Saudis to Increase Oil Production

[madeline_con]

Source: UPI

The proposed increase would bring output to 10 million barrels, the highest ever for the world's largest oil exporter.

UPI) - Saudi officials have advised oil traders and analysts they plan to increase output by 500,000 barrels a day next month, The New York Times reported Friday.

Saudi Arabia's current output is 9.45 million barrels a day, up 300,000 barrels from last month. The proposed increase would bring output to 10 million barrels, the highest ever for the world's largest oil exporter.

While King Abdullah snubbed President George W. Bush when the Bush asked for an output increase during two meetings this year, Saudi officials appear to be nervous about the continued rise in oil prices, the Times said. The king has also scheduled a meeting for June 22 in Jeddah for major oil producers and consumers to discuss the reasons for the price increase.

The price of oil dropped Friday by $1.88 a barrel to $134.86.

Ibrahim al-Muhanna, an adviser at the Saudi petroleum ministry, said his country wants "to bring back stability to the oil market."

Read more: http://700wlw.com/pages/nationalNews.html?feed=104668&article=3827620

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Is relief in sight? Maybe this will help bring gas prices down.

[Phred42]

1. It won't change anything

The problems are refining and spectulation

[ohio2007]

5. South Dakota County Votes to Build First New US Oil Refinery in 30 Years

It will take a few years to build but those living in the Dakota's are speculating americans will not want to be paying $25/gal in five or so years.


snip
The last new oil refinery built in this country was in 1976. In the early 1980s, we had about 300 refineries around the country. Since then, about 170 of those have closed, and due to regulatory challenges, it has basically been impossible to build any new ones. Our current remaining refineries produce about 8 million barrels a day, but our demand is about 9 million a day.

And this brings us to Union County in South Dakota. Earlier this week, voters approved zoning for a new refinery 58% to 42%. The company proposing the refinery is Hyperion, who say that the refinery, once built, will produce about 400,000 barrels per day, or about half of processed fuel we currently purchase from other countries.
Hyperion says the $10 billion refinery will be the cleanest and "greenest" refinery in the world, and construction would begin in 2010, with the refinery going online in 2014.

snip

http://www.motortopia.com/blogs/view/t/garage/j/3844/i/south_dakota_county_votes_to_build_first_new_us_oil_refinery_in_30_years
Question is;
are they going to process Hugo's sludge crude or something more ......closer to US shores ?

At least the Saudis claim they will increase capacity to ship out of the kingdom and Hyperion will will become the next big evil oil company in six years ;)

[Angleae]

15. Being build in S Dakota it is intended for

oil from Canada probably, not Venezuela or anywhere else.

[ohio2007]

17. Breaking the dependency cycle

Colorado is rich in Shale oil as is Canada. I remember reading articles that said oil would have to reach $90 - $100 bbl before extracting oil from shale would be profitable.

well

that day is here.

[1Hippiechick]

6. Unfortunately, it will. Fuggedaboud continuing to push for alternative energy

People will go back to their routines with no thought to the future......

[papau]

9. True - this is tar that the Saudi's have been pushing for a year - with no buyers

[Texifornia]

12. There's some speculation

But if worldwide refining capacity were the problem, then the spot price of oil would plummet.

Refining capacity is a ruse. Tanker lease rates are down. Most refineries in the U.S. have installed hydrotreater systems to handle the heavier feedstocks. A continued switch from light-sweet to heavy-sour will mean a little more "de-bottlenecking" and there will be a regional refinery or two built, but CRUDE prices are the reason gasoline is high, not refinery capacity.

[Fridays Child]

2. And, when it drops, we'll all be SO happy to pay only $3.50 per gallon.

:mad:

[Historic NY]

3. Thats interesting I was thinking sand doesn't do their diet well.

Every Arab country including russia should be paying 5X the tarriffs on all food stuffs, perhaps that would be an incentive to produce oil.

[Cleita]

4. I'm not ready to call them Santa Clause yet. n/t

[Javaman]

7. so just over half a million barrel increase. LOL oh yeah, that will solve everything! LOL

:sarcasm:

Anyone that has been paying attention will have noticed that China's daily oil needs has jumped 24% in the last year alone.

1/2 million barrels? fart in the wind.

[papau]

10. Not a real increase - just releasing some tar to see if there are any buyers

[slipslidingaway]

8. Bush and Saudi Arabia Make Oil for Nuclear Deal ???

http://www.undergroundpolitics.com/index.php/policy_and_international_politics/bush_saudi_oil_for_nuclear_deal.html


"...So Bush got the extra oil he was after, but 300,000 barrels is just a few percent of Saudi Arabia's daily production - it won't have a real impact on global oil availability. Therefor, the most interesting aspect of this deal is what Bush was willing to offer the Saudis for such a literal "drop in the bucket." Reuters hints at nuclear co-operation, but the WhiteHouse spells it out: "The United States will assist the Kingdom of Saudi Arabia develop civilian nuclear power." The key is providing enriched uranium so the Saudis won't need to complete the fuel processing cycle themselves.

Would the same offer be then made to Iran? Would the U.S. provide Iran with enriched uranium for civilian energy use? Tony Snow claims the offer was already made, and was on the table at least as of February 2007.

With this policy, the threat of nuclear weapons proliferation would indeed be reduced as fewer states have access to the required refining technology (and infrastructure) but it also grants the west and China access to its own energy monopoly, backed by the IAEA and UN Security Council. If you break the deals down to the core component, it is fine if Saudi Arabia and Iran have nuclear power - as long as we get paid some oil for the priveledge.'


Embedded links

http://www.reuters.com/article/topNews/idUSL1572317920080516?feedType=RSS&feedName=topNews&pageNumber=1&virtualBrandChannel=0

http://www.whitehouse.gov/news/releases/2008/05/20080516-1.html


Also...

US Nuclear Tech For Saudis
http://www.atlargely.com/2008/06/us-nuclear-tech.html


Media Note
Office of the Spokesman
Washington, DC
May 16, 2008

http://www.state.gov/r/pa/prs/ps/2008/may/104961.htm

"U.S.-Saudi Arabia Memorandum of Understanding on Nuclear Energy Cooperation
Today, Secretary of State Condoleezza Rice and Saudi Arabia Foreign Minister Prince Saud Al Faisal signed a Memorandum of Understanding on Civil Nuclear Energy Cooperation. The Government of the United States and the Kingdom of Saudi Arabia will establish a comprehensive framework for cooperation in the development of environmentally sustainable, safe, and secure civilian nuclear energy through a series of complementary agreements. Both of our countries face growing energy needs and we seek to address them in a responsible manner that contributes to reducing the effects of greenhouse gases on the global climate.

The United States will assist the Kingdom of Saudi Arabia to develop civilian nuclear energy for use in medicine, industry, and power generation and will help in development of both the human and infrastructure resources in accordance with evolving International Atomic Energy Agency guidance and standards. Saudi Arabia has stated its intent to rely on international markets for nuclear fuel and to not pursue sensitive nuclear technologies, which stands in direct contrast to the actions of Iran.

Additionally, Saudi Arabia became the 71st nation to join the Global Initiative to Combat Nuclear Terrorism. As a partner in this multilateral initiative, Saudi Arabia will work with partner nations to address all aspects of the nuclear terrorism threat, including deterrence, denial of safe havens, detection, material confiscation, and response.

The Kingdom of Saudi Arabia also presented the United States with a diplomatic note endorsing the Proliferation Security Initiative (PSI). Saudi Arabia joins more than 85 states participating in the Initiative, which responds to the growing challenge posed by the proliferation of weapons of mass destruction, their delivery vehicles, and related materials worldwide. PSI participants commit to undertake measures to interdict transfers of WMD related items, exchange relevant information, and strengthen national legal authorities."

[matt007]

11. This is it folks

They are at max after this increace.........they will hit their peak in a year or two from now...then the shit starts.....get the best gas mileage car u can NOW

[Dogmudgeon]

13. Do they really think they can do it?

I think that they're maxed out now, and have been for a few years.

They can maintain a plateau for perhaps as long as a decade, but after that, it's over. And they know that the more they pump now, the faster their kingdoms will crumble. Every extra barrel we get will come with strings attached.

We get most of our oil from Mexico and Canada. Canada is pushing full-speed-ahead to turn Alberta into a giant processing plant to extract oil from shales and sands with no promises on price. Production from Mexico's mammoth Cantarell oil field has collapsed in the last year. Their other fields, such as Chicontepec, are deep-water and will require US or European partnering.

If we in the USA had the sense God gave stack of wet paper bags, we'd start making cheap, light electric cars and add-on electric motors for bicycles, then bite the bullet while we rebuilt and upgraded our rail system. The auto industry could be re-purposed to do these jobs.

But the philosophy is: If you want it bad enough, you'll get it. And if you don't get it, get a gun and take it.

--p!

[Delphinus]

14. I wonder that too, Pigwidgeon.

Seems that every time they say they're going to increase production, it doesn't happen for one reason or another.

And, as Javaman said up thread, 500,000 barrels per day is a "fart in the wind".

[tama]

16. The real deal

http://netoilexports.blogspot.com/