tag:blogger.com,1999:blog-5235419263414453422.post1700612182083984453..comments2024-02-23T01:30:06.101-08:00Comments on Early Warning: The Significance of the Al-Naimi Price CommentStuart Stanifordhttp://www.blogger.com/profile/07182839827506265860noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-5235419263414453422.post-74175468517651795312012-01-19T11:07:11.248-08:002012-01-19T11:07:11.248-08:00Unknown - interesting news indeed! My first insti...Unknown - interesting news indeed! My first instinct is it's unusual for JODI to be this up to date in posting stats - but I'll have to check my records to be sure one way or the other.Stuart Stanifordhttps://www.blogger.com/profile/07182839827506265860noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-18452217498736972192012-01-18T23:10:03.564-08:002012-01-18T23:10:03.564-08:00I acceptyour point KSA and a price drop. But dema...I acceptyour point KSA and a price drop. But demand can still fall. In china for example. And production outside KSA can grow.buck smithhttps://www.blogger.com/profile/10165817144159425547noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-6223003496913744362012-01-18T20:54:34.109-08:002012-01-18T20:54:34.109-08:00"I believe we can easily get up to 11.4, 11.8..."I believe we can easily get up to 11.4, 11.8 (million barrels a day) almost immediately, in a few days, because all we need is to turn valves," Saudi Oil Minister Ali al-Naimi told CNN's John Defterios.<br /><br />Hmmm, where does he say pump? All I see is "open valves"...like valves to storage tanks? Maybe the "next 700" is spare capacity? I of course realize that their storage is limited but his answer is technically not deceitful (although typically misleading) if they ramp up storage "production".Donhttps://www.blogger.com/profile/04998336790408278060noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-19559280182023958792012-01-18T18:12:13.900-08:002012-01-18T18:12:13.900-08:00"And I continue to wonder why, if Saudi Arabi..."And I continue to wonder why, if Saudi Arabia can just turn the valves to 11.8mbd, it was apparently not producing 10mbd when Mr al-Naimi said it would late last year."<br /><br />I do believe you spoke a bit too soon:<br /><br /><a href="http://www.businessweek.com/news/2012-01-18/saudi-arabia-s-november-oil-output-exports-rise-to-30-year-high.html" rel="nofollow">10.047 million barrels a day in November</a>Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-41661402115997662272012-01-18T11:34:56.255-08:002012-01-18T11:34:56.255-08:00I think they went even further in 2009 and called ...I think they went even further in 2009 and called 75 to 85 dollars a "target price range." After this time, of course, Brent went to $120, and the supposed 11.4 mbpd was nowhere to be seen. It's not like they have been drilling like crazy in the meantime, so it is thus not at all clear where the 11.4 mbpd would come from now.<br /><br />The sideways move in prices in 2011 in the face of increased production would seem to indicate higher prices ahead in 2012, especially if production cannot be increased further.<br /><br />Thanks, Stuart.Kenneth D. Worthhttps://www.blogger.com/profile/01273763648198044270noreply@blogger.comtag:blogger.com,1999:blog-5235419263414453422.post-5379869807354330072012-01-18T09:50:20.169-08:002012-01-18T09:50:20.169-08:00The irony is that by Saudi Arabia supporting price...The irony is that by Saudi Arabia supporting prices in this way, they're helping the world transition away from oil. Their actions help dampen longer-term price swings <i>and</i> keep prices high enough to force investment into alternatives and efficiency. Last year I kicked around the <a href="http://contraposition.org/blog/2011/07/05/tapping-our-oil/" rel="nofollow">idea</a> of using the SPR to dampen price swings, that wouldn't have worked all that well. Saudi Arabia is in a much better position to do it.barathhttps://www.blogger.com/profile/17985128800963474684noreply@blogger.com