Werewolf wrote:Solution is easy, send blackops into Saudi Arabia and exterminate a few of the heads which a brown from the USofA hole and see if they still want to remain production high, if they want war they can have it.
Absolutely no need. Obummer and his sheik butt monkeys are full of gas.
OPEC has no spare capacity. The EIA and IEA insist that Saudi Arabia has 2 million barrels per day of spare capacity
but nobody has seen any evidence of this unicorn. It is also quite funny how the spare capacity never changes with time.
I was seeing the same number bandied about over 10 years ago. It is BS. Saudi Arabia is a dead man walking in terms
of oil production. It's crown jewel, which accounts for half its production, Ghawar is going to collapse in the near future.
The collapse of Ghawar will be similar to the collapse of the Yibal in Oman. It is all about the physics. Water is pumped
into these reservoirs to maintain the pressure. As long as water is less than 45% of the total oil + water volume you get
oil to flow through the rock matrix. The fluid in the reservoir is an inverse emulsion where water forms droplets suspended
in oil and the oil has continuity. As soon as the water approaches 50% there is a catastrophic transition (phase change) to
a standard emulsion where you have oil droplets suspended in water. The problem is that in this regime there is no oil
flow any more. The water flows through the rock matrix to the well head but the oil droplets are trapped thanks to the
huge difference in viscosity. In the final analysis over 50% of the oil in any of these Saudi reservoirs can never be extracted.
Ghawar has been exploited since 1951. It is 63 years old and cannot be made to last another 60. There is a book by
Matthew Simmons called Twilight in the Desert that gives good evidence that this field will collapse in the short term.
The source of the increase in global oil production in the last few years has been the USA. OPEC is stalled and non-OPEC
minus the USA is declining. The surge in US production is due to high oil prices and the development of expensive plays
such as the Bakken and Eagle Ford. These deposits have been known about for decades but were not exploited because
So if Obummer wants to destroy Russia by keeping the oil price low, he will succeed in shutting off the only excess production
on the planet. In other words, he will cause the oil price to jump and jump by a lot in the coming year. Perhaps the USA
can print up some of its precious fiat (the one many Russians are dying to get thanks to their "wooden" ruble) and just
subsidize the oil producers to keep the house of cards from falling. Then Russia must take emergency measures to secure