OPEC has concerns about future oil demand

uscitizen

uscitizen

Villified User
OPEC has concerns about demand: president
Jul 1 04:28 AM US/Eastern


The president of OPEC, Chakib Khelil, said on Tuesday that the oil cartel had concerns that future demand for oil might not be strong enough to justify investment to boost oil production.

"The concern we have is about the security of demand," Khelil, who is also Algeria's energy minister, told delegates at industry event the World Petroleum Congress in Madrid.

He said there were "big uncertainties" about making huge investments in infrastructure to increase output from OPEC member countries, which pump about 40 percent of world oil.

http://www.breitbart.com/article.php?id=080701082809.h8x9bsrv&show_article=1
 
uscitizen said:
OPEC has concerns about demand: president
Jul 1 04:28 AM US/Eastern


The president of OPEC, Chakib Khelil, said on Tuesday that the oil cartel had concerns that future demand for oil might not be strong enough to justify investment to boost oil production.

"The concern we have is about the security of demand," Khelil, who is also Algeria's energy minister, told delegates at industry event the World Petroleum Congress in Madrid.

He said there were "big uncertainties" about making huge investments in infrastructure to increase output from OPEC member countries, which pump about 40 percent of world oil.

http://www.breitbart.com/article.php?id=080701082809.h8x9bsrv&show_article=1
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This is the type of bullshit that we are going to continue to be victims of as long as we refuse to tap our own resources. If we don't then we are dependent upon OPEC/Russia etc... to do it for us.... and you know how they all have our best interests at heart.

OPEC knows if we refuse to drill and they refuse to drill... oil prices will simply continue to go higher and we will continue to send more and more of our money over to them.
 
OPEC is not alone in that mindset SF, Bif Oil has the same mindset.
Why are they not drilling leases they have owned for 30 years, but do not want anyone else to drill them either ?
 
uscitizen said:
OPEC is not alone in that mindset SF, Bif Oil has the same mindset.
Why are they not drilling leases they have owned for 30 years, but do not want anyone else to drill them either ?
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Please show me examples of the leases they have had for 30 years, that they have not drilled. My guess is they bought long term leases on land that ended up not having oil that was recoverable. The leases they have in the Gulf are predominantly in the exploration stage... which is still classified as "idle".

But I understand your confusion, the left wing talking points are distributed assuming you won't question their validity.
 
I just posted on on here last week about EXXON sueing Alaska over leases Exxon had for over 30 years and did not drill.
Alaska was wanting to release them to someone who would drill them.
 
Obfuscate said:
OMG ITS GOING TO CAUSE MAJOR DEFLATION!!!!!

LOL
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No moron.... when expected future supplies are limited it is going to cause INFLATION. Not deflation.

But yes, I know, you don't think higher oil prices effect the pricing of every single manufactured good in the world. We understand your strict monetarist bullshit.
 
Chakib is the man.
Leases older than 10yrs are generally tied up in litigation. It's a drill it by 10 or lose it in many cases.
Imagine that supply and demand coming into an investment decision. Aren't they suppose to just function to make turbo-libs happy.
SF isn't right on much but he's right on oil.
 
Superfreak said:
No moron.... when expected future supplies are limited it is going to cause INFLATION. Not deflation.

But yes, I know, you don't think higher oil prices effect the pricing of every single manufactured good in the world. We understand your strict monetarist bullshit.
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I thought this thread was about a decrease in demand? You and Topper basically claimed that demand has doubled {prices have} in the last year cause of China and that is causing inflation. Now were talking a decrease in demand it would work opposite in your weird economic mind.

What do you buy your oil with? I would assume US dollars. What can these oil producing companies/countries do with US dollars? Either spend them here or trade them at the current FLOATING exchange rate.

What is gained in one area is lost in another.

Give me ONE example in history of Inflation without an increase in the money supply. We have been creating inflation at much too fast a pace since 02 and inflation destroys wealth and growth. You seem to think it happens for other odd reasons you have yet been able to explain or give examples of.
 
You guys like to rip Monetarism but do you really believe and group of Keynesians in suits should be who dictates the interest rates? Monetarism really is a steady growth of the money supply slightly above historic rates of growth. Interest rates would be determinned by the demand for money, not what a group of suits think the market interest rates should be. Do you really believe Monetarism isn't the best Federal Reserve interest rate policy?
 
Obfuscate said:
I thought this thread was about a decrease in demand? You and Topper basically claimed that demand has doubled {prices have} in the last year cause of China and that is causing inflation. Now were talking a decrease in demand it would work opposite in your weird economic mind.

What do you buy your oil with? I would assume US dollars. What can these oil producing companies/countries do with US dollars? Either spend them here or trade them at the current FLOATING exchange rate.

What is gained in one area is lost in another.

Give me ONE example in history of Inflation without an increase in the money supply. We have been creating inflation at much too fast a pace since 02 and inflation destroys wealth and growth. You seem to think it happens for other odd reasons you have yet been able to explain or give examples of.
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You really are retarded. The article stated that OPEC was going to limit SUPPLY because they felt that Demand wouldn't support an increase. Which is moronic given that oil demand has continued to increase worldwide for the past four decades plus. This is about supply constriction, which is inflationary.

Again, as stated yesterday.... Monetary policy will continue to effect inflation as well. No one is suggesting that oil prices are increasing without a monetary effect you twit. As stated 101 times in the other thread, monetary policy is the primary force. It has most certainly driven the price of oil higher due to loose policy deflating the value of the dollar.

But your ignorant... if one sector goes down and another goes up so it washes out... argument is just that... ignorant.

Answer this twit.... do higher oil prices effect the cost of production of the vast majority of goods produced in the world? It pushes prices UP. It causes companies to either cut profit margins or cut costs elsewhere. IT is inflationary. Higher oil prices result in a higher cost of production of damn near everything.

Quit clinging so desperately to a strict monetarist point of view. Not even Friedman thought as you did.
 
Obfuscate said:
You guys like to rip Monetarism but do you really believe and group of Keynesians in suits should be who dictates the interest rates? Monetarism really is a steady growth of the money supply slightly above historic rates of growth. Interest rates would be determinned by the demand for money, not what a group of suits think the market interest rates should be. Do you really believe Monetarism isn't the best Federal Reserve interest rate policy?
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For the final time moron... I am not a Keynesian. Friedman was correct in that monetary policy will always be the primary factor in inflation. But it is NOT the SOLE factor in inflation. That is the point you fail to grasp.
 
Superfreak said:
Please show me examples of the leases they have had for 30 years, that they have not drilled. My guess is they bought long term leases on land that ended up not having oil that was recoverable. The leases they have in the Gulf are predominantly in the exploration stage... which is still classified as "idle".

But I understand your confusion, the left wing talking points are distributed assuming you won't question their validity.
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hey fascist. They pay congress NOT to allow drilling in anwr, so prices will remain high.
 
Superfreak said:
Answer this twit.... do higher oil prices effect the cost of production of the vast majority of goods produced in the world? It pushes prices UP. It causes companies to either cut profit margins or cut costs elsewhere. IT is inflationary. Higher oil prices result in a higher cost of production of damn near everything.

Quit clinging so desperately to a strict monetarist point of view. Not even Friedman thought as you did.
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I've answered it 10 times already, the deflationary forces on what you can't spend even it out. I went further on how the exchange rate plays in being that the extra dollars spent on oil in other countries must be respent here or exchanged at a floating exchange rate. You fail to grasp those points. MV = PT. I don't think you've read much on Friedman if you keep claiming he agrees with points that he was famous for being against.
 
Superfreak said:
For the final time moron... I am not a Keynesian. Friedman was correct in that monetary policy will always be the primary factor in inflation. But it is NOT the SOLE factor in inflation. That is the point you fail to grasp.
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You believe in Keynesian nonsense so I assume your a supporter. If you were a supporter of the Chicago School or the Austrian School you wouldn't make such points about stuff that's been discredited and has no historical backup.
 
Obfuscate said:
You believe in Keynesian nonsense so I assume your a supporter. If you were a supporter of the Chicago School or the Austrian School you wouldn't make such points about stuff that's been discredited and has no historical backup.
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Again, you try to paint your ignorant strawman with lipstick in the hopes that it will become more attractive. Again, you wouldn't make such an assertation if you actually had the ability to comprehend what Friedman taught.
 
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