Go Back   This Blue Marble, a Global Current Events Discussion Forum > Main Floor > Economy

Economy Economy discussion forum. Discuss the politics and effects of the general economy and global economic collapse here. Please keep all politics out of the Finance and Investment subforum.

Reply
 
Thread Tools Search this Thread Display Modes
Old 11-30-2016, 01:43 PM   #1
A.T. Hagan
Your "Crazy Town" reporter
 
A.T. Hagan's Avatar
 
Join Date: Aug 2008
Location: North/Central Florida
Posts: 12,165
Thanks: 2,472
Thanked 6,215 Times in 2,710 Posts
Default OPEC Agrees To First Cut In Oil Production Since 2008

http://www.npr.org/sections/thetwo-w...ion-since-2008


OPEC Secretary General Nigerian Mohammed Barkindo (R), the
Chairman of the OPEC Board of Governors Algerian Mohamed Hamel
(L) and the President of the Organization of Petroleum Exporting
Countries (OPEC) Mohammed bin Saleh al-Sada (C) attend a
meeting of the Organization of the Petroleum Exporting Countries,
OPEC, at the OPEC headquarters in Vienna, Austria on November 30,
2016.
Herbert Neubauer/AFP/Getty Images


Quote:
For the first time in eight years, the Organization of Petroleum Exporting Countries has agreed to cut oil output, ratcheting down production by 1.2 million barrels per day in hopes of stabilizing the global oil market. News of the deal sent oil futures higher Wednesday morning.

With the cut, OPEC's production will drop to 32.5 million barrels a day, effective on Jan. 1, 2017.

"The agreement is contingent on key non-OPEC countries agreeing to also cut oil production by 600,000 barrels a day," NPR's Jeff Brady reports. Russia agreed to absorb half of that cut, dropping production by 300,000 barrels.

The OPEC reduction is equal to roughly 1 percent of current production worldwide.
The rest at NPR.
__________________
Chance favors the prepared mind.
A.T. Hagan is offline   Reply With Quote
Old 11-30-2016, 01:51 PM   #2
Sysiphus
Senior Level 6
 
Sysiphus's Avatar
 
Join Date: Aug 2008
Location: Seattle
Posts: 8,309
Thanks: 597
Thanked 1,616 Times in 948 Posts
It will just be a matter of time before someone cheats. They always do. Prisoner's Dilemma and all that.
__________________
Quis custodiet ipsos custodes?
Sysiphus is offline   Reply With Quote
Old 11-30-2016, 01:52 PM   #3
A.T. Hagan
Your "Crazy Town" reporter
 
A.T. Hagan's Avatar
 
Join Date: Aug 2008
Location: North/Central Florida
Posts: 12,165
Thanks: 2,472
Thanked 6,215 Times in 2,710 Posts
Seems to be largely dependent on getting the non-OPEC producers to cut their production as well.

We'll see.
__________________
Chance favors the prepared mind.
A.T. Hagan is offline   Reply With Quote
Old 11-30-2016, 02:54 PM   #4
erudne
Member Level 1
 
Join Date: Oct 2016
Posts: 112
Thanks: 28
Thanked 35 Times in 14 Posts
With Texas discovery of a YUUGE oil field this OPEC will soon be but a memory
erudne is offline   Reply With Quote
Old 11-30-2016, 02:59 PM   #5
Sysiphus
Senior Level 6
 
Sysiphus's Avatar
 
Join Date: Aug 2008
Location: Seattle
Posts: 8,309
Thanks: 597
Thanked 1,616 Times in 948 Posts
Quote:
Originally Posted by erudne View Post
With Texas discovery of a YUUGE oil field this OPEC will soon be but a memory
It's not YUUGE. At 3 billion bbls, it's only enough for 30 days' of global demand, and about 120 days of US demand. The discoveries keep getting smaller and smaller. It's like adding 1, 1/2, 1/4, etc. You never make it to 2. That is what is happening. We are in peak oil but no one will acknowledge it anymore and they just throw open the taps. This cartel "agreement" will not work - someone will cheat plus the non-OPEC members will just dump more on the market if the price goes up.

Or were you being facetious?
__________________
Quis custodiet ipsos custodes?
Sysiphus is offline   Reply With Quote
Old 11-30-2016, 04:45 PM   #6
Dietrich
Niche player
 
Dietrich's Avatar
 
Join Date: Jun 2011
Posts: 2,047
Thanks: 347
Thanked 740 Times in 418 Posts
The discovery in Texas was not an oil field. It is a shale formation. It has to be processed into oil, at a currently unknown price.
Dietrich is offline   Reply With Quote
Old 11-30-2016, 06:00 PM   #7
Sonny
Star Witness
 
Sonny's Avatar
 
Join Date: Aug 2008
Location: the safe house
Posts: 5,652
Blog Entries: 1
Thanks: 1,710
Thanked 694 Times in 460 Posts
Quote:
Originally Posted by Dietrich View Post
The discovery in Texas was not an oil field. It is a shale formation. It has to be processed into oil, at a currently unknown price.
Nope, I googled "shale oil vs oil shale" , try it. The Wolfcamp shale oil that's in the Permian basin is classified as a light sweet crude..
Whereas Oil shale is a shale that contains kerogen.

Half of the total increase in number of US drilling rigs, (rig count), since july's low have been in the Permian basin. Might be because it is profitable to do so?

Last edited by Sonny; 11-30-2016 at 06:09 PM.
Sonny is offline   Reply With Quote
Reply

Tags
2008, agrees, cut, oil, opec, production

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT -4. The time now is 04:02 PM.


Powered by vBulletin®
Copyright © Jelsoft Enterprises Ltd.