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26 comments on Playing detective with Saudi production numbers

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MicroHydro on December 16, 2005 - 5:16am Permalink | Subthread | Parent | Comments top
Bingo  steverino!  Demand destruction is a fraud.  US consumption broke a new record in the week ended December 9th.  Like everything else in the US, this is based on deficit spending - tapping the SPRs of the US, Europe and Japan.  The Saudi wells are in serious trouble, up to 90% water cut in some.  They need to throttle back, at the same time that the SPRs will need refilling.
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pbrewer on December 16, 2005 - 11:56am Permalink | Subthread | Parent | Comments top
I don't think there's any evidence that demand destruction didn't happen. Certainly no evidence that it's a "fraud."  (Who is defauding whom?)

Gasoline prices at the pumps here dropped to $1.999 during the week ending December 9th, so I'm not a bit surprised that gasoline consumption spiked back up.

It remains to be seen what the quantity demanded will be at various prices (and how it changes over time if we see prices move higher, but then stay relatively stable at some higher price).  I'm actually really interested to see what consumption choices people make when faced with higher prices.

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26 comments on Playing detective with Saudi production numbers

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