The Oil Drum

176 comments on DrumBeat: May 1, 2007

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PeakTO on May 1, 2007 - 2:24pm

Hi Robert,

I don't think the gasoline situation is directly related to Peak Oil either at the moment.

But one thing that does confuse me (re:KSA increasing production) is why did we draw so much from inventory in Jan and Feb 07(about 1MMBPD/80.5Million barrels in Feb)?

We can increase gasoline production, but if we are still drawing down crude inventory(OECD), isn't that going to squeeze eventually?

The crude inventory draw (OECD) is the area that concerns me most. So, to me, that is where the KSA question comes in, can they swing 1MMBPD to balance the equation!?

What do you see happening?

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Robert Rapier on May 1, 2007 - 2:43pm

The crude inventory draw (OECD) is the area that concerns me most. So, to me, that is where the KSA question comes in, can they swing 1MMBPD to balance the equation!?

What do you see happening?

I notice that the OECD has reduced their demand forecast for 2007. But, if the OECD inventories continue to come down, Saudi will be called upon regardless of what's going on in the U.S. But we aren't going to be calling on them unless we start pulling our own inventories down. I hope we see a situation this year where they are definitely called upon to supply more oil, because that will start to answer a lot of questions.