michaelschn

Will the Saudis Increase Oil Production?

There is a huge difference between the statements: "Saudi Arabia will start pumping from its new 500,000 barrel-a-day Khursaniyah field within the next month..." and "...Saudis ... produce 10 million barrels a day next month".

1. 500kbrl/day is the maximum field capacity. If they only start pumping from it next month there is no way they can bring the output to the maximum that same month if ever. They also need to fill up all pipes and storage volumes before they can really output all oil they pump.

2. Many older fields there seam to be in terminal decline. By the time Khursaniyah starts flowing to export it will need to offset that decline as well. We do not know if it even will be able to do that. Even if it does the decline will go on, so this peak in production won't be sustainable.

3. Even if they add 500kbarrels a day it will be still sort of those 10mbarrels a day.

The Oil Scam Driving Crude Over $80

The article is all wrong. Oil prices don't change. It's $US going down. $US is worth less than 1/80 of a barrel today. It will go further down. It's been actively devalued. When they bailout housing bubble $US will quickly decline. The proposed Fanni Mae / Freddy Mac cup adjustment means devaluation of $US from 1/427000 of the top insured mortgage to 1/625000 of the same real thing. This is a value inflation of 46.3%. Price inflation of other real things must quickly catch up.

The Oil Scam Driving Crude Over $80

The article is all wrong. Oil prices don't change. It's $US going down. $US is worth less than 1/80 of a barrel today. It will go further down. It's been actively devalued. When they bailout housing bubble $US will quickly decline. The proposed Fanni Mae / Freddy Mac cup adjustment means devaluation of $US from 1/427000 of the top insured mortgage to 1/625000 of the same real thing. This is a value inflation of 46.3%. Price inflation of other real things must quickly catch up.