009 & 2010, but geopolitical issues surrounding Libya & Iran drew KSA from its reluctant role as swing producer. Saudi Arabia set new monthly/quarterly/annual production records in 2011.

    In 2009 I predicted that year would prove to be the Kingdom's Peak Year for Maximum Sustainable Capacity (NYSEARCA:MSC). Today it appears the 12.5-Mbd high will be unchallenged and high idle capacity (2.0-Mbd) continues to hide this milestone event. Last week's URR Linearization update re-confirms the Kingdom appears to be inflating their total resource base. In 2009 I revealed their claim of 900-Gb was more like 212-Gb. Nothing has changed.

    All the announced MegaProjects are still underway. Due to the subdued Demand growth since the Great Recession, final commissioning of Manifa will be stretched out to 2014. The preservation of Surplus Capacity reconciled with new construction indicates the Underlying Decline Rate Observed (UDRO) for regular conventional oil has climbed from 2.5% to to 3.6% per annum over the past two years. RCO extraction should remain above 8.0-Mbd 'til 2021.

    (click to enlarge)

    Update of legacy Saudi Arabia Crude Production Forecasts by Husseini & theOilDrum

    Here's my annual look-see at how the legacy predictions by Sadad al Husseini and theOilDrum's Stuart Staniford & Ace (Joker) have performed against facts on the ground. Admittedly, all efforts have been stymied to some degree by OPEC mandated quota restrictions. This is exactly why it was decided back in Feb/2009 to depict my Peak Scenario-2500's as Maximum Sustainable Capacity ... not Production.

    The PS-2500 continues to project 2009 as Peak Year for MSC. The Kingdom's 3.6% Underlying Decline Rate Observed (UDRO) for regular conventional oil makes it almost impossible for any future announced megaprojects to have sufficient magnitude necessary to breach 2009's 12.5-Mbd high. Based on last week's Linearization update, my estimate of KSA URR nudges up slightly to 211-Gb.

    The Husseini Outlook takes a similar view with its production high (2023) of only 11-Mbd. The Ace (joker?) over @ TOD forecasts extraction going south after 2011. Meanwhile, the infamous high-case worst-case scenarios by theOilDrum's Stuart Staniford continue to be emblematic of the agenda-driven rhetoric, fabrication of data, misinformation and mass hysteria at that place. Since 2002, McPeakster websites & pundits have been the best thing to ever have come along for oil sector shareholders & NOCs since the invention of the automobile. The dozens of alarmist "news feeds" disseminated by McPeaksters each week contribute directly to the bottom line of Producers via windfall profits.

    original article

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Freddy Hutter, TrendLines Research's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.