2008-05-07 Saudi Oil Production

Saudi Oil Production

Still in full control of price.

5 Responses

  1. When is the fed going to change their forecasting model? Since they said their forecast called for price moderation, crude has gone up 25%.

  2. it will take a shift in net supply that lowers demand for their oil. I’d guess that means at least a 5 million bpd drop in demand or increase in supply from others.

    the only prospect i see for this kind of shift is pluggable hybrid cars that get 40 miles on their batteries before the motor comes on.

    And the reason these will catch on is that drivers don’t have to go the gas station nearly as much. For most it will be once every three months or so, probably, and people hate going to the gas stataion.

    problem is the first ones won’t be out for 2 years, and they it will take maybe 5 more years for their to be enough of them out there to bring crude demand down.

    and while they only shift energy demand away from crude towards coal or whatever else is powering the grid, there is no monopolist setting coal prices. yet…

  3. Why not the combo of nuclear power and all electric cars. At least for local commuting. Don’t know much about this, but since electric motors can power buses why not have em power our Hummers and Landrovers? Americans love to commute in their big SUV’s.

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