Yoshie, do you really believe  that SA can increase its capacity by
40%?  Where is it to come from?  If Simmonds and all the others I have
read including some former Saudi oil company engineers who are reporting
a water cut of Saudi production of 50-60% and rising and no new giant or
even significant fields in the offing, the 40% figure would appear to be
somewhat preposterous. It would appear, at least on the surface, to be a
case of 'whistling past the graveyard' (attempting to undermine Iran's
political resolve, perhaps?)

Paul P

Yoshie Furuhashi wrote:

On 1/30/07, paul phillips <[EMAIL PROTECTED]> wrote:
Expansion of spare production capacity takes time, so we are not
talking about short-term price fluctuations.  Saudi Oil Minister Ali
Al-Naimi says that Saudi Arabia plans on boosting output capacity 40%
by 2009.  I believe that it wants to do so for various reasons, not
only to counter Iran but also to take more power within the OPEC and
not to let Russia (which is not subject to the OPEC quota) become a
more powerful player in the hydrocarbon markets.
--
Yoshie
<http://montages.blogspot.com/>
<http://mrzine.org>
<http://monthlyreview.org/>




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