OPEC production

[charrison]

Originally posted by: OokiiNeko
[
How would I do that? Sell more gas.

How would I sell more gas? Cut the price under the competition.

Is that happening??????

?

Yes it is happening, it just takes time. Rig count in the US is at 22 year high. Brazil has leased 3/4s of the worlds offshore rigs to drill its new offshore fields. New supply is coming online, it just takes time.

 

[charrison]

Originally posted by: lupi

Originally posted by: blackangst1
Come on Dave no one is saying OUT of oil. If production is flat, its flat. Thats all there is to it.

But if they are saying we are making X million barrels per day and are using X million +1 million barrels per day, shouldn't someone be out; otherwise how do you explain the supply deficit.

It is explained with higher prices. When supply catches up or demand drops, prices will come down.

 

[lupi]

Originally posted by: charrison

Originally posted by: lupi

Originally posted by: blackangst1
Come on Dave no one is saying OUT of oil. If production is flat, its flat. Thats all there is to it.

But if they are saying we are making X million barrels per day and are using X million +1 million barrels per day, shouldn't someone be out; otherwise how do you explain the supply deficit.

It is explained with higher prices. When supply catches up or demand drops, prices will come down.

If you have 10 barrels for sale and I need to buy 15; what amount of money will cause those 5 additional barrels to appear.

 

[LostUte]

Originally posted by: lupi

Originally posted by: blackangst1
Come on Dave no one is saying OUT of oil. If production is flat, its flat. Thats all there is to it.

But if they are saying we are making X million barrels per day and are using X million +1 million barrels per day, shouldn't someone be out; otherwise how do you explain the supply deficit.

It is possible to run a deficit if oil stocks (as in inventories, not shares of a company) are being run down. Eventually, prices have to increase until a deficit no longer exists.

 

[charrison]

Originally posted by: lupi

Originally posted by: charrison

Originally posted by: lupi

Originally posted by: blackangst1
Come on Dave no one is saying OUT of oil. If production is flat, its flat. Thats all there is to it.

But if they are saying we are making X million barrels per day and are using X million +1 million barrels per day, shouldn't someone be out; otherwise how do you explain the supply deficit.

It is explained with higher prices. When supply catches up or demand drops, prices will come down.

If you have 10 barrels for sale and I need to buy 15; what amount of money will cause those 5 additional barrels to appear.

A price high to either kill demand for 5 barrels or to find 5 more barrels to sell.

 

[Siddhartha]

I did a search on Oil reserves and Wiki has a chart, see link, listing oil producing countries and their reserves.

 

[OokiiNeko]

Telling everyone you are running out would be a great way to drive up the price.

Kinda like saying diamonds are hard to dig out of the ground.

Or your memory stick resin plant caught on fire.

Or Social Security is broke.

 

[dmcowen674]

Originally posted by: charrison

Originally posted by: lupi

Originally posted by: blackangst1
Come on Dave no one is saying OUT of oil. If production is flat, its flat. Thats all there is to it.

But if they are saying we are making X million barrels per day and are using X million +1 million barrels per day, shouldn't someone be out; otherwise how do you explain the supply deficit.

It is explained with higher prices. When supply catches up or demand drops, prices will come down.

Where have they run out?

All the oil depots are full and have been for 9 years.

Including the U.S. Military reserve is at 97% when they stopped filling it.

How much more do you need?

 

[Siddhartha]

Originally posted by: Siddhartha
I did a search on Oil reserves and Wiki has a chart, see link, listing oil producing countries and their reserves.

Oil prices

I am looking for information on the demand for oil to get an idea how much of the current price for oil is due to supply, demand, and speculation.

 

[lupi]

Originally posted by: charrison

Originally posted by: lupi

Originally posted by: charrison

Originally posted by: lupi

Originally posted by: blackangst1
Come on Dave no one is saying OUT of oil. If production is flat, its flat. Thats all there is to it.

But if they are saying we are making X million barrels per day and are using X million +1 million barrels per day, shouldn't someone be out; otherwise how do you explain the supply deficit.

It is explained with higher prices. When supply catches up or demand drops, prices will come down.

If you have 10 barrels for sale and I need to buy 15; what amount of money will cause those 5 additional barrels to appear.

A price high to either kill demand for 5 barrels or to find 5 more barrels to sell.

Which means there really isn't a demand and we aren't under supplied. Adjusting the price alters the curves. you could say that we are 100 billion barrels per day under supplied assuming each barrel cost a buck fifty, but that doesn't mean we are actually under supplied and expecting to see gas pumps go empty any more than the current "under supplied" condition.

 

[charrison]

Originally posted by: lupi

Originally posted by: charrison

Originally posted by: lupi

Originally posted by: charrison

Originally posted by: lupi

Originally posted by: blackangst1
Come on Dave no one is saying OUT of oil. If production is flat, its flat. Thats all there is to it.

But if they are saying we are making X million barrels per day and are using X million +1 million barrels per day, shouldn't someone be out; otherwise how do you explain the supply deficit.

It is explained with higher prices. When supply catches up or demand drops, prices will come down.

If you have 10 barrels for sale and I need to buy 15; what amount of money will cause those 5 additional barrels to appear.

A price high to either kill demand for 5 barrels or to find 5 more barrels to sell.

Which means there really isn't a demand and we aren't under supplied. Adjusting the price alters the curves. you could say that we are 100 billion barrels per day under supplied assuming each barrel cost a buck fifty, but that doesn't mean we are actually under supplied and expecting to see gas pumps go empty any more than the current "under supplied" condition.

Higher prices is what keeps the gas pumps from going dry. Higher prices kills the extra demand and makes sure those that really need the resource, have the resource.