Who controls the world's oil?

[Bangkoktraveler]

Arab News

May 16, 2008

 

Not long ago the price of oil was about a quarter of what it is today. But soon after the invasions of Afghanistan and Iraq the price of oil began to escalate in tandem with the turbulence in the Middle East.

 

The war also contributes to the escalation of fuel cost in indirect ways; for example, by plunging the US ever deeper into debt and depreciating the dollar. As oil is priced largely in US dollars, oil prices generally creep up as the dollar loses value.

 

And the markets got further edgy when reports of tight global supplies of distillate fuels such as diesel came in after a snag at the Grangemouth refiner in Scotland. European middle distillate stocks fell sharply in April, down 1.4 percent from March and 7.2 percent lower than a year ago, data from industry monitors Euroilstock showed.

 

Bush also seems to be resisting the US Senate move to suspend deliveries to the US Strategic Petroleum Reserve until crude prices fall below $75 a barrel. The move with bipartisan support wanted the Bush administration to temporarily halt the shipment of about 70,000 barrels of oil a day to the Strategic Petroleum Reserve.

 

And indeed one cannot forget the role of speculation here. F. William Engdahl strongly says in a recent write up that the oil markets are controlled by an elaborate financial market system as well as by the four major Anglo-American oil companies. As much as 60 percent of todayâ??s crude oil price is pure speculation driven by large trader banks and hedge funds.

 

It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price.

 

Letâ??s be realistic Mr. Bush!

 

We are living in an era where any thing bullish could push prices up and you have more of a power to control those extraneous factors than indeed the Saudis. Before starting talks in Riyadh and before making political rhetoric, Sir, you need to go over the facts, closely and coolly and it would be very clear, who really controls the markets. Short & Simple: Itâ??s not Saudis, or for that matter the OPEC. Welcome to Riyadh, Sir.

 

Link

[cavanami]

I've just finished reading a (non-fiction) book, "Confessions of an Economic Hit Man"...excellent read that fills in the gaps for shit like this!

This book and several others that I have recently read really paint the entire Bush family as a very evil family!!!

[Faustian]

Indeed, but it isn't anything to do with them, it's the leftists. RY said it is so, therefore it 'must' be correct.

 

I'd say this is an unreliable source for an 'opinion' piece...the Arabs are making a killing right now, but equally blame can not be apportioned their way completely. Who to believe? Neither Bush or the Arabs I'd suggest.

[Old Hippie]

Ok, but until we in the USA/World have a better energy policy, and use none petroleum based fuels (Nuclear) we will continue to be at the mercy of these pricks. Certain countries are on board with this, which will leave the U.S. further behind if we don't start now.

[Bangkoktraveler]

Ask yourself, the Oil Companies say they can not afford to open new oil fields because it cause to much. But oil companies are making record profits.

 

If the USA produces 5,102,000 barrels/day of oil

and imports 10,118,000 barrels/day of oil

in which 5,517,000 barrels/day of oil come from OPEC nations,

then why does the USA pay OPEC prices for non-OPEC oil and foreign oil?

 

Something else I find disturbing is the ranking of oil producing countries:

1. Saudia Arabia produces 10.665 million barrels of oil per day

2. Russia produces 9.677 million barrels of oil per day

3. USA produces 8.330 million barrels of oil per day

 

7. Canada produces 3.288 million barrels of oil per day

 

15. Iraq produces 2.008 million barrels of oil per day

 

Why do the politicians seem to indicate the USA is not an oil producing nation and that we are dependent on other nations for oil?

 

My source for the above data is found HERE.

 

 

 

[Flashermac]

If the price goes much higher, maybe it's time to start working with oil shale?

 

 

[Bangkoktraveler]

Something of interest I found:

 

[color:red]"About Half of U.S. Oil Imports Come from the Western Hemisphere"

 

Some may be surprised to learn that almost 50% of U.S. crude oil and petroleum products imports came from the Western Hemisphere (North, South, and Central America and the Caribbean including U.S. territories) during 2006. We imported only 16% of our crude oil and petroleum products from the Persian Gulf countries of Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia, and United Arab Emirates. During 2006, our five biggest suppliers of crude oil and petroleum products were:

 

Canada (17.2%)

Mexico (12.4%)

Saudi Arabia (10.7%)

Venezuela (10.4%)

Nigeria (8.1%)

It is usually impossible to tell whether the petroleum products you use came from domestic or imported sources of oil once they are refined.

 

Link

 

 

[Old Hippie]

Here is a sort of fact, maybe little known. Years back, the price of oil went "too high" and American companies started looking for cheaper alternatives/sources. The result was the price fell sharply, making it "non cost effective to pursue" these other options. My guess is, if we did that again, the price would again fall. However, this time we should keep going and thus reduce the need for the Mid east oil...let them choke on it.

[Bangkoktraveler]

Gas over $4.00 a gallon and creeping toward $5.00.

[Flashermac]

Most Bangkok taxis - and a lot of private cars - have switched from petol to gas. Why not the US?