Seppo, during an up cycle, players like Norway are not nearly as important as the Middle East biggies. Besides Norway may not be in a position to boost that much anyway:
canoe.ca
They might as well get some freebie brownie points with OPEC. Too little, too late.
JQP has detected a change in the statements coming out of the big Middle Eastern producers. This may be the reason why:
washingtonpost.com
It should be obvious to all that a crippled Iraq makes it easy for OPEC to maintain discipline. In true Cole-esque fashion the US seems to be trying to push several levers to get the prices down. Maybe, just maybe, OPEC doesn't want those parts going to Iraq? Maybe they never did. Duuuuhhhhh! Unfortunately, it will be... too little, too late, anyway, and will probably serve to piss off and unify OPEC.
Iraqi fields must be in a shambles by now, and as a direct result of US policy. They simply cannot get their production back up to previous levels , even if they wanted to for a very long time. Actually, I don't think they want to. Saddam is laughing all the way to the bank. At these prices, Saddams smuggling ops should be paying handsom dividends, without appreciably adding to worldwide stocks. Higher oil prices are why Saddam went to war in the first place. Also read my post to PP on the Iraqi brain drain. Even if they get the parts there will be a shortage of skilled workers to use them.
canoe.ca
If the Iraqui fields continue to deteriorate at the rate they obviously are, what happens in Norway will be made mute. Too little, too late. Richardson is between a big fat rock and a very hard place. As oil goes to 33 we will hear more and more about the SPR as that is the only tool the US really has, after decades of a non-existant US Oil policy. Too little, too late. Pathetic, isn't it? |
