US energy chief: Low oil production drives price

[underpants]

IDDAH, Saudi Arabia - The U.S. energy secretary said Saturday that insufficient oil production, not financial speculation, was driving soaring crude prices.

Secretary Samuel Bodman's comments on the eve of an energy summit in the Saudi port city of Jiddah set the stage for a showdown between the U.S. and conference host Saudi Arabia, which has largely blamed speculation in the oil markets for record prices.

The U.S. and many other Western nations have put increasing pressure on Saudi Arabia, the world's top oil exporter, to increase production. Saudi officials have been hesitant to do so, arguing that soaring prices have not been caused by a shortage of supply.

"Market fundamentals show us that production has not kept pace with growing demand for oil, resulting in increasing prices and increasingly volatile prices," Bodman told reporters. "There is no evidence that we can find that speculators are driving futures prices" for oil.

http://news.yahoo.com/s/ap/20080621/ap_on_re_mi_ea/saudi_oil_summit;_ylt=ArNECVDJkjtds6jvBpABfgas0NUE

But hey people like Bodman think that China is helping the situation by drilling off the coast of Cuba, right?

[DJ13]

1. "Low oil production" implies a shortage

Has anyone waited in a line at the gas station recently?

Been unable to buy as much as you could afford?

Bodman is parroting the oil industry, but I guess we cant expect anything else from the oil industry's hand picked administration.

[Mojorabbit]

3. What has waiting in lines to do with it?

In the 70's opec said they were not going to ship oil to us which ended up with panic and lines. This is a slow frog boil situation. While there is speculation causing an increase, there are also declines in many of the world's oilfields coupled with increasing use in China and India.
I think there are plenty of people who cannot afford to buy it at the price it is now. I see increased reports of people having gas stolen from their cars and of drive aways at the pump. I remember that from the 70's.
It is a finite substance. Probably would be a lot cheaper without the speculation but still is a problem to be addressed.

[DJ13]

5. "What has waiting in lines to do with it?"

Just how do you expect a "shortage of production" to NOT impact supplies?

The oil companies and the speculators have been claiming theres a shortfall between oil production and demand for the last 5 years now.

So where IS this invisable shortage?

Shouldnt we have seen an imbalance between production and demand at sometime over the last 5 years?

Have you (or anyone else in the world) been unable to buy gas when you need to?

[Mojorabbit]

6. Our usage has declined

due to high prices. Sooner or later when the balance between all the speculation / supply evens out with the inability to pay for it there will be physical shortages. I don't expect that here for a while unless the dollar tanks even more.
Lots of people in other countries have not been able to get fuel. I am sure a google will turn up articles because in the past year I have read them. I am not well tonight or I would pull some for you. If I feel better tomorrow, I will dig up some articles.

[GliderGuider]

7. The globasl shortages are only invisible because you're not loking for them.

Google news: "fuel shortages"

http://news.google.ca/news?oe=utf-8&rls=org.mozilla%3Aen-US%3Aofficial&client=firefox-a&um=1&tab=wn&hl=en&q=%22fuel+shortages%22&btnG=Search+News

Here's the first page:

Drivers feel the pinch as fuel shortages bite
Northumberland Gazette, UK - 20 Jun 2008
FUEL supplies to north Northumberland were disrupted over the weekend as a knock-on effect of the tanker drivers' strike. Deliveries to garages were either ...

AfricaNews
S.Africa faces World Cup fuel shortages
Reuters - 18 Jun 2008
CAPE TOWN (Reuters) - South Africa faces the possibility of fuel shortages when it hosts the 2010 Soccer World Cup, a senior government official said on ...
2010 fuel shortage warning The Times
all 30 news articles »

Monsters and Critics.com
'Worse fuel shortages set to come'
Telegraph.co.uk, United Kingdom - 15 Jun 2008
By David Millward, Transport Editor, and Stephen Adams Motorists can expect worse fuel shortages if tanker drivers repeat their strike action at the end of ...
Fuel shortages as tanker drivers strike Wimbledon Guardian
Fuel shortages: The petrol stations at risk guardian.co.uk
Region is spared shortages as fuel deliveries set to resume The Birmingham Post
Inverness Courier - Norwich Evening News
all 3,351 news articles »

IrishExaminer.com
Food and fuel shortages loom over haulier threat
IrishExaminer.com, Ireland - 19 Jun 2008
By Dan Collins FOOD and fuel shortages could become a grim reality from next week if the Government fails to meet the demands of Irish truckers frustrated ...
China fuel price hike as much politics as policy
guardian.co.uk, UK - 20 Jun 2008
China's price rise -- the sharpest ever one-off hike -- was certainly also driven by the need at domestic front to solve revent fuel shortages, ...
PBOC warns of tougher inflation fight, rate rises South China Morning Post (subscription)
Chinese petrol far below global levels even after price hike Economic Times
Big fuel hike in China forces oil price down Scotsman
Bloomberg - New York Times
all 484 news articles »
China's Stocks Surge, Led by Power Producers, on Fuel Prices
Bloomberg - 20 Jun 2008
The country has experienced fuel shortages and rationing, and the price increases will improve supplies, the National Development and Reform Commission said ...
China freezes coal prices to avert power crisis
Economic Times, India - 19 Jun 2008
Peak power shortfalls due to fuel shortages threatened to reach as high as 6 gigawatts this summer in Guangdong, whose export-oriented factories have ...

The Sun
Fuel shortages spread as tanker drivers' strike enters fourth day
Telegraph.co.uk, United Kingdom - 16 Jun 2008
By David Millward, Transport Editor Motorists are facing increasing fuel shortages with queuing spreading to several parts of the country as the strike by ...
PETROL STRIKE IS CALLED OFF UK Express
Fuel shortage drives people off roads in Britain Economic Times
Petrol station drops £1.99 charge BBC News
Mirror.co.uk
all 39 news articles »
Fuel shortages ease
Burnham & Highbridge Weekly News, UK - 18 Jun 2008
By James Beal FUEL shortages are beginning to ease in Burnham and Highbridge as a national tanker drivers' strike causes panic at the pumps. ...
Drivers steer clear of fuel shortages panic
Airdrie and Coatbridge Advertiser, UK - 18 Jun 2008
Russell Ellerby, the authority’s assistant chief executive, said: “The council is aware of public concern regarding possible fuel shortages and we can ...

[underpants]

4. Yeah but this serves to promote more drilling

and GOD KNOWS we need more drilling-that'll solve EVERYTHING

[Dead_Parrot]

8. Yes, millions of people.

There are over two dozen countries with rationing and shortages (Nepal even had to shut down it's ambulance service recently) but since they are not in North America or Europe they tend to slip under the radar.

[texastoast]

2. Crockola

It's the fucking traders.