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To: Brumar89 who wrote (69527)4/13/2016 6:32:27 PM
From: Brumar89  Respond to of 86355
 
Saudi Arabia is on a drilling binge—and looks likely to again dominate global oil

Across the globe— in the US, Europe and China—oil companies big and small are scrambling to stay afloat, cutting expenses to the bone, and shelving flesh-and-muscle projects worth a collective millions of barrels a day in the future market. The likely repercussions include lower-than-expected profit in coming years, a crude oil shortage, and stunted global GDP growth.

But into the breach has marched Saudi Arabia, the world’s go-to swing producer since the 1970s. While ExxonMobil, Chevron, Shell, and BP are slashing investment by tens of billions of dollars, Saudi Aramco’s is soaring: As of March, the number of rigs drilling for oil in the kingdom had tripled to 69, from 23 in January 2011.

Many leading analysts continue to argue that the Organization of the Petroleum Exporting Countries (OPEC), including Saudi Arabia, has lost its punch, and no longer heavily influences the oil markets. Yet oil prices are trading at a five-month high ahead of an April 17 meeting in Doha involving Russia and some members of OPEC. They are up again this morning in European trading, to $43.37 a barrel.

This run-up hinges on confidence that the petro-states will figure out a formula to more or less freeze global production, begin to stem the oil glut, and push prices back up. In other words, the oil traders bidding up prices believe that OPEC can grow back its teeth.But petro-states are unlikely to corral the oil surplus, because one of the group’s most important members—Iran—will reject the production freeze. Having just escaped Western sanctions, Iran is insisting on adding hundreds of thousands of barrels to its exports in order to make up for lost profits during the three-year sanctions period. It won’t surrender this position.

But the Saudis are reasserting themselves
Still, there is something to the market’s confidence. The Saudi drilling binge reflects its determination to maintain market share, and thus local and geopolitical influence, once the dust settles and prices are at a materially higher band than the current doldrums.

Neil Beveridge, an analyst with Sanford Bernstein, says that since the 1990s, the Saudis have on average held 12% to 13% of the global oil market (see chart below). Right now, this means producing more than 10 million barrels of oil a day, with about 2.5 million barrels a day of production capacity kept idle for use if they choose to try to balance the market.

(Sanford Bernstein)By 2020, Beveridge reckons that global oil demand will have risen to 100 million barrels a day, up from the current 93 million. If the current proportions hold, by that time the Saudis will have to produce 12 to 13 million barrels a day. If you tack on the usual 2 million barrels a day of spare capacity, it looks like the goal for total Saudi production capacity is 15 million barrels a day.

“I think that is what is really happening here,” Beveridge told Quartz. “I don’t think this is to grow share but to defend it and meet a market where demand is growing fairly strongly.”

This view is a bit of an outlier. Jamie Webster, an oil analyst in Washington, DC, argues that the Saudis have had no specific plan, other than reacting to events as they happen. In terms of Saudi drilling, this is to maintain current production, not to increase capacity, he told Quartz.

What the consensus seems to miss, but Bernstein’s Beveridge captures, is how wrapped up the Saudis are in holding onto their stature as oil’s senior statesman. A new Saudi generation is moving into power, but that remains a deeply held self-image. And its influence is based on how much oil the country drills and exports.

http://qz.com/659024/saudi-arabia-is-on-a-drilling-binge-and-looks-likely-to-again-dominate-global-oil/



To: Brumar89 who wrote (69527)4/14/2016 7:29:14 AM
From: Brumar89  Read Replies (1) | Respond to of 86355
 
James Hansen admits earth was once warmer, seas higher than today:

Are You New To the Global Warming Debate? James Hansen Admits a Couple of Things about Global Temperatures and Sea Levels You Should Know
Bob Tisdale / 21 hours ago April 13, 2016

Guest Post by Bob Tisdale

Yale University’s Katherine Bagley interviewed James Hansen, former director of NASA’s Goddard Institute for Space Studies, in the post For James Hansen, the Science Demands Activism on Climate at YaleEnvironment360. That interview was replayed in the article Climate scientist James Hansen ‘I don’t think I’m an alarmist’ at The Guardian.

[ He's been arrested for protesting "coal trains of death" so yeah, he's an alarmist, a real sky is falling Chicken Little alarmist. ]

In that interview, Hansen admitted a couple of basic things that many people do not realize. So if you’re new to discussions of global warming and rising sea levels read on.

First, global surface temperatures were warmer during the last interglacial than they are today. An interglacial is a period between ice ages. That will be news to many readers.

How then, many will wonder, do we know for sure that the recent warming was caused by manmade greenhouse gases since we’re still within the realm of natural variability?

Of course the answer is: Climate models tell us so, even though those climate models are not simulating Earth’s climate as it existed in the past, as it exists now, and as it might exist in the future…climate models do not simulate naturally occurring ocean-atmosphere processes that can cause global warming.

Hansen’s second admission was sea levels were 6 to 9 meters (20 to 30 feet) higher during the last interglacial than they are today. Here’s an illustration from my ebook On Global Warming and the Illusion of Control – Part 1 (700+ page, 25MB .pdf).



But what Hansen failed to say is that paleoclimatological studies have indicated that it took a number of millennia for sea levels to rise those 6 to 9 meters when temperatures were warmer than today. See:

The corresponding portion of the Hansen interview (my boldface and brackets):

James Hansen: We know from the earth’s history that 2 degrees would eventually lead to sea level rise of several meters. The last inner glacial [sic] period, [that should read interglacial period] 120,000 years ago, that’s the last time it was warmer than today, sea level was 6 to 9 meters higher — that would mean loss of almost all coastal cities. It’s unthinkable that we walk into such a situation with our eyes open, and yet, the science is very well understood.

There’s no argument about the fact that we will lose the coastal areas, now occupied by most of the large cities of the world. It’s only a question of how soon. That message, I don’t think, has been clearly brought to the policymakers and the public…

If I was new to the discussions of global warming and sea level rise, that would be as far as I would have needed to read the interview. He would have turned me into a skeptic right there.

But contrary to his claims about alarmism, Hansen then goes on to play alarmist and discuss how his recent modeling efforts and resulting paper indicate that the rise maybe-sorta-could occur abruptly.

… More than 190 nations agreed [at the Paris climate conference last December] that we should avoid dangerous human-made climate change. That loss of coastal cities would be a dangerous outcome. It’s hard to imagine that the world will be governable if this happened relatively rapidly. What we conclude is that the timescale for ice-sheet disintegration is probably a lot shorter than has been assumed in the intergovernmental discussions.

Of course, even proponents of the hypothesis of human-induced global warming found the recent Hansen et al. (2016) study ( Ice melt, sea level rise and superstorms: evidence from paleoclimate data, climate modeling, and modern observations that 2 °C global warming could be dangerous) to be nonsense. Even the title of the paper includes the oft-used weasel words “could be”. See the following posts at WattsUpWithThat:

CLOSING

Two quotes from my ebook On Global Warming and the Illusion of Control – Part 1.

From the Closing to Chapter 1.16 – Sea Levels Are Rising:

This chapter opened: For many people, especially for persons living near the coasts, sea level is the critical metric associated with global warming and climate change.

Sea levels have risen since the peak of the last ice age, and, if history repeats itself, they will continue to rise to the heights achieved during the last interglacial: 5 to 10 meters (16 to 32 feet) higher.

But as discussed in this chapter, there are a multitude of factors that can contribute to the rise, or fall, in local sea level. Rising sea levels are, therefore, a local concern, as are steps to combat it, as I’ve noted numerous times in this chapter. Many countries and communities are already implementing measures to reduce the impacts of rising sea levels—employing methods designed specifically for their location.

Assuming that man-made greenhouse gases have contributed to the rate at which global sea levels are rising, curtailing man-made greenhouse gas emissions would only slow the rate, not stop it. Then again, The Houston & Dean (2010) Sea-Level Acceleration Based on U.S. Tide Gauges and Extensions of Previous Global-Gauge Analyses found that the rise in sea levels had not accelerated with global warming.

And from the Introduction, I began the discussion under the heading of SEA LEVELS, ON THE OTHER HAND, PRESENT AN ENTIRELY DIFFERENT PROBLEM:

Again, even if we could turn back CO2 levels to preindustrial values, sea levels would continue to rise. Sea levels have been rising since the end of the last ice age, and they will continue to do so until Earth cools once again and we head toward another ice age. That is, the only way to stop sea levels from rising is to start accumulating water on land in the form of ice.

Further, the rate at which global sea levels might possibly change in the future, in response to the hypothetical effects of man-made greenhouse gases, is still the subject of wide ranges of uncertainty and open debate…and the subject of even more alarmism from activists and the media, if that’s possible.

And I closed the discussion under that heading with:

The ridiculous suggestions by politicians and alarmists that we can control rising sea levels by reducing greenhouse gas emissions is one of the primary reasons for the title of this book: On Global Warming and the Illusion of Control.
https://wattsupwiththat.com/2016/04/13/are-you-new-to-the-global-warming-debate-james-hansen-admits-a-couple-of-things-about-global-temperatures-and-sea-levels-you-should-know/