Global oil prices 'to stay high'

[lovuian]

http://news.bbc.co.uk/2/hi/business/4594526.stm

Opec member Indonesia has said it sees no need for the oil producing cartel to cut output because prices are expected to remain high into the spring.
The comments of its Mines and Energy Minister Purnomo Yusgiantoro came ahead of Opec's next meeting on 31 January.

The organisation decided against cutting output in December, but it fell anyway, primarily due to security worries hitting Iraqi exports.

Global oil prices surged 30% last year, on soaring demand and supply concerns.

more...

Well there you have it...Up Up UP!!!

[Erika]

1. Co-workers are worrying about how to meet those costs

and hoping they might be reduced to at least the cost level of when W and his corporate world oil buddies took over this country. The Bush corporate supporter portfolios have never looked better as they stick it to working Americans.

[lovuian]

2. Your not kidding the US is getting a Oil Shock... and Bush

helped... Opec has wanted Saddam out for sometime and Bush did it for them with our money and our children ... Now we pay more...

Its such a crime...

[cliss]

3. We're on the same

wave length. I STRONGLY Believe oil is going to go up. Way up.

A few months ago, my boss said, "See? I dolt you oil prices were going to come down. You were wrong." This was after gas prices went through the roof, about 6 months ago.

He feels that everything's fine now.

Just wait until the oil field in Kuwait starts to run dry. I've read that it's very close to happening. And when that does happen......through the roof.

[hatrack]

5. Burgan isn't running dry - but it has peaked - as of early last November

The peak output of the Burgan oil field will now be around 1.7 million barrels per day, and not the two million barrels per day forecast for the rest of the field's 30 to 40 years of life, Chairman Farouk Al Zanki told Bloomberg.

He said that engineers had tried to maintain 1.9 million barrels per day but that 1.7 million is the optimum rate. Kuwait will now spend some $3 billion a year for the next year to boost output and exports from other fields.

However, it is surely a landmark moment when the world's second largest oil field begins to run dry. For Burgan has been pumping oil for almost 60 years and accounts for more than half of Kuwait's proven oil reserves. This is also not what forecasters are currently assuming.


Forecasts wrong
Last week the International Energy Agency's report said output from the Greater Burgan area will be 1.64 million barrels a day in 2020 and 1.53 million barrels per day in 2030. Is this now a realistic scenario?

EDIT

http://www.ameinfo.com/71519.html

They're also giving pie-eyed estimates that it'll decline from current peak production of 1.7 million barrels per day to 1.53 million barrels per day in 2030.

Hmm, 24 years from now Burgan will have show a net production decline of 9%? Whatever.

[rman]

4. So, talk of reducing production has started,

even though as of yet demand destruction due to high prices prevents actual shortages.

Seems to me we're entering the downward slope of the peak.