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Saudi Oil Production Hits All Time High, Surges By 'Half A Bakken'
As hopeful US investors buy everything oil-related on the back of a lower than expected crude build this week (after the biggest build in 30 years the week before), The Kingdom has stepped up overnight and ruined the dream of supply-restrained price recovery as it announced a surge in production output in March to yet another record high. The nation boosted crude output by 658,800 barrels a day in March to an average of 10.294 million a day, which as Bloomberg notes, is about half the daily production from the Bakken formation. WTI Crude prices have slipped by around 2% from yesterday's NYMEX Close ramp highs as it appears Saudi Arabia is not willing to just let this effort to squeeze Shale stall.
Saudi Arabia output surged and hit a new all time high.
And so Crude is sliding... for now.
The Saudis did suggest demand would rise (but again would be offset by increased production):
“Higher global refinery runs, driven by increased seasonal demand, along with the improvement in refinery margins, are likely to increase demand for crude oil over the coming months,” OPEC’s Vienna-based research department said. “Given expectations for lower U.S. crude oil production in the second half of the year, these higher refinery needs will be partially met by crude oil stocks, reducing the current overhang in inventories.”
And as a reminder, Saudi oil production is already record high. Now it is recorder.
As reported last week, instead of leaving its own production flat in an attempt to stabilize oil prices and hit its "optimistic" outlook sooner rather than never, Saudi Arabia would boost production quite sharply to claw back market share. Specifically al-Naimi, revealed that the kingdom’s oil production in March was 10.3-million barrels a day – a record high. "Saudi Arabia is going for it," Olivier Jakob of the Swiss energy consultancy PetroMatrix said on Wednesday as Brent crude fell by about 1.3 per cent.
So what is Saudi Arabia's reasoning to "make up in volume what it loses in price"? Here is Globe and Mail's explanation:
Why is Saudi Arabia opening the spigot? There is no doubt that country’s own domestic demand is rising, thanks to heavy investment in new refineries, requiring more production. But it also appears that Saudi Arabia is making renewed push for market share for fear that a gusher of Iranian oil will soon hit the export markets as the Iranian embargo is ratcheted back. “They will not want to abandon any market share to Iran,” Mr. Jakob said.
The problem for oil producers and investor is that the Saudis are not acting in isolation. In March, both Iraq and Libya managed to boost production in spite of the violence and chaos in those countries. As a result, OPEC production in March was about 31.5-million barrels a day, an increase of 1.2-million barrels over February and 2-million barrels over March, 2014. The March figure is well above the second-quarter estimate put out by the International Energy Agency.
At the same time, U.S. production is surging, creating burgeoning stockpiles of oil. The combination of rising U.S. production and rising Saudi production can only be bearish for oil prices. The prospect of oil testing its January low should not be ruled out, especially if Iran is given the green light to ramp up exports.
The good news for oil investors is that low prices could well trigger a repeat of the consolidation round seen in the late 1990s, which was another period of extremely low prices. In that era, the biggies – BP, Chevron and Exxon – all did monster deals that significantly boosted their global clout. The trick, of course, is to pick the right company. The premium paid on BG’s share was 50 per cent over BG’s closing prices on Tuesday.
Which means higher 2015 highs for oil are likely imminent as physical supply and demand are once again utterly irreelvant for this most financialized of commodities.
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hahahaha lol
What happened to peak oil and Saudi oil fields drying up?
I used to believe that bullshit, too.
What would Matt Simmons say? I'd like to know how the f KSA is able to produce like there's no tomorrow with the massive water cuts (60%) they're dealing with in Ghawar. Can somebody plz explain me?
My guess is that Mr. Simmons would say that SA is not producing more than he said they could. IIRC, Simmons said that somewere around 10mil bbls/day was what they could manage. Oh, they're at 10.3 mbd. Sounds right in line. Of course demand has fallen off a cliff, so it seems like a lot. Let's see SA get to 12 of real production (not temporary floods out of accumulated storage) and hold it there, then we can discount Simmons hypothesis.
Sooo, the bakken oil is NOW the marginal oil? say it often enough and it will be the bad oil.
fucken word manipulation. greedy fucks in the ME with no plan long term. just raw kingsmanship in a brutal society. behead em if they say peep...
fine, we use up your cheap oil first. 10m bbl per day. can't be infinete. last kegger i went to ran dry eventually...
then what, ha, blow jobs by the former kings and princes...
Maybe they have more oil than we think they have
The doomsdayers just wipe the sandwich board clean and write a new date for Armageddon. Oh yeah, and did Greece leave the Euro yet? Has QE infinity produced hyper-inflation in the U.S. yet? Is Apple bankrupt yet? I know...I know... Soon right? Sure....
Armageddon doesn't occur on a single date. It's a process - like falling down the stairs. Do you think that things are really so great?
Wall-Mart is shuttering stores why again?
Bad pipes. Can't you read? Move along!
costco and "out of money" average jack and jill. just convert them to guv.org free shit army dispensors. bring walmart to freddie and fannie status. saves issueing ebt cards. just scan your chipped hand...
Of course you're right, until of course, you are WAAAAAAY wrong. For us (ZHers)....Of course we're wrong, until of course. we're WAAAAAAAAY correct. Who would you rather be?
"What happened to peak oil and Saudi oil fields drying up?"
Could be that we're past "Peak Demand" but not past "Peak Hostile Takeover", since we keep sliding to the right on the EROEI curve.
War preparations? Move along, nothing to see here...
same as it ever was...
But, but, but, the Saudis are our friends.........
Yeah, what happened with that "bust the Russians" project ? I thought the Saudis were supposed to work against them, not us !
I used to work on the road quite a bit and commute a long distance. It was not unusal for me to spend about $500 bucks a month on gas. After I started working from home my monthly gas bill is about $50. I aslo ditched my assistant which saved me about $2500 a month. This donwsizing shit is sweet.
Lol. Me too buddy.
I work part time from home making $7000 a month...Wanna know more?
www.bang_meat.com
last time the trick worked, but this time oil weapon is boomeranging.
Yes, as it turns out , bankrupting your energy sector isn't very smart. Without energy (consumable calories) you cannot do/make shit.
The bankers and financiers need to repay us.
tick tock motherfuckers...
I would like payment to be truth about their involvement in the affairs of the world for the past 500 years for example. On the main news in all the countries. That would be enough, and I would like to leave judging to the God, whatever it is.
I think that should read "half a bacon"
Mmmmm, Bacon.
I remember in 1973 during the OPEQ oil embargo the world was running out of oil. The world then was close to depleting a finite resource.
We were lied to. We are being lied to.
Better late than never to realize that.
No, you were lied to. You simply did not understand what was happening...
It has never been about running out, it is about rates of production...
And the last time I looked $3 Trillion has been spent to increase world crude production by about 3% since 2005...
The technology at that time wasn't capable of exploiting the currently available resources. Wells back then were at 3000 feet.
What's the half life of a shale well, again ?
I've been told my whole life that we were just about out of oil. Sick to death of all the assholes and their lies to push their own agendas.
That's the funny thing about people, they can "tell you" anything.
Thats true and right now the kingdom is telling us that they're producing 10.2 million a day and the shale producers were telling us we were going to be energy independent.
"they can tell you anything." What you believe is up to you. Same as always.
In the mid 80s sub micron feature sizes were not deemed possible. Look up enabling technologies to get a better understanding of how we progress.
and you've failed to understand what's actually happening. Again, we will never "run out." Falling EROEI is strangling the old economy. Printing is just animating the corpse for a while.
There is oil everywhere.
q,
Assuming that's true, that's not the issue. The issue is marginal cost v marginal revenue.
" If you want to keep your fracking, you can keep your fracking."
We will keep fracking and you will benefit as it gets more efficient and cheaper.
They are hurting themselves more than they are hurting domestic oil producers here in the US. Ever heard of a stabilizer or splitter? Read up on them, sludge will quit being imported here in the US and then where will the Saudi's be? They are a corrupt regime and don't have the power they believe they do. Wait and watch. They can't even run and build their own refineries.
USA will soon be back to importing crude oil at 2005 levels--give it a couple of years. If the price rises much, look out trade deficit!
keep on pumpin'.
sell it cheap.
fill those tankers.
the house of saud soon to be the house of sand.
So, according to Bloomberg:
Saudi Arabia "boosted daily crude output by 658,800 bbl in March to an average of 10.294 million"
and
Saudi "output rose by 346,800 barrels a day in March to 10.01 million"...
In the very same Grant Smith article...? Someone wouldn't be pulling these numbers out of their rear ends, would they?
We should use all of this excess production fill all of the unsold vehicles left to rot away en masse in parking lots across the world, then drive them around in circles until they are nearly empty, and in one final spasm of patriotic parasitical consumerism, off a cliff and onto the heads of peasant slave laborers.... or bankers, if that's your fantasy.
The Sauds are still making money at these price levels and need more money to buy more bombs. We dont hear much in our media but they are basically leveling Yemen under the full knowledge of our Nobel Peace Prize leader who is also drawing us closer to a military conflict with Russia. Dont also forget the many unsuccessful installations of bloody new government change-overs in the middle east. What a dear price this world has paid to keep the petrodollar. Our mismanagement of having the reserve currency is really going to haunt our children and grandkids (if we make it that long) I would have to believe God is getting impatient with us to get it right--but then, I am Christian and not Muslim or Jew.
Black gold... Saudi tea!
All this yip yap about oil stocks is just a smokescreen for the real liquid they're after - water. The world's elite have been investing their billions in buying water rights; some states such as Oregon even criminalize capturing the rain that falls on one's own property.
http://www.globalresearch.ca/the-new-water-barons-wall-street-mega-banks...
Once again for you delusional cornicopians...DEMAND is the shits end of story. Production is falling all over the world while S.A. plays their games with inventories and the illusion of increased production. Please continue to observe the off shore, the fracksters and other high cost producers. They are crashing on an accelerating pace. The inventories are piling up because of the world economy crashing. You don't need MOAR oil while 100 million Americans, a+ 100 Million Europeans, and who knows how many Asians are twittering their thumbs without work.
You can laugh at the Peak Oil story all you want but its here but being obfuscated by the putrid state of the economy. Enjoy the cheap gas but its merely transitory.......
pump you suckers
aramco gonna need a lot of sas parachute regiment blackwater security.
the oriental jews of the house of saud thought they was safe.
being jewish and being told by mi6 that they was royalty un alls.
giving billions to new hitler benji nuttyahoo as tribute did bring some protection
but peak is peak followed by decline.
pumping salt water to increase oil output is fatal.
decline coming soon.
the gold in vaults in riyadh still in tacked and 2 play for.
in new york and london gold all gone just gone.
them sheiks they gonna take the 28 page rap for 911.
and for the
the rabbi
dance baby dance
operation oded yinon baby full throttle
According to a source briefed by U.S. intelligence analysts, the Saudis have given Israel at least $16 billion over the past 2 ½ years, funneling the money through a third-country Arab state and into an Israeli “development” account in Europe to help finance infrastructure inside Israel. The source first called the account “a Netanyahu slush fund,
Did Money Seal Israeli-Saudi Alliance?https://consortiumnews.com/2015/04/15/did-money-seal-israeli-saudi-allia...
Zero "$47 Handle" Hedge just keeps piling it on.
15 April 2015, by Grant Smith (Bloomberg)
http://www.bloomberg.com/news/articles/2015-04-15/iea-sees-opec-supply-jumping-most-in-four-years-on-saudi-surge
Oil Production Jumps in March Even as U.S. Drilling Collapses
15 April 2015, by Rich Miller (Bloomberg)
http://www.bloomberg.com/news/articles/2015-04-15/oil-production-jumps-in-march-even-as-u-s-drilling-collapses
U.S. crude oil output to soar till 2020 despite price rout: EIA
14 April 2015, New York (Reuters)
http://www.reuters.com/article/2015/04/15/us-usa-oil-outlook-idUSKBN0N51YD20150415
Salafist Arabia will be gone in 10 years.
http://mycatbirdseat.com/2014/07/the-unfolding-of-yinons-zionist-plan-fo...
SOURCE: OPEC
so all the numbers are fake bs just like china gdp. opec didnt increase anything.....
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I guess you must have missed BusyInthighder…
The long-awaited plunge in oil production is here
http://www.businessinsider.com/massive-pullback-in-energy-production-2015-4
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