Oil extraction rates

Jon Flanders jonathan.flanders at verizon.net
Sat Aug 16 21:21:15 MDT 2003


"Through June 2002-June 2003, according to the IEA, the OECD’s 3-biggest
oil producers, USA, Norway and UK, suffered a net loss of oil output,
mainly through depletion, of 0.801 Mbd. Several OPEC producers now
require very large investment spending simply to maintain export
capacities, faced by often fast-rising domestic oil demand and fewer or
no potentials for rapid increase of national production. There are
likely few major potentials for oil production increase outside the
Middle East and Russia, and the 5-year perspective for world demand
growth at current rates, and accelerated depletion on a worldwide basis,
indicate a rapid and certain end to Cheap Oil. 

It is therefore very questionable if non-OPEC supply will automatically,
surely and easily rise by 1.7 Mbd in the next 12 months, while it is
increasingly certain world oil demand will increase by at least this
figure – barring a severe and worldwide economic recession. 

The bottom line on oil exports from so-called New Iraq is that world
supply has lost at least 1.25 Mbd at a time when demand is increasing by
about 1.7 Mbd per year. At the same time many analysts in consumer
countries repeat the unsubstantiated claim that OPEC’s export offer
capacity is as high as 31.9 Mbd when more realistic data suggests it
will be difficult to achieve, then maintain more than 28.5 Mbd in the
next 5 years, assuming very large investments. "

Excerpted from:One Purely Evil Cartel oil exporters can target US$36-45
per barrel

Posted: Tuesday, August 12, 2003
By: Andrew McKillop 

http://www.vheadline.com/readnews.asp?id=10200

McKillop writes extensively on oil issues, a lot is posted on Venezuela
Electronic News, from which this was taken. His mantra seems to be that
oil prices should be set in the $60-$70 pb range which will right the
world economy. Which reminds me of those farmer supporters who call for
a fixed price for milk, "parity" to cure the ills of the dairy
producers. Milk prices are staggeringly low, by the way; $11.10 per
hundred pounds in June, which would have been considered very low back
in the eighties when farmers  were dumping milk on the ground.

This is the VEN  statement of purpose:

"Our editorial statement reads: 
VHeadline.com Venezuela is a wholly independent e-publication promoting
democracy in its fullest expression and the inalienable right of all
Venezuelans to self-determination and the pursuit of sovereign
independence without interference. We seek to shed light on nefarious
practices and the corruption which for decades has strangled this South
American nation's development and progress. Our declared editorial bias
is pro-democracy and pro-Venezuela ... which some may wrongly interpret
as anti-American. 
Roy S. Carson, Editor/Publisher Editor at VHeadline.co"

Jon Flanders






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