Opec is pumping 163 million bpd more than its

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Unformatted text preview: y added to evidence that Saudi Arabia is showing no sign of changing its policy of high oil output to support the world economy, despite a fall in crude prices in June below $90 a barrel from near $130 in March. "I don't see Saudi Arabia cutting production by very much until the Iranian embargo situation is clarified and because of concern about global economic growth," said Paul Tossetti, senior energy adviser at PFC Energy. Supply from the 12-member OPEC has averaged 31.63 million bpd as the end of the month approaches, down from a revised 31.70 million bpd in May, the survey of sources at oil companies, OPEC officials and analysts found. Production is down only slightly from its highest in four years. OPEC pumped 31.75 million bpd in April, the highest since September 2008, based on Reuters surveys. OPEC is pumping 1.63 million bpd more than its official ceiling of 30 million barrels per day (bpd), despite agreeing to stick to that target at a June 14 meeting. With Iranian output falling, other members are seen as unlikely to implement large cutbacks. "Ultimately, as demand seasonally rises in the summer and increasing volumes of Iranian oil come under embargo, the likelihood is that OPEC will only need to marginally adjust production lower," said Harry Tchilinguirian, head of commodity markets strategy at BNP Paribas in London. 88 Oil DDW 2012 1 Link Overview 89 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 1. The plan rapidly accelerates our shift to alternative energies – That makes oil irrelevant in our strategic calculations, resulting abandonment of Southwest Asia and Saudi Arabia – We won’t intervene in conflicts and regimes and promote liberalism, feeling freer to criticize tyrannies and monarchies like Saudi Arabia, that’s Miller 6-28 – That would signal to Saudi Arabia we are unconcerned and disconnected from their interests 90 Oil DDW 2012 1 Link – Hydrogen 91 Last printed 9/4/2009 7:00:00 PM Oil DDW 2012 1 OPEC would suffer in a hydrogen transition Blanchette Deputy Chief Engineer for Army Programs at the Software Engineering, 08 Stephen Blanchette Jr., Deputy Chief Engineer for Army Programs at the Software Engineering, 08, [“A hydrogen economy and its impact on the world as we know it,” Energy Policy 36 (2008) 522–530, ideas.repec.org/a/eee/enepol/v36y2008i2p522-530.html] E. Liu In 1976, Sheikh Ahmad Zaki Yamani, then oil minister of Saudi Arabia, said, ‘‘The big powers are seriously trying to find alternatives to oily.We hope to God they will not succeed quickly because our position in that case will be painful’’ (Hoffmann, 2002). With a strong focus on hydrogen today, one has to wonder if energy security for the developed world will spell insecurity for the OPEC nations. Why just the OPEC nations? Simply, the developed world has focused on exploiting the oil produced by the non-OPEC nations first. Consequently, the non-OPEC oil will dry up first, possibly as early as 2015, as noted earlier. Since the hydrogen economy likely will not take hold th...
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