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Offline Autos_Editor

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OPEC overproducing oil, study says
« on: February 09, 2012, 11:02:31 pm »
Crude oil output from the Organization of the Petroleum Exporting Countries (OPEC) rose above its production ceiling in January, raising questions about how it will handle the excess volume, according to a new analysis by Platts.

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Offline Danno001

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Re: OPEC overproducing oil, study says
« Reply #1 on: February 10, 2012, 08:06:36 am »
And this is news? OPEC has continually exceeded "quotas" when the price has been high. It is called "supply and demand" economics. The extra production certainly has not been negative for prices. All those extra cars being put on the road in large markets such as India and China and increased industrial production world-wide are markets for the extra oil. Nevermind the increase in the popularity of cruises (floating hotels) and that 250,000 gallons of heavy diesel fuel used for each trip - but that's another topic (rant).
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Offline Snowman

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Re: OPEC overproducing oil, study says
« Reply #2 on: February 10, 2012, 08:53:40 am »
Why is Alberta having trouble selling its oil? why do they have to drop its price to keep it moving? The US is ramping up production as well with domestic supplies.....hmmmmm
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Offline Danno001

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Re: OPEC overproducing oil, study says
« Reply #3 on: February 10, 2012, 03:45:35 pm »
Quote from: Snowman on February 10, 2012, 08:53:40 am
Why is Alberta having trouble selling its oil? why do they have to drop its price to keep it moving? The US is ramping up production as well with domestic supplies.....hmmmmm

US will continue to import for the foreseeable future - at least 10 - 15 years and at least 50% of their needs. Alberta can't sell because of the inability to ship oil, therefore the need for the Keystone XL and Northern Gateway.
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Offline articsteve

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Re: OPEC overproducing oil, study says
« Reply #4 on: February 10, 2012, 03:51:56 pm »
Gas just went up from $1.16 to $1.24 yesterday.  I'm not feelling the over supply.
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Offline vdk

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Re: OPEC overproducing oil, study says
« Reply #5 on: February 10, 2012, 05:13:03 pm »


Demand and supply for oil are generally inelastic (not represented in this graph).
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Offline Danno001

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Re: OPEC overproducing oil, study says
« Reply #6 on: February 10, 2012, 09:36:58 pm »
Quote from: vdk on February 10, 2012, 05:13:03 pm


Demand and supply for oil are generally inelastic (not represented in this graph).

Over days and weeks inelastic, longer term such as multiple months and years, elastic.
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Offline mmret

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Re: OPEC overproducing oil, study says
« Reply #7 on: February 10, 2012, 09:40:22 pm »
Quote from: Snowman on February 10, 2012, 08:53:40 am
Why is Alberta having trouble selling its oil? why do they have to drop its price to keep it moving? The US is ramping up production as well with domestic supplies.....hmmmmm

The recent troubles I believe are due to a big refiner up here shutting in for maintenance (Syncrude is heavy, need new and relatively high dollar refineries to take the stuff) and some pipeline to the US getting clogged or something.

Good thing Harper is in China :)

I think the pipe to BC is just waiting for First Nations acquiescence. Then we are in business and no longer beholden to the US.
However I wonder if the Americans will retaliate somehow... They don't want the oil if I recall correctly, but they still wouldn't like us selling it to "certain other countries".
« Last Edit: February 10, 2012, 09:42:10 pm by mmret »
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Offline Danno001

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Re: OPEC overproducing oil, study says
« Reply #8 on: February 11, 2012, 01:11:40 pm »
Quote from: articsteve on February 10, 2012, 03:51:56 pm
Gas just went up from $1.16 to $1.24 yesterday.  I'm not feelling the over supply.

East Canada oil is supplied by "off shore" sources. The majors are reluctant to disclose the supply, but Middle East, and/or Venezuala are likely sources. Alberta to East supply is non-existant. Keystone XL project might even see Canada oil shipped through Houston and sent on to Irving NB refinery and Ultramar Quebec refinery. 
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