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step back on September 20, 2005 - 8:57am Permalink | Subthread | Comments top
Off topic question of the day:
Remember Deffyee's story about that day in 1971 when the Texas Railroad Commission lifted caps on Texas oil production? He went home and told his wife, "That old fool, Hubbert was right after all". It was Peak Day USA.

Well this 9/19/2005 story in Washington Post seems similar:
http://www.washingtonpost.com/wp-dyn/content/article/2005/09/18/AR2005091801010.html

Is this Peak Day OPEC/World?
(Damn, we did not make it even to Thanksgiving 2005.)

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crayz on September 20, 2005 - 12:02pm Permalink | Subthread | Parent | Comments top
Yep, they just killed the quotas. Article I read says the new oil will be coming as of October 1st, apparently just about all of it from the Saudis. Looks like the peak is ever closer
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Glenn on September 20, 2005 - 10:19pm Permalink | Subthread | Parent | Comments top
A cartel is only powerful if it restrains production. It loses this power at full production and therefore becomes irrelevant. Now any producer has the power to cause a spike in prices.
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Dave Cohen on September 20, 2005 - 11:06pm Permalink | Subthread | Parent | Comments top
Irrelevant!
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Rick on September 20, 2005 - 5:48pm Permalink | Subthread | Parent | Comments top
I had the same thought yesterday. The Railroad Commission dropped quotas when it was clear that all the oil was needed, and they gave up any ability to control prices. Sounds familiar. The situation is not wholly identical because OPEC will release heavy sour crude that there is less demand for.

I agree it's an important milestone. I can't recall who said it, but the quote was:"The good news is that OPEC doesn't control prices anymore. The bad news is that nobody does."

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Ben on September 20, 2005 - 5:57pm Permalink | Subthread | Parent | Comments top
I like their announcement that they will be building refinery capacity to help us out.

Like a drug dealer "I'm just trying to give you a hand"

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30 comments on More Tools for Rita

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