Saudi output
Posted by WARREN MOSLER on November 1st, 2012
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November 1st, 2012 at 11:58 am
“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.”
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WARREN MOSLER Reply:
November 1st, 2012 at 3:58 pm
yes, but we produce flat out. we are not acting the swing producer
Reply
Ed Rombach Reply:
November 1st, 2012 at 5:03 pm
@WARREN MOSLER,
Not sure what you mean between producing flat out and being the swing producer.
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PJ Pierre Reply:
November 1st, 2012 at 5:21 pm
@Ed Rombach,
We are pumping at that we can, up to our limits. They supposedly are not at full productive capacity.
Ed Rombach Reply:
November 1st, 2012 at 8:03 pm
@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?
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WARREN MOSLER Reply:
November 1st, 2012 at 10:34 pm
true. the full employment deficit can be that much smaller if the trade gap shrinks.
November 1st, 2012 at 9:01 pm
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.
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WARREN MOSLER Reply:
November 1st, 2012 at 10:35 pm
they set price and let quantity adjust. they have no choice
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Fin Reply:
November 2nd, 2012 at 12:45 pm
@WARREN MOSLER,
but doesn’t sound like they are monopolists any longer.
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WARREN MOSLER Reply:
November 4th, 2012 at 7:06 am
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