<Saudis announce oil production increases...again...and again...and again... The Oil Drum Australia’s Oil-Based Energy Security>

72 comments on The devil is in the production details of Saudi Arabia

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SamuM on June 23, 2008 - 4:19am Permalink | Subthread | Comments top

It's probably non-trivial to get, but it would also be interesting to see the Production and domestic KSA consumption data for Arabian heavy vs Arabian light as a function of time (perhaps even including condensates/NGL).

The price difference alone between Arabian light and Arabian heavy tells us very little, I'm afraid.

If most of the upcoming production for the next year or so is of light or very light category (ref: table 2), then that is slightly promising, fwiw. Unless of course, most of it were to be consumed domestically within the KSA (?).

However, almost everything in the table after 2009 is heavy crude, the stuff that isn't going down so well with the buyers/refineries these days, if I'm not mistaken.

What have been the near-to-mid term historical trends of Arabian Heavy vs Arabian Light production/domestic consumption? Anybody have old guesstimate data on these?

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karlof1 on June 23, 2008 - 11:14am Permalink | Subthread | Parent | Comments top

I found the price information in Jerome's article of interest. Saudi is not offering a discount for their heavy or sour as one might expect.

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BobCousins on June 23, 2008 - 2:40pm Permalink | Subthread | Parent | Comments top

I actually wouldn't expect them to increase their discounts. Why would they undercut the competition, when there is no competition?

A guy goes to the butchers to buy a chicken...

"How much for a chicken?"
"$4 each" says the butcher.
"But they are only $1 at the supermarket"
"Why not go to the supermarket then?"
"Because they are sold out"
"Sir, when I am out of stock, my chickens are also $1 each".

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72 comments on The devil is in the production details of Saudi Arabia

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