Saudi curbs on oil output drive up cost

[stickdog]

http://www.boston.com/business/globe/articles/2003/08/29/saudi_curbs_on_oil_output_drive_up_cost/

Saudi curbs on oil output drive up cost
Forecasts of easing prices hurt by sabotage in Iraq
By Stephen J. Glain, Globe Staff, 8/29/2003

WASHINGTON -- As Americans face near-record prices for a gallon of gasoline -- more than $2 a gallon in some parts of the country -- the world's largest petroleum-producing nation is rationing supply to drive crude costs higher.

Since the removal of Iraqi dictator Saddam Hussein, Saudi Arabia has curbed its oil output by more than a million barrels a day to keep prices above $22 to $28 a barrel, the range preferred by the Organization of Petroleum Exporting Countries. The result: The price of oil has climbed above $30 a barrel and looks like it could stay that way for some time. "The war was supposed to at least moderate prices," says Edward Chow, an oil consultant and visiting scholar at the Carnegie Endowment for International Peace in Washington. "Now everyone, especially the Saudis, is enjoying artificially high prices."

This is not what the White House wanted as it prepared its war plans for Iraq. Bush aides failed to anticipate the scourge of looting and guerrilla raids on Iraqi petroleum fields that has reduced the country's oil exports to a trickle. Not only is the administration deprived of the petrodollars it thought would be available to pay for post-war reconstruction, the Saudi move to limit its own output has contributed to spiraling gasoline prices ahead of a Labor Day weekend expected to be one of the busiest on record. Energy costs are expected to creep higher with the increase in seasonal demand as temperatures cool and problems in oil-rich Venezuela and Nigeria continue to limit global supply.

"For those who thought the juice would flow after the war, this is a real disappointment," said Jared Bernstein, a senior economist at the Economic Policy Institute in Washington.

[lanlady]

1. how many rightwing talking heads

like Kudlow & Kramer were predicting a tremendous economic boom fueled by cheap oil from Iraq? Why am I not surprised they were wrong?

[PurityOfEssence]

13. But it wasn't about oil

Nope.

Not even.

Why would you even say that...

At least it's starting to be talked about in the media...

[hang a left]

2. Perhaps, this is what

Daddy Whistle and Prince Suldan were discussing on Wednesday.

[bluedog]

9. cheney also

bandar went all the way to Wyoming to meet with cheney.....details......mind your own business as per usual.

[loudsue]

3. Bush has pissed off the entire world

If he thought for one minute that he could bully the big boys of the world, the big boys have news for him. He thought he could follow the PNAC line for world domination. And don't forget, Saudi Arabia was mentioned, as was Egypt, in the PNAC documents concerning US strategic operations. Don't think the Saudi's don't know about PNAC. OR N. Korea, for that matter.

That's what happens when you have a bunch of narcissistic megalomaniacs with their finger on the button, and in charge of American soldiers. Hell! We don't even have enough soldiers to contain IRAQ!!!

What the hell were they thinking??? :wtf: Their war hard-on must have drained all the blood from their brains!!

:kick:

[RedEarth]

4. One more example of ....

poor planning and arrogance on the part of the b.... administration. Frankly, it seemed quite apparrent our invasion of Iraq would result in higher oil prices.


"Saudi Arabia has curbed its oil output by more than a million barrels a day to keep prices above $22 to $28 a barrel, the range preferred by the Organization of Petroleum Exporting Countries. The result: The price of oil has climbed above $30 a barrel and looks like it could stay that way for some time."

[Oggy]

5. Any thoughts on Peak Oil?

Is this a sign of Peak Oil perhaps, rather than the Saudi's turning off the taps? They certainly wouldn't tell anyone if production was down. Or am I in tin hat country? ( although peak oil has to happen sometime).

[treepig]

10. not so many myself,

but these people seem to have plenty:

http://www.wtrg.com/prices.htm

[jamesinca]

6. The Saudis have an iterest in keeping Iraq oil off the market

"Administration hawks have "talked about this for a long time," said James Akins, an ex-US ambassador to Saudi Arabia. "They thought they could take Iraq and tell the Saudis to go to hell. It's not as easy as all that."
Though White House officials insisted the war was not about Iraq's oil, they saw oil-related dividends of a post-Hussein Iraq. "When there is a regime change in Iraq, you could add 3 million to 5 million barrels of production to world supply," Larry Lindsey said a year ago in remarks that were quickly disowned by the White House and followed by his resignation. "The successful prosecution of the war would be good for the economy.""


Does this shed a little light on the motives for war?
---------------------------------------------------------------------

"Prior to the war, Iraq was pumping 2 million to 2.5 million barrels of oil a day, plus an unknown quantity of contraband crude. That's not far below its peak capacity of about 3 million barrels reached in the 1980s. Bush administration officials said before the war they hoped Iraq would resume pumping to capacity following Hussein's removal and within a few years enhance output to 5 million barrels a day."

But that is not good capitalism George, matter of fact that goes against your arguments for Seniors getting cheaper drugs from Canada. Guess why the Iraqis keep blowing up the oil pipelines? They are seeing right thru this BS.
---------------------------------------------------------------------

Nearly five months after the fall of Baghdad, it is Saudi Arabia that has staged an economic rebound, Iraq is mired in post-war disarray and US consumers face higher energy costs. According to the World Bank, average annual per-capita income in Saudi Arabia contracted by 1.1 percent between 1990 to 1999. But since the beginning of this year, as talk of regime-change in Iraq intensified and oil prices began their ascent to a pre-war peak of $40 a barrel, Saudi Arabia has earned some $50 billion in petroleum sales and is expected to raise about $85 billion for the year, according to the Riyadh-based Saudi American Bank.
The kingdom's economy is likely to grow by nearly 7 percent this year, its strongest performance in a decade, the country's stock exchange is up 55 percent, and its budget and current account are posting strong surpluses.

Every time another pipeline explodes or another soldier dies over there, the Saudis see $$$. Why would they even pretend to help stop this?

[stickdog]

7. What makes you think their own CIA trained agents aren't

the ones responsible for sabotaging the pipelines?

[Fovea]

8. Who could have possible predicted

that the Saudi's would do a thing like this.

Actually, it is as poppy hoped all along, to raise the price of oil.
Peak oil is not just about the ease of production.
It is more about the attitude of the producers.
Peak oil begins when they say it does, the consumer doesn't have a damn thing to say about it, as long as they are addicts.

The goal was to conquer the region and submit it to vasselage.
Welcome to the poppy bush plan to win voter approval for the plan.
It is called $3.50/gal oil. Complete the following sentence:
"When you've got em by the balls --"

[DoYouEverWonder]

11. Well that's a fine thank you

Considering the fact that we just finished pulling our troops out of their country yesterday!

Bandar should be in Guantanamo, not hanging with Cheney in WY. Bombing Iraq did nothing to protect us from terrorism. We have to kick them out of the WH first.

[tom_paine]

12. Sounds like the Saudis are working with their good friends the Busheviks

on this one.

Everyone makes a lot of money (except the Serfs of Amerika, and they don't count anyway).

I miss the Old Republic, but I have little faith that it will ever be restored.

Does that mean that I am going to give up trying? NEVER!

While their is still even a glimmer of hope WE MUST NOT GIVE UP!

[Nottingham]

14. This is result of Bush's Lunch with Saudi Prince

Lets make more Money out of the stupid Americans

:bounce:

[NekoChris]

15. This makes me very happy...

That I do not drive.

Hey, remember those SOLAR POWERED CARS? You always heard about?

And the ELECTRIC CARS?

And the WATER POWERED CARS?

And the HYDROGEN POWERED CARS?

I bet they sound like great ideas now huh?!

Maybe I should take out a loan and buy me a Segway with optional umbrella for rain.