Production levels
December 23rd, 2007 at 06:33pm
Under China Oil+ Crude oil+ Historical oil prices+ Middle East+ OPEC+ Oil+ Oil politics+ Oil price+ Production levels
The price of oil was well low at $25/barrel in late 2003 but jumped to double at whooping $60/barrel in the mid 2005. There was an uncontrolled change in the price of oil in most of times since 2005 to 2006 with some high and downs but settled at around $50-$60/barel in the early 2007. But this was not enough so it raised more above the price of $92/barrel in late 207 and ended up at about $99.29 in NYMEX futures in November end of 2007.
This clearly shows that oil prices has been increasing by passing years and the price tag of $100/’ barrel is clear to cross in the year 2008. Perhaps the price may increase above that if there are political conflicts in Middle East or any more OPEC production cuts. This uncertainty in the oil prices shows the indication of inflation of 1980 which was led to an economic recession. There are many philosophies that has attributed that US economic and political factors like UR-Iran conflict, North Korea Missile Launch, Israel- Lebanon crisis and decreasing US oil reserves are some determine factors of international oil prices.
There are many reasons to decrease in supply of oil that is main factor being increasing oil prices. The demands and supply policy of economics makes it true as if when ever the oil supplying countries like Iran and Saudi Arabia cut down the oil supplies then that is going to bring a surge in price in international market. The conflict in Middle East is the major reason behind this and even outside Middles East countries like Venezuela and other African countries producing oil have been facing local unrest like strikes and civil wars that has forced for decrease in oil supplies. Moreover the increasing terrorism by certain faction of people in oil rich countries has added to this price increase of oil.
A recent survey shows that the total supply of oil in recent times is 83 million barrel per day which is more than any other time in the history but the speculation that the a major Peak oil situation is nearing and a reducing oil supply is just in the near future has created a panic situation in the international market. Few secondary factors like OPEC supply cut and decreased value of dollar is too important reason for sudden increase in oil prices.
By Oilism.com
December 20th, 2007 at 05:30pm
Under OPEC+ Oil+ Oil Theory+ Oil politics+ Production levels+ peak oil
Peak oil theory or normally known as Hubbert Peak theory states that the future word production of oil with increasing in near years and again decline at the same rate until the reserves are exhausted. This Peak Oil theory suggest the way to find out the current reserves capacity and its duration to exhaust but it has also been disregarded as mere assumption because earlier theory on similar subjects could not state the real peak time and failed without any calculations. The theory tells that when crude oil reserves starts using the similar amount of water used to extract oil then that reserve starts exhausting and fails in near future.
This theory has been successful to determine the US oil peak time which led to a decline in oil production in United States in 1971. Since then, OPEC has been determining the oil prices in international market which had led to a major oil crisis in 1973. After the US reserves reached its peak many other countries to follow the trend including UK’s north seas which peaked in 1990, Mexico’s national oil company and China’s two major oil reserves are on decline. This has created a sudden decrease in international oil supply. But this has not created a huge panic situation because the recent finding of oil reserves in India and other countries has balanced the demand and supply of oil in markets.
It is actually very difficult to determine the time for peak of any crude oil reserve due to the unreliable accounting of oil producing countries oil reserves and uncertain production data. Some economist have said the years 1989,1995 and 1995 -2000 to be the major years of oil peak but those failed to prove because of unavailable data. Now some economist have a speculation that 2007 might be the peak year of oil and some years later for natural gas but this cannot be proven unless the reserves exhaust completely.
Whatever be the speculation of peak oil theory, the general idea is that crude oil is reducing in quantity, all around the world and unless an alternative solution is not found, the future of world remains slightly uncertain over oil prices.
By Oilism.com
December 15th, 2007 at 06:29pm
Under China Oil+ Crude oil+ Middle East+ Oil industry+ Production levels
There have take place several global energy crisis’s that affected the oil price. For example in 1973 a large selection of the OPEC nations forced an oil export embargo. This oil embargo was organized as a protest against the Western help for Israel during the Yom Kippur War. In two years time crude oil prices rose more than 400% from $3.00 to $12.17.
In 1979 the worldwide oil market was focused on the Iranian revolution causing an another future energy drama followed by a 35% peak in crude oil prices only ten years later caused by the Gulf War. Around the millennium year 2000, crude oil prices got a boost by high fuel taxes and mass protests in the United Kingdom organized against the UK oil industry. From 2003 up till now late in 2007, crude oil futures broke record after record as the United Stated was involved in the Iraq War. The increasing demand (hunger/addiction) for crude oil in China, India, Russia and the United States caused the upward pressure on oil prices. Additionally the recent fall of the dollar made crude oil cheap for countries trading in an other currency. The dollar drop helped the crude oil price above the $95, late December 2007.
Crude oil is the #1 resource in the worldwide resource usage. Oil is consumed in significant large quantities by us people. Although you maybe think you as individual you don’t but you do! Drive your own vehicle? Do you live in a house or do you frequently use public transportation like a bus? This all means you do rely on crude oil. The crude oil prices are volatile of which the cause can be found in the supply and demand curve for crude oil. Finally sentiment and expectations playing a major role on oil markets. The latest global warming concern resulted in a downwards adjustment of crude oil demand forecast based on warmer winters.
By Oilism.com
December 3rd, 2007 at 06:33pm
Under Middle East+ OPEC+ Production levels+ energy prices
THE OPEC does not want raise oil production. According to the OPEC there is no shortage to oil at this stage.
90 dollars
THE OPEC, the organisation of oil exporting countries, have decided not to increase oil production levels at this moment especially now crude oil prices decreased up to under the 90 dollars a barrel. This has been communicated by OPEC ministers just for the beginning of the meeting in Abu Dhabi.
No Oil shortage
Spokesmen from among others OPEC countries like Saudi Arabia, Libya and Qatar also agree that the market shows no proof of a shortage for oil. According to the ministers there is nothing wrong with oil supplies controlled by OPEC, although crude oil prices are still relatively high.
By Oilism.com
December 3rd, 2007 at 06:23pm
Under OPEC+ Production levels
Saudi oil minister finds crude oil unfair priced.
According to the Saudi oil ministerAl-Naimi there is a sufficient supply of crude oil to meet to the demand at this moment. At current levels the price of crude oil is too volatile and unfairly because of the supply demand ratio. Al-Naimi saids this yesterday on an energy congress in Singapore.
Production
Al-Naimi did not want discuss the question if the OPEC will raise production levels because this wil be decided next week. The organisation of Oil Producing Countries meets then in Abu Dhabi. High on the agenda is the current crude oil price which reached last week a record of 99.29 dollar. The price of a barrel of 150 litres of crude oil has meanwhile sunk back down to approximately 94 dollars a barrel.
By Oilism.com
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