Iraq Slashes Projected Crude Output By Half Over Next 5 Years

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Sun, 05/08/2011 - 16:22 | 1253611 Hammer Time
Hammer Time's picture

peak oil is so 2005

Sun, 05/08/2011 - 16:50 | 1253684 Ruffcut
Ruffcut's picture

peak cheap oil is the new vogue.

Pay at the pump bitchezzz.....

Oil is the trigger to all things inflationary, war, currency flucks, etc.

Gold and silver, don't mean shit here except against ponzi fiat.

Sun, 05/08/2011 - 16:55 | 1253694 Flakmeister
Flakmeister's picture

  Peak oil is ultimately deflationary, as is the rising cost of oil. Forget fiat, look at the Gold to oil ratio....

Sun, 05/08/2011 - 17:13 | 1253749 traderjoe
traderjoe's picture

No, it's biflationary.

Sun, 05/08/2011 - 17:27 | 1253786 Flakmeister
Flakmeister's picture

I won't quibble with you.... It must be ultimately deflationary as an increasing fraction of disposable income is required for basic energy needs...

Sun, 05/08/2011 - 18:28 | 1253927 traderjoe
traderjoe's picture

The ultimate collapse will be a bitch.

Sun, 05/08/2011 - 18:40 | 1253945 Flakmeister
Flakmeister's picture

No argument there

Sun, 05/08/2011 - 19:21 | 1254036 knukles
knukles's picture

So I should call my wife ultimate collapse?  'Cept she argues.

Sun, 05/08/2011 - 20:51 | 1254239 hedgeless_horseman
hedgeless_horseman's picture

Who needs oil when we have mint juleps to lubricate the joints and fuel the mind?

 

Sun, 05/08/2011 - 20:23 | 1254170 trav7777
trav7777's picture

Flak, depends upon what you mean by that...oil supply decline means that debts predicated upon a future of expansion aren't worth par.  That is devaluationary, if we use monetarist definitions of inflation and deflation.

Any debt simply has to be discounted against the reality of a future of less.  That includes the FRN.

Iraq won't get to 6mbpd by 2017 either...that's a mere 6 years away.

There goes 6mbpd of "expectations" right the fuck up in smoke.  IEA is going to have to adjust again.

Sun, 05/08/2011 - 20:44 | 1254218 Flakmeister
Flakmeister's picture

No real argument here, I equate devaluation of future obligations to be deflationary. You do agree though that loss of disposable income is deflationary.

So maybe I didn't state it correctly. But, hey, I never took economics, I was too busy learning useful information....

Re: 6 million, yeah, probabaly a pipe (line) dream. I do not doubt they will bump it up a bit though. Too little, too late...

Sun, 05/08/2011 - 22:33 | 1254437 Worker Bee
Worker Bee's picture

Entropy is the Law.

Entropy by defintion is deflationary.

 

Mon, 05/09/2011 - 03:14 | 1254767 Eric Cartman
Eric Cartman's picture

Okay Peter Schiff. Thanks.

Mon, 05/09/2011 - 07:14 | 1254857 j0nx
j0nx's picture

There's that 'D' word again here on ZH. Heretic, Heretic!...

Sun, 05/08/2011 - 18:49 | 1253974 PulauHantu29
PulauHantu29's picture

But...but..."you can't eat oil!"

LMAO!!!!!!!!!!!!!!!!!

It's all 'bout PMs and oil...hold tight and prosper.

Sun, 05/08/2011 - 19:45 | 1254086 traderjoe
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IMHO - pm's are not held to 'prosper', they're held to maintain, to preserve, and to make it through to the other side. Fellow citizens will be much less likely to accept pm's as money if they are enriching a new set of 'elites'.

Sun, 05/08/2011 - 21:04 | 1254267 cossack55
cossack55's picture

I think he meant prosper as in "continue to live".

Sun, 05/08/2011 - 22:18 | 1254410 traderjoe
traderjoe's picture

Perhaps. But I get tired/wary of all of the excitement around here with how 'rich' people are going to get with their pm's. I believe a reset is inevitable and that pm's are a core aspect of preparation. But I have no illusion that the reset won't be really painful. And that in many ways, these are the 'good times'.

Sun, 05/08/2011 - 23:49 | 1254587 PulauHantu29
PulauHantu29's picture

cossack, you are 100% correct! Gold will allow you to maintain wealth in realtion to the rapidly expanding money supply and loss of purchasing power of the dollar (and most other paper currencies). I don't plan on getting wealthy from it, but I just want to be able to enjoy a Snickers Bar, bowl of berries, etc. Look at what the dollar will buy today? A 12 ounce "pound cake" that used to be guess what, A Pound!

 

GL! to all bag holders...unless they work on Wall Street and are getting one of those $800,000 Bonuses at GS, they need to think and read....education is the key to survival.

Sun, 05/08/2011 - 17:13 | 1253750 Manthong
Manthong's picture

Better to hold those reserves until they can be revalued in whatever the SDR mix is to replace the dollar. Iraq certainly doesn't owe anything to Americans after what they've done to the country. 

Sun, 05/08/2011 - 18:02 | 1253864 topcallingtroll
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SDR transition start date 2022. Full implementation 2028.
Count on it.

Mon, 05/09/2011 - 10:05 | 1255213 i-dog
i-dog's picture

There'll be nobody left with any money in Amerika by then (just the FEMA camp guards).

Sun, 05/08/2011 - 16:28 | 1253623 Hephasteus
Hephasteus's picture

Everytime I try to start a 5 million man oil sucking army that uses more oil than a country of 150 million people they go and pull this shit.

At this rate all I'll be able to do is mount a mini gun in the trunk of my camry and weld some steel plates on it. The man is always keeping me down.

Sun, 05/08/2011 - 17:34 | 1253797 HowardBeale
HowardBeale's picture

Still laughing...

Sun, 05/08/2011 - 17:58 | 1253846 mynhair
mynhair's picture

A Camry trunk has room for a minigun?  Wow!  Better get me one 'o those smoking 20MM quads for the back of my Escape hybrid.

Sun, 05/08/2011 - 18:04 | 1253869 augie
Mon, 05/09/2011 - 00:38 | 1254666 Dgthr of Isis
Dgthr of Isis's picture

FOFLMBO!

Sun, 05/08/2011 - 16:29 | 1253625 I am Jobe
I am Jobe's picture

And the hits keep on coming for the USA. Keep chanting USA USA in big deep shit

Sun, 05/08/2011 - 17:16 | 1253752 Weisbrot
Weisbrot's picture

the bears may have something to say about that........

Sun, 05/08/2011 - 18:13 | 1253894 css1971
css1971's picture

It's all the same problem. Just the 1 cause.

 

Sun, 05/08/2011 - 16:35 | 1253636 cossack55
cossack55's picture

Margin Hike Bitchezzzz!!!!!

Sun, 05/08/2011 - 16:38 | 1253643 lettuce
lettuce's picture

is this iraq's big "F U" to the USA?

Sun, 05/08/2011 - 18:49 | 1253966 friendly manitoba
friendly manitoba's picture

 iraq thinking about " capturing the 700 mil  cu ft of natural gas it flares at its oilfields each day "  ...  found that startling 

Sun, 05/08/2011 - 20:55 | 1254250 hedgeless_horseman
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Pipelines through Turkey have been more of a bugaboo than Russia transporting through Ukraine. 

Mon, 05/09/2011 - 00:35 | 1254665 Missiondweller
Missiondweller's picture

I would call it just one of many FU's to the US, and I live in SF, USA.

Sun, 05/08/2011 - 16:37 | 1253651 uhb
uhb's picture

I guess the price of oil without financial investors would swing somewhere between 75$ and 100$ pb. Swings above and below are extremes added by the everlasting fight of bulls & bears

Sun, 05/08/2011 - 16:40 | 1253653 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

You can't output want you ain't got.

Sun, 05/08/2011 - 16:54 | 1253690 Muir
Muir's picture

So which is it?

"Ministers also argue that there is not sufficient demand for the extra oil, despite soaring prices. Last month, Saudi Arabia cut its output by 800,000 barrels a day after pumping more in response to the political crisis in North Africa, complaining that the extra crude was sitting in tankers with no customers."

Sun, 05/08/2011 - 16:55 | 1253700 Flakmeister
Flakmeister's picture

  There is a grain of truth in the Saudi statement. The world refining capacity for Arabian Heavy is well supplied. Now those refineries that need lighter sweeter crude are running below capacity because of a lack of feedstock...

Sun, 05/08/2011 - 19:06 | 1254009 Muir
Muir's picture

thank you

Sun, 05/08/2011 - 20:26 | 1254178 trav7777
trav7777's picture

KSA also may have been employing surge production capacity for this extra 800kbpd.

This would not be the first time they've ramped into a spike and then backed off.  They are likely in decline, thus flat out in terms of production.

Sun, 05/08/2011 - 20:29 | 1254192 Flakmeister
Flakmeister's picture

Wondering when your smiling face would appear...

Yes, they are masters of managing their ~60 million barrel tank farm.

They ain't altruistic but all things being equal their management of "The Precious" has been fairly even handed....It could have been in worse hands.

Sun, 05/08/2011 - 22:00 | 1254369 Mec-sick-o
Mec-sick-o's picture

Better get used to sour crude oil.

Sun, 05/08/2011 - 16:46 | 1253667 knukles
knukles's picture

After all that shit all we get's a pile of dirt?
Maybe if we all hold hands and sing Kumbaya?

Sun, 05/08/2011 - 16:47 | 1253681 f16hoser
f16hoser's picture

This should help the Iraqi Dinar revalue to $3.00+

 

Sun, 05/08/2011 - 17:04 | 1253730 hack3434
hack3434's picture

Oh no!! The Dinar bugs are back. 

Sun, 05/08/2011 - 17:43 | 1253822 Holodomor2012
Holodomor2012's picture

You can call me anything you want.  Just don't call me late for dinar.

Sun, 05/08/2011 - 16:50 | 1253682 Muir
Muir's picture

Waiting for someone to say that this is bullish for silver.

Sun, 05/08/2011 - 16:54 | 1253691 lettuce
lettuce's picture

you see, with the additional long term revenue that iraqis will receive, they will be able to reinvest the proceeds of oil sales into their seventy-third most loved asset - silver jewelry. so you see, buy silver. clearly.

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