Energy experts puzzled over oil prices
We will
express here the “Mystery” concerning rising oil prices. In late 1963 through 1964 there was a sudden
great spike in silver prices, Silver went up from about 1.25 an ounce to over $40.00
this drove the
This
warfare against the
So two
years or more years ago a second front was opened up against the
A few
weeks ago the King of
The
answer to this sudden change is the word coming to him that these Arab and
Muslim oil Jihadists would loose hundreds of billions that they have invested
in this Oil Jihad against the west if the price were to suddenly drop.
The
If the
US, Canada, Mexico, and the EU were to remove oil from their respective
mercantile exchanges and set oil to between $70.00 and $90.00 a barrel and make
each other their primary market this would indeed drive a blow to those who
have been manipulating world oil prices and more than likely Russia would join
in such an effort as it has land locked oil pipelines going into the EU.
By GEORGE JAHN, Associated Press Writer 1 hour, 1 minute ago
The comments by IEA chief Nobuko Tanaka,
OPEC chief and Algerian Energy minister Chakib Khelil and other industry leaders at the 19th
World Petroleum conference reflected the concern surrounding record oil prices
that seem ready to spike higher.
An IEA report released at the conference
confirmed what most
consumers fear: (This is an outright lie – consumers have no consideration
or knowledge of oil supply conditions) that supplies of oil will remain tight,
whether for cooking fires in the poorest countries or powering cars and
cooling or heating homes in the richest. And that's despite record prices and
reduced demand as costly crude dampens the world's oil hunger.
Reflecting the world's oil price doldrums,
light, sweet crude for August delivery rose 97 cents to settle at a new high of
$140.97 a barrel on the New
York Mercantile Exchange. Prices at one point rose as high as
$143.33, just 34 cents shy of Monday's trading record.
"We are clearly in the third oil price shock,"
declared Tanaka, comparing the effects to periods of soaring prices in the 1970s
and 1980s.
But he suggested there is less of a
likelihood of a quick fix this time.
"Those price peaks forced consumers
into saving oil" and oil companies to look for new wells, said Tanaka, but
now "the biggest energy
savings have been made (and) ... the easy oil outside (of) a few
countries has been found."
His agency's report said the world's estimated daily oil needs would rise from 86.87
million barrels this year to 94.14 million barrels in 2013 — less than
anticipated in its 2007 report because of skyrocketing prices.
The energy agency
predicted producers would be able to meet world needs — but noted that
supply will exceed projected demand only by a daily 2 million barrels, a
relatively thin cushion.
Tanaka said that tight supplies despite a
price surge that would normally lead to increased availability came as a
"shock."
His comments reflected the high-level bedevilment at the
meeting about what is causing prices to sizzle.
In Jeddah, Saudi Arabia, earlier this
month, the kingdom said it would add 200,000 barrels per day in July to a
300,000 barrel per day production increase it first announced in May, raising
total daily output to 9.7 million barrels. Production increases normally check
prices, but the market has shrugged off the Saudi gesture and set several new
records since.
Khelil, the OPEC
president, offered no solace to consumers.
"We are very uncertain about the oil
prices since it's highly volatile and we don't really
know whether it is going to be stabilizing or going to lower levels," he
told delegates. "But everybody agrees that oil prices are too high."
"There is a lot of uncertainty about
demand," Khelil said. "Consequently there
is a lot of uncertainty about the decision of investing" the tens of
billions of dollars needed to make additional crude and refined supplies
available.
He identified the main driver of prices as
the weak U.S. dollar and the linked subprime crisis
in
Urging the world to brace for a
"really big reshuffle" in energy expectations, Christophe de Margerie, CEO of French energy giant Total SA, said he
expected oil production to plateau in just 12 years at 94 million barrels a day
— less then 10 million barrels more than available now. And he warned the
forecast was optimistic.
"We will have to fight against the
natural decline of (present) oil fields," he told the same forum Khelil attended. "It will not go smoothly."
Producers and refiners in the Spanish
capital are also looking to find answers not only on how to ensure stable
supply, but also on doing it in a way that minimizes emissions of the greenhouse gases
believed to cause global warming.
Still the primary concern at the meeting
was over availability and prices that have been bouncing from record to record
over the past few months — a worry echoed by de Margerie.
Consumers worldwide "expect a better
environment," he said. "But they expect first access to energy."