Monday, December 22, 2014

Oil slide continues- below $56.00

Following up on this post: Saudi/Kuwait: No oil output reduction even if others cut
Immediately after Saudi Arabia and company, the GCC, announce they have no intent to reduce output...............The GCC- Its member states are Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates

 Oil continues it's slide. As does the Canadian dollar. 

 Oil prices seemed to stabilize and the Fed reassured markets that it would go slow on raising rates.
But by Monday, oil was on its way downwards again. The West Texas Intermediate contract traded in New York had fallen $1.51 to $55.62 US a barrel and Brent Crude was down $1.07 to $60.30.
In a speech at an energy summit in Abu Dhabi on Sunday, Saudi Petroleum Minister Ali Naimi defended OPEC’s decision at its Nov. 27 meeting to keep its production levels unchanged.
“As a policy for OPEC, and I convinced OPEC of this, even Mr al-Badri (the OPEC secretary general) is now convinced, it is not in the interest of OPEC producers to cut their production, whatever the price is," Naimi was quoted as saying.
"Whether it goes down to $20, $40, $50, $60, it is irrelevant," he said, saying oil will not soon rise to $100 a barrel level.
Naimi said low prices might stimulate the world economy and denied OPEC is trying to push other producers, including U.S. shale producers, out of the market.
Hammering the concern home yet again....

First post of the day!

Bertrand Russell,1953: "Diet, injections & injunctions".. to produce that which is desirable to authority

    13 comments:

    1. Hi Penny,

      I was going to post this the other day, but I couldn't find any confirmation to back up the report that Saudi Arabia was tricked into fracking and is now unable to stop production to avoid the wells being flooded with sea water.

      But when I read that they will continue producing oil at current rates even if the price falls to 20 dollars a barrel, then maybe there really is something to this.

      Anthony

      http://www.zengardner.com/the-cias-global-financial-pearl-harbor-attacks/

      "Central Intelligence Agency director John Brennan’s long familiarity with Saudi Arabia, owing to the time he spent there as the CIA station chief in Riyadh in the 1990s and his knowledge of Saudi oil operations, has paid off. Petroleum industry insiders claim that Brennan’s agents inside Saudi Aramco convinced the firm’s management and the Saudi Oil Ministry to begin fracking operations in order to stimulate production in Saudi Arabia’s oldest oil fields. The Saudis, who are not known for their hands-on knowledge of their nation’s own oil industry, agreed to what became an oil pricing catastrophe which would not only affect Saudi Arabia but oil producing nations around the world from Russia and Venezuela to Nigeria and Indonesia.

      By pumping high-pressure salt water into older wells, some at a depth of three to six thousand feet, an inordinate amount of pressure was built up. The CIA’s oil industry implants knew what would occur when the fracking operations began. Due to the dangerously high water pressure, the Saudis were forced continuously pump oil until the pressure became equalized. That process is continuing. If the Saudis ceased pumping oil, they would permanently lose the wells to salt water contamination. In the current “pump it or lose it” situation, the Saudis are forced to pump at a rate that may take up to five years before they can slow down production rates to pre-glut levels.

      The corporate media, including the Bloomberg and Dow Jones virtual business news monopolies, issued news reports claiming that the Saudis agreed to keep production high at the November meeting of the Organization of Petroleum Exporting Countries (OPEC) in order to retain their market share amid increased U.S. oil production from fracking.

      The net result of the CIA-inspired fracking operations, which the Saudis were warned not to pursue by petroleum engineers working for some foreign-based firms like Schlumberger, is that there will be an oil supply glut for the next 5 years. The glut will be followed by a reduction in Saudi oil production unless new oil fields are brought on line. There is now a major push by U.S. and Canadian oil companies to bring online the Keystone XL pipeline from Canada to the United States to offset the expected sharp rise in oil prices in four to five years. But with Canada suffering financially from the drop in oil revenues, the Keystone XL project is also on financially shaky ground.

      The CIA operation to frack Middle Eastern oil fields was not only limited to Saudi Arabia. Oil industry sources have revealed that similar fracking caused over production problems in Kuwait and Iraq."

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      Replies
      1. Hi Anthony:

        Thanks for leaving the story and I did read it last night, but, lacked time to reply-

        It sounds a bit off IMO. Based on what little knowledge I have on this subject- I don't believe the Saudis have no clue about their oil business
        It is their business to know their business-
        I also don't see any reason for them to frack their fields because the type of oil they pump is the easiest/ low cost to pump. Hailing from Canada the Keystone pipeline looks to be a go- the tar sands can take the price drop from my reading- The drop in oil revenues could be that which affects Alberta or he could be referencing the tax per litre price charge which gets smaller as the cost of a litre gets smaller- that will leave Canada on shaky ground financially but our tyrants in charge will merely indebt us to bankers that much more because this is no democracy here

        I went to look at Zen Gardner to see who authored this piece and it is Wayne Madsen- Which made me even more leary.

        Over all you were right to wonder about the validity "I couldn't find any confirmation to back up the report that Saudi Arabia was tricked into fracking"

        Because I cant' find anything in the way of confirmation either


        Delete
      2. Hi Penny,

        I agree that the fracking story deserves to be filed until further evidence is provided. It does, however, fit bizarrely well with the reports of the Saudis not caring how low the price for a barrel of oil goes.

        Best wishes,
        Anthony

        Delete
    2. The details of the explanation are just so much mumbo jumbo. I say the story is misinformation.

      ReplyDelete
      Replies
      1. Definitely questionable without further verification

        Delete
      2. Hi Penny, in case you haven't noticed yet, nobody has resumed posting things on his church of nobody blog.
        Joyeux Noël
        gallier2

        Delete
      3. Gallier!!!!
        my friend- mon ami
        Joyeux Noël to you to!!!
        I saw Nobody had a new post up, read it and was going to comment- but- comments are closed- did you read what he wrote- he is contemplating suicide for goodness sake- I was floored when I read it
        Kikz has been around here and mentioned nobody was being cryptic and she was worried, with good reason it seem
        with good reason
        I hope he doesn't do anything like that- It's so cruel to those left behind
        We very recently had an incident to that affect not my family, but a neighbour, long, long time neighbour and it's devastating for their family and I tell you it shook me up a bit- the devastation of it
        the love denied, the child that will never know her dad, the mother that lost her child, it's really horrible

        Delete
      4. Hi Penny,

        yes, it made me sad. I had put the comment before I had completely read it. The uncanny thing is, he removed that entry in the meanwhile.

        Delete
      5. Mornin' gallier :)

        I know what you mean, it made me both sad and angry
        As in you tell us all these things you learned (in his post) and then your going to off yourself- take that knowledge and put it to good use, dammit!

        I see this morning after I read your comment that yes, the post is gone.
        what does that tell us?
        sigh

        Delete
    3. Hi Penny,

      PLease take a look at this. My comment was lost as I was typing so this time I'll just post the link. Very interesting! July this year.

      http://www.juancole.com/2014/07/undercut-fracking-problems.html

      File this one under E for ewps, at least as far as the export market for US fracked natural gas goes. The US natural gas industry has been leaning thishard on the Obama Administration to approve more overseas sales, but international fossil fuel giant Saudi Aramco has just announced big plans to go mano a mano with the US in the global natural gas market.
      The Saudi Aramco news was reported just yesterday by Bloomberg. Combined with two new studies that cast yet another harsh light on the risks of natural gas fracking in the US, it’s been a helluva week for an industry that has been touting itself as the best thing since sliced bread.

      Big News From Saudi Aramco

      You could practically hear the brakes squealing on the US natural gas export market when Bloomberg reported the news out of Saudi Aramco (that’s short for the state-owned Saudi Arabian Oil Company btw).
      To clarify, although there are substantial shale gas formations in Saudi Arabia, the Saudi Aramco announcement did not deal with shale gas fracking. It dealt with another type of unconventional gas formation.
      Here’s a nugget from that Bloomberg report, filed by reporter Wael Mahdi yesterday:
      Saudi Aramco is drilling in tight sands reservoirs where permeability and porosity is greater than that of shale formations but below that of conventional oil and gas bearing sands. “We do have shale, but shale will take a little bit more time because we need to go with the low-risk, high-rewards projects to get our revenue,” Kanaan said.
      The bottom line as reported by Mahdi: Saudi Aramco has come up with cost-effective ways to get at its tight gas and is now targeting a competitive price of $2.00 to $3.00 per thousand cubic feet.
      US oil exports are going to feel a ripple effect, too. The big picture for Saudi Aramco is to use some of the newly recoverable gas reserves domestically, freeing up more oil for export.

      ReplyDelete
      Replies
      1. Hi Penny,

        The previous post was from me, Anthony. I lost the post with my comments on the story.

        Delete
      2. Hi Anthony- Good Morning too btw
        I thought it was your comment- I am going to get around to the comments as soon as I get my postings done-
        bear with me
        thanks :)

        Delete
      3. Hi Anthony!

        finally I have the time to both read and respond And a belated Merry Christmas to you and your children- I hope the holiday went as well as possible?

        I went to the Saudi ARAMCO site and read a bit

        http://www.saudiaramco.com/en/home/news-media/news/going-beyond-conventional-approaches-to-fracking.html

        It definitely looks as if the Saudi`s are looking to expand into fracking

        A new team within the Aramco Research Center in Houston, USA, has been created to keep Saudi Aramco ahead of the development of production tools and techniques on hydraulic fracturing (“fracking”). The team supports the Production Technology of Saudi Aramco’s EXPEC Advanced Research Center (EXPEC ARC) by monitoring the latest advances in North America and conducting additional research and development.

        For Saudi Arabia, a current business focus is tight sand, tight carbonate and shale gas recovery. With strong indications of substantial shale and tight gas deposits, Saudi Aramco is currently exploring and appraising several prospects for unconventional gas within the Kingdom. The Unconventional Gas Initiative will contribute to the Kingdom’s growing domestic energy mix as the economy diversifies and new growth industries are developed.

        then the bloomberg article that is being quoted from

        http://www.bloomberg.com/news/2014-07-07/saudi-aramco-to-pump-tight-natural-gas-at-equal-cost-to-u-s-.html

        All the talk on fracking seems aimed to the future as opposed to the present day- it's interesting that the Saudi's are looking into this though and work closely with the Americans in that regard

        "The Kingdom needs to develop its shale and tight gas deposits to reduce the use of crude oil and other liquid fuels at power plants and free more oil for exports. Its shale plans, however, slowed down as the country lacks enough fresh water resources to use hydraulic fracturing, or fracking, to break the rocks and extract natural gas"

        Delete

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