OPEC Unable To Reach Consensus On Boosting Oil Production

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Wed, 06/08/2011 - 09:23 | 1350370 Temporalist
Temporalist's picture

And this news comes just in time:

Exxon discovers 700 million barrels in Gulf of Mex

http://www.marketwatch.com/story/exxon-discovers-700-million-barrels-in-...

Wed, 06/08/2011 - 09:30 | 1350407 A Man without Q...
A Man without Qualities's picture

What is says is "700 barrel of oil equivalent", so it might be a lot of gas.  What people need to watch is how the majors are replenishing the oil reserves with gas reserves..... because they are unable to find enough oil.

I am sure many people suspect the impasse to be because they cannot boost production.  However it seems, the Fed's hopes of tanking the markets in order to take oil prices down to $75 or so, in order that they can do the next round of money printing, is going to have little effect on oil, given the huge supply constraints.  

Wed, 06/08/2011 - 09:57 | 1350528 Cast Iron Skillet
Cast Iron Skillet's picture

the world consumes about 85 million barrels per day, so that entire discovery would be enough for, ummm, a week or so. Somehow not very impressive ... but hey, it was the biggest discovery in the Gulf in a decade ...

Wed, 06/08/2011 - 10:46 | 1350762 66Sexy
66Sexy's picture

Did anyone else notice the deceptive headline on yahoo finance this morning:

OPEC to Hike Output, Iran Proposes Compromise by Reuters.

The mainstream media is clearly in a state of collapse, and are losing more and more credibility as investor sophistication and critical thinking rises.

It is pathetic to see the levels they have to stoop to now; just to achieve a few points in price manipulation through fake headlines, they are willing to surrender all credibility, and integrity. 

Wed, 06/08/2011 - 09:28 | 1350420 ElvisDog
ElvisDog's picture

There's an order of magnitude problem here. If it was 7 billion or 70 billion, we might have reason to be happy. 700 million is better than nothing, but it's pretty small.

Wed, 06/08/2011 - 10:43 | 1350769 pre
pre's picture

And the fact that this discovery is being trumpeted as a positive is a cause for concern.  Anyone know what the "real" Saudi production has been lately?

Wed, 06/08/2011 - 10:57 | 1350835 caconhma
caconhma's picture

The West (the USA and its NATO puppets) imperialism & colonialism are having not-too-good times in Iraq, Afghanistan, Libya, Yemen to name few. Easy victories that Bush, Obama, and their zionist masters were counted on are not there.

Presently, the US is in its worst financial, economic, and political crisis from the time of its foundation. Its population is brainwashed, fragmented, disillusioned. The US economic and political system is under a total control by the outside power, specifically by the Rothschild, Oppenheimer, Warburg, and Schiff families that own and control the Western central banks including FED and ECB.

The USA has lost its independence and became a colony. Its colonial masters are not interested in the well-being of America and its people. This is why American standards of living are going down, poverty is on a rise, democracy and freedom and the US Constitution are the relics of the past, illegal immigration is out off control, and the legal system is totally corrupt.

America must go to its roots: democracy, freedom, and free enterprise. It must restore its industrial might. It must think of "America first". Unfortunately, it is not where America is going now.

Wed, 06/08/2011 - 09:32 | 1350432 HelluvaEngineer
HelluvaEngineer's picture

Yeah, turns out it's just sitting there pooled up on the bottom of the ocean.

Wed, 06/08/2011 - 09:38 | 1350448 CPL
CPL's picture

HA!

You commented three seconds before I did.

Wed, 06/08/2011 - 09:33 | 1350438 CPL
CPL's picture

yeah, it's just floating around on the surface of the water as I understand it.

Wed, 06/08/2011 - 09:54 | 1350532 bronzie
bronzie's picture

"Exxon discovers 700 million barrels in Gulf of Mex"

just another part of the game - announcing large new discoveries of petroleum when there are geo-political reasons to bring the price of gas down (like Obama's re-election)

Wed, 06/08/2011 - 09:59 | 1350557 Guarded Pessimist
Guarded Pessimist's picture

So, just over one month's worth for the USA. Yea!!

That's pretty pathetic since they are calling it one of the biggest finds in the Gulf in the last 10 years.

Next we'll be getting all excited over 100 million barrels.

Wed, 06/08/2011 - 10:13 | 1350640 DaveyJones
DaveyJones's picture

BP discovers two liters of Crisco in the back pantry!

Wed, 06/08/2011 - 10:05 | 1350566 r101958
r101958's picture

The world uses 700 million brls in about 9 days. The U.S. uses that much in about 35 days.

Wed, 06/08/2011 - 10:25 | 1350707 Hulk
Hulk's picture

de nada...

Wed, 06/08/2011 - 10:31 | 1350711 That Peak Oil Guy
That Peak Oil Guy's picture

Exxon discovers 9 days worth of oil in Gulf of Mex!

http://www.marketwatch.com/story/exxon-discovers-700-million-barrels-in-...

Wed, 06/08/2011 - 10:43 | 1350773 Temporalist
Temporalist's picture

I see my sarcasm and cynicism was lost on some of you...

Wed, 06/08/2011 - 11:47 | 1351097 Hulk
Hulk's picture

ONe never knows. To the uninitiated, it sounds like a lot...

/sarc always helps.

Wed, 06/08/2011 - 12:39 | 1351335 That Peak Oil Guy
That Peak Oil Guy's picture

Yeah, most responses from people in the mainstream are exactly like yours, and they are not sarcastic.  To people who don't know the consumption numbers and the time to bring a new project on line 700 million barrels sounds like we have nothing to worry about.

TPOG

Wed, 06/08/2011 - 09:24 | 1350374 Racer
Racer's picture

Just great... more inflationary squeeze on the poorest and most vulnerable

Wed, 06/08/2011 - 09:21 | 1350378 Ecoman11
Ecoman11's picture

What they really mean is "We need to know how much money is going to be printed first."

Wed, 06/08/2011 - 09:24 | 1350394 the not so migh...
the not so mighty maximiza's picture

thumbs up!!!

Wed, 06/08/2011 - 10:54 | 1350840 Widowmaker
Widowmaker's picture

Sadly, this argument makes the most sense.

I think you are right.

 

Wed, 06/08/2011 - 09:22 | 1350383 GeneMarchbanks
GeneMarchbanks's picture

I demand charts! Nothing is true without'em!

Wed, 06/08/2011 - 09:26 | 1350385 youngman
youngman's picture

But But But...its good for the CO2 levels.....much less now as fewer people can drive...enviros are happy...lets have another burning man celebration ....

Wed, 06/08/2011 - 10:33 | 1350740 knowless
knowless's picture

for real man, all problems are transitory, you just have to envision a world where you are free, and everything will just fall into place.

Wed, 06/08/2011 - 09:23 | 1350388 Re-Discovery
Re-Discovery's picture

Saudi will boost.  Not sure OPEC matters.

Wed, 06/08/2011 - 09:31 | 1350418 ZakuKommander
ZakuKommander's picture

Better phrased as, "Saudi will say they will boost."

Wed, 06/08/2011 - 11:44 | 1351100 Chuck Walla
Chuck Walla's picture

BINGO! Thats their history so far...

Wed, 06/08/2011 - 09:27 | 1350389 augie
augie's picture

Be afraid Oil consumers, Arabia's oil wealth will not be threatened by your financial indiscretions. No deflation in the oil markets, theres to much instability to know whats going to happen next!

Does anyone else ever feel like they are in a bad sitcom?

Wed, 06/08/2011 - 09:27 | 1350392 ElvisDog
ElvisDog's picture

Not to mention the delicate question of could the OPEC countries substantially boost production even if they wanted to?

Wed, 06/08/2011 - 09:24 | 1350395 lizzy36
lizzy36's picture

Protectionism.

When the liars and cheats that make up OPEC, are unable to agree upon a bullshit wink/wink quoto rate that is more PR statement than anything else, one can assume the mechanics of the cartel cooperation are indeed breaking down.

Obama should be pushing a 10 year program of NATURAL GAS as a transportation fuel RIGHT NOW. Jobs, national security, jobs, economic benefits, jobs.

 

Wed, 06/08/2011 - 09:30 | 1350410 ElvisDog
ElvisDog's picture

I think we should go back to riding horses. They can also serve the dual purpose of fertilizing your garden.

Wed, 06/08/2011 - 09:39 | 1350451 hedgeless_horseman
hedgeless_horseman's picture

+7 (in the pasture)

Wed, 06/08/2011 - 10:20 | 1350662 DaveyJones
DaveyJones's picture

Start in DC. They're experts in horseshit

Thu, 06/09/2011 - 06:35 | 1353939 schizo321437
Wed, 06/08/2011 - 10:17 | 1350668 falak pema
falak pema's picture

lizzy, 

You call them liars n cheats! They no more be liars or cheats than their buyers who are hooked on this arab oil since sixty long years! Think of it! Having one mistress for sixty years. I prefer to be DSK than to be hooked on ONE hooker!

Wed, 06/08/2011 - 10:36 | 1350739 Urban Redneck
Urban Redneck's picture

More government subsidies and debt.  It is NEVER going to work.  Dump the gm volt and license 150/300mpg diesel tech from Volvo & VW.  Eliminate long haul trucking and get the rail lines to establish a proper hub and spoke logistics integration.  10,000 times the ROI, 1/10,000 of the cost.     

Wed, 06/08/2011 - 09:24 | 1350397 Translational Lift
Translational Lift's picture
OPEC Unable To Reach Consensus On Boosting Oil Production or How to keep the price of oil up while pumping like a MF........
Wed, 06/08/2011 - 09:28 | 1350398 swissaustrian
swissaustrian's picture

Commodities rallying...

Wed, 06/08/2011 - 09:29 | 1350403 Yancey Ward
Yancey Ward's picture

An explanation is that most are already producing flat out, and can't raise the amount.  If this is true of Saudi Arabia, then OPEC is pretty meaningless as a cartel.

Wed, 06/08/2011 - 09:27 | 1350411 alexwest
alexwest's picture

nice.. latest nail in so called recovery
brent is 118 $.. i guess guys in OPEC really wanna see 2008 replay..

alx

Wed, 06/08/2011 - 09:32 | 1350415 Cdad
Cdad's picture

OT:

Maybe this news has something to do with the "confidence building exercise" currently going on with ANF shares.  Like I said, investing in $30 t-shirts while the nation sits on the edge of a global depression is...well...a speculative endeavor, to say the least.

An HFT terminator has engaged in an attempt to save this Ponzified stock...the one algo that did not get the memo that the CEO of the company has completed "Operation Billionaire."

Standby for more liquidations on balloon stocks that have no business at all being priced anywhere near where they are...as criminal syndicate Wall Street bankers press into service the obviously useless and valueless, helmet wearing ETF group, prying their mouths open to receive the puked up underlying shares.

Wed, 06/08/2011 - 09:49 | 1350501 Cdad
Cdad's picture

Oops...and there it is..."Operation Billionaire" ends with the CEO telling supposed smart money fund managers that the quarter is going to come in light.

I'll remind you that on April 5 of this year, criminal syndicate Wall Street bankers took the stock from $59 to $66 in ONE SESSION because of...wait for it...something the CEO told them back then...wait for it...the company was "bullish due to its expansion in Europe."  Uh huh.  Nice thesis.  In the interim, of course, said CEO unloaded hundreds of thousands of shares into the magically ballooning stock price.

Should the HFT terminator refuse to yield, and should the terminator try to take the stock back up, well, you will have a lovely chance to sell Abercrombie and Fitch into "smart money."

All of this could not have happened to a better company, and the longs on this issue deserve the meltdown coming here.  

 

Wed, 06/08/2011 - 09:28 | 1350416 bigwavedave
bigwavedave's picture

Iranian nutjobs 1 - Pussy Princes with tablecloth hats 0

Wed, 06/08/2011 - 09:39 | 1350430 hedgeless_horseman
hedgeless_horseman's picture

What they really mean is, "Will the U.S. help me suppress my people (Bahrain, KSA, Yeman, Oman), or allow my people to overthrow me (Tunesia, Egypt, and maybe Libya)?"

Wed, 06/08/2011 - 09:35 | 1350433 Caviar Emptor
Caviar Emptor's picture


OPEC Unable To Reach Consensus On Boosting Oil Production

....because they can't! Just like during the early stages of the Libya oil shutdown, Saudi Arabia bluffed that they could raise production...then failed to. 

Now should be the easiest decision they ever made: oil over $100 AND increased Asian demand. But they too are scrambling with new technologies for drilling and collection. Must be that the old fields are less productive. 

Wed, 06/08/2011 - 10:05 | 1350593 speedy
speedy's picture

....because they can't!

Ding Ding! You have hit the nail on the head.

OPEC secretary general says OPEC spare capacity down to 4-4.5MBPD after Libya

Opec secretary is telling porkies.

Wed, 06/08/2011 - 09:40 | 1350457 Madcow
Madcow's picture

the central bankers pretend that the money supply can remain stable in the context of global deflation and population declines - while OPEC pretends that it can increase production and control the POO if it needs to - while Western governments pretend that they can make good on the promises they've made to their citizens. 

so, the entire economic system is based upon faith and trust.  but it is becoming increasingly difficult to have faith and trust in global political leaders, bankers, and cartel members - who are increasingly brazen thieves, sociopaths, and sex criminals who no longer care about cultivating the faith and trust of the people and resources they govern. 

 

Wed, 06/08/2011 - 09:44 | 1350476 wandstrasse
wandstrasse's picture

Hello Banzai, everybody knows what silver bears look like, but I cannot imagine 'crude bears' - can you help?

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