<Jay Hanson and Dieoff.org The Oil Drum Two quick political notes...>

167 comments on As Cantarell goes . . .

Comments can no longer be added to this story.

westexas on July 24, 2006 - 6:12pm Permalink | Subthread | Parent | Comments top
As I have previously noted, the Houston consultant (recommended by Saudi Arabia) at the PBS Peak Oil debate stated several times that exporters may be cutting back on their production--look at what the Saudis have already said, in justifying their approximately 5% reduction in production since December.

It may be that OPEC would rather be hated--by claiming that production declines are voluntary--than risk military takeovers, by admitting that world oil production has peaked.   This is the basis for incorporating major oil exporters into the major oil company/major oil exporter/energy analyst leg of the "Iron Triangle," i.e. their fear of their oil fields being seized.  

ExxonMobil can say that they need all of their cash flow to bring on new oil fields outside the Middle East, and the housing/auto/finance group can say that high oil prices are temporary.  So, go ahead an buy the large SUV, to drive the long commute, to the large mortgage--all advertised by the media group.

Comments can no longer be added to this story.
mr f on July 24, 2006 - 7:24pm Permalink | Subthread | Parent | Comments top
Your analysis, I fear, is sadly absolutely correct.

The fact that major oil producing nations and their dependents are stuck in a web of fakery and illusion is only indication of the house of cards falling all the harder.

This also, as mention a bazillion times here on TOD, has the added benefit of driving up prices further. And if there is no swing producer, then all the better--none of these countries can be punished through artificial price adjustments, simply because Washington no longer has the stroke to do so.

Just look at the desperation of Dick Cheney flying over to Kazakhstan in order to secure energy. We are indeed at the stage of using every possible option at our disposal to keep our imports plentiful and "cheap" (hah!).

Comments can no longer be added to this story.
tstreet on July 25, 2006 - 9:19am Permalink | Subthread | Parent | Comments top
Whether there is peak oil imposed by nature and economics or there is peak oil imposed by a cartel would lead to the same result, an imbalance between supply and demand leading to ever higher prices.  Unless, of course, one believes that these producers can be jawboned or forced to produce more or if people get the impression that shortates are just temporary because they are dictated by politics.

In any event, however, our "leaders" (do we actually have any) could announce that either way, we must decrease our consumption for the indefinite future, because we will have less oil and because climate change mandates a decrease in the consumption of all forms of energy.

Also, in any event, this news just reiterates the fact that the world's producers have us by the gonads and we need more than some silly ass Bush vision of hydrogen and ethanol  savings said nads in twenty years.

We could start by cutting our defense budget in half -- the half that clearly isn't making a dime's worth of difference in our ability to influence world events.

Comments can no longer be added to this story.

167 comments on As Cantarell goes . . .

Comments can no longer be added to this story.