OPEC not expected to raise production despite record-high oil prices

[Sub Atomic]

Source: Source: Associated Press

By William J. Kole
ASSOCIATED PRESS

4:28 a.m. March 4, 2008

VIENNA, Austria – OPEC has virtually ruled out pumping more oil to ease record-high prices, key oil ministers signaled Tuesday on the eve of a cartel meeting.

Chakib Khelil, president of the Organization of Petroleum Exporting Countries, said the 13-nation group is shying away from boosting production because of the U.S. economic slowdown, political turmoil in the Middle East and expectations of slackening global demand for crude.

On Monday, oil surpassed the all-time record of $103.76 a barrel when adjusted for inflation. The previous record was $38, set in 1980 at the height of the U.S.-Iran hostage crisis. Oil held steady well above $102 in Asia trading Tuesday after nearly hitting $104 a day earlier.

“Because of the economic slowdown in the United States – which is affecting world economic growth and world demand on oil this year – I don't think OPEC will consider increasing its production,” Khelil told reporters. “Stocks are very high ... and we are going to have less demand in the second part of the year.”

Read more: http://www.signonsandiego.com/news/business/20080304-0428-opecmeeting.html

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But..but...but...

I thought Dubya would use his capitol to get the OPEC nations to "open the spigots."


Bush In 2000: Bush Blamed Clinton Administration For High Gas Prices; Promised "Immediate Relief" By Using His "Capital" With Saudis And Kuwaitis. "Campaigning for president in a state particularly hard-hit by high gasoline prices, Texas Gov. George W. Bush on Tuesday blamed the nation's predicament on the Clinton administration, which he said is operating without an energy policy. "This is an administration that is hoping the issue goes away,' Bush said. ... 'The vice president seems to forget who's been in office for seven years,' Bush said. 'This is an administration that has been in charge, and the price of gasoline has risen steadily since they've been in office.' Asked what he would do as president to address the price at the pump, Bush said he would confer with oil-producing allies and ask them to pump more crude. 'I would use the capital my administration will earn with the Kuwaitis or the Saudis, to convince them to open up the spigot,' Bush said. 'That's where we will get immediate relief.'"

[meegbear]

1. Thank God I bought that GEO back in 2002 ....

38MPG couldn't come at a better time.

[Sub Atomic]

2. Good for you meeg.

My '99 Saturn still gets 30+ highway so I don't plan on getting rid of it anytime soon.

[tanyev]

3. Don't forget the jawboning.

Bush in 2000: U.S. Needs To "Jawbone" OPEC Members. "What I think the president ought to do is he ought to get on the phone with the OPEC cartel and say we expect you to open your spigots...And the president of the United States must jawbone OPEC members to lower the price."

http://www.democrats.org/a/2006/04/bushs_ever-chan.php

[Sub Atomic]

4. I remember that very well.

Dumbass was criticizing Clinton for $1.50 gas.

Remember Cheney's infamous remarks? To paraphrase: High fuel prices are the sign of a failed administration.

Got that right.

[NickB79]

5. Personally, I don't think they CAN increase production

I'm of the opinion that most of the OPEC nations have tapped out any abilities they have to expand production. And if they ever decide they have to cut production, heaven help us all.

[cliss]

6. (pssst) I'll share a secret.

The OPEC oil producing countries can't increase production. In particular, Saudi Arabia is pumping at full capacity and they can't increase any more.
The Ghawar Oil Field I believe has been the most oil gusher ever. That thing just kept pumping it was amazing.
However, these past few years they've been pumping salt water into the oil field to force out more oil. They've ended up damaging the oil field, and production has peaked.

Which brings me to my next topic: PEAK.

[roamer65]

7. Some OPEC members do need to cut production.

Overpumping causes the honeycomb-like structure that contains crude oil to collapse. It is very likely that quite a bit of Ghawar's oil has been lost due to overpumping.

[gratuitous]

8. Well, you just wait until Commander Guy jawbones them

You'll see who's in charge of stuff then, boy.

[Q3JR4]

9. Hmmm... Kinda glad I don't drive. n/t.