The Day of the Oslo Warning

[4dsc]

http://www.eurotrib.com/story/2006/5/5/112629/0939

Read this and wonder...

On 22 June, at 8am, all operators in the oil sector in Norway received the same message from the authorities: "Starting today, Norway will no longer authorise oil exports from its territory. You are required to reduce your production accordingly, effective immediately. Delays will only be tolerated for imperative technical or safety reasons". At the same time, a communiqué was sent to all major press agencies, with the similarly terse content. "As of today, for national security reasons, Norway has decided to suspend all oil exports. Further information will be communicated at 1pm today. All operators in Norway and Norwegian waters have been required to reduce production, effective immediately".

Panic broke immediately in trading floors in Asia, where it was the middle of the afternoon, and in Europe, where the trading day was just starting. After 2 minutes, oil prices reached 85$/bl ; after 7 minutes, the symbolic level of $100 was breached, but that was not enough to calm down anything. After 15 minutes, the prices has reached 145$/bl and showed no sign of slowing down in their vertigious increase, as traders frantically tried to grab whatever cargoes were available on the market. Frantic phone calls to oil companies on the ground and to Norwegian authories yielded little. Oil companies confirmed having received the instructions, and were already urgrently assessing the technical constrants of shutting down production on their platforms.

[dipsydoodle]

1. Thanks for that

Simply mind blowing.

[phantom power]

2. I take it this is one of those "hypothetical scenario" stories, yes?

Cuz I'm pretty sure I would have noticed a day that oil peaked at $750/barrel...

[4dsc]

3. Yes its a hypothetical story

but ask yourself, if you were a oil exporting country and you knew that oil was going to peak worldwide real soon, would you be thinking about conserving your own oil supplies?? Perhaps not export as much?? I blieve that day will come sooner than we think..

[phantom power]

4. Yes, I agree it's quite possible...

Arguably, the recent oil industry nationalizations are a step in that direction. Any country that was paying attention would be taking aggressive steps to achieve energy independence. Wish I lived there.

[ramapo]

5. Make Norway safe for democracy

I'm sure the U.S. would have to follow through on such a promise if the Norwegians ever took action such as is described in the article.