Saudi output

See attached Saudi output 9.8mpd for October, unchanged from Sep

The question remains, are they at their limits?

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10 Responses to Saudi output

  1. Ryan says:

    If 10 or 11 mln bbls is their capacity, they have been going full tilt since the Arab spring. Their currency is pegged to the dollar isn’t it? When they radically increased fiscal spending, they had to increase production, didn’t they?

    I’m curious to see if they rein in production after the election to manage growing inventories round the world amid soft prices.

    Reply

    WARREN MOSLER Reply:

    they set price and let quantity adjust. they have no choice

    Reply

    Fin Reply:

    @WARREN MOSLER,

    but doesn’t sound like they are monopolists any longer.

    Reply

    WARREN MOSLER Reply:

    right, if they don’t have excess capacity they can’t keep prices from going up by sustaining their posted price for all buyers at the margin

  2. Ed Rombach says:

    “See attached Saudi output 9.8mpd for October, unchanged from Sep

    The question remains, are they at their limits?”

    That could soon be a moot issue.

    http://www.dallasnews.com/business/columnists/jim-landers/20121030-will-the-u.s.-lead-the-world-in-oil-production.ece

    “The forecast showing the U.S. eclipsing the Saudis and the Russians comes from the U.S. Energy Information Administration, a branch of the Department of Energy. EIA shows “total oil supply” in the U.S. at the end of 2011 neck-and-neck with the Russians and closing in on the Saudis.
    EIA’s data shows the Saudis finished 2011 with an average of 11.153 million barrels a day of oil production. Production in the U.S. was 10.141 million barrels a day.”

    Reply

    WARREN MOSLER Reply:

    yes, but we produce flat out. we are not acting the swing producer

    Reply

    Ed Rombach Reply:

    @WARREN MOSLER,

    Not sure what you mean between producing flat out and being the swing producer.

    Reply

    PJ Pierre Reply:

    @Ed Rombach,

    We are pumping at that we can, up to our limits. They supposedly are not at full productive capacity.

    Ed Rombach Reply:

    @WARREN MOSLER,

    OK. Assuming the U.S becomes a net exporter of oil/nat gas, it will reduce the trade deficit by that much. By extension it also means that the federal budget deficit can also be that much smaller….. yes?

    Reply

    WARREN MOSLER Reply:

    true. the full employment deficit can be that much smaller if the trade gap shrinks.

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