Saudis set to boost oil production capacity
posted at 2:16 pm on January 17, 2007 by Allahpundit
Enjoy it; it’s the only good thing that has come or will come from Iran building nukes, explanding its influence, and generally scaring the shinola out of Sunnis. On the great Wahhabist roulette wheel o’ arch-enemies, their number’s suddenly come up — much to the relief of American motorists.
Someday that mullah mushroom cloud’s going to spout over Manhattan, but I promise you this, my friends: by the time it does, gas will be at 35 cents a gallon.
Crude oil fell to a 19-month low as Saudi Arabia, OPEC’s biggest producer, said it will increase production capacity.
Saudi Arabia has 3 million daily barrels of spare capacity and will push ahead with projects to expand output, Oil Minister Ali al-Naimi said today. Prices plunged yesterday after al-Naimi said he saw no need for an emergency OPEC meeting to consider further cuts in output. Prices have plunged 17 percent this year on speculation OPEC members won’t comply with production cuts…
“The Saudis probably want lower prices for a combination of reasons,” said Nauman Barakat, senior vice president of global energy futures at Macquarie Futures USA Inc. in New York. “This could benefit them both politically and economically. This may be a signal for Iran to stop meddling in Iraq and at the same time stanch the move to alternative fuels such as ethanol.”
The head of the Shiite SCIRI party in Iraq warned the U.S. today to lay off Iranians operating inside the country. Make that 30 cents a gallon.









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I just hope whatever the reason that we keep on moving to find a new energy source. Or drill Alaska a little more.
bloggless on January 17, 2007 at 2:27 PM
This administration’s energy policy, or lack thereof, baffles me. We should be pursuing alternative energy sources and conservation as intensely as we pursued the Manhatten Project.
RedWinged Blackbird on January 17, 2007 at 2:37 PM
Massive nuclear electrification project combined with spent fuel recycling rather than burial. Result is that waste is reduced by 90% and what waste is produced decays to safe levels in 300 years rather than tens of thousands of years.
See Scientific American, December 2005 for more details.
It works, we know it works, we were doing it. Clinton/Gore killed the project.
crosspatch on January 17, 2007 at 2:38 PM
About time. Saudi Arabia owes the United States a debt that they can NEVER repay. This is a good start, though.
hillbillyjim on January 17, 2007 at 2:51 PM
Didn’t the Members Only midget just meet with Speedy Chavez to discuss the need for reduced production? Oh, how I love it!
SailorDave on January 17, 2007 at 2:53 PM
Just more fallout from Bush’s “blood for oil” war…
RightWinged on January 17, 2007 at 2:54 PM
That article is:
“Smarter Use of Nuclear Waste; December 2005; Scientific American Magazine; by William H. Hannum, Gerald E. Marsh and George S. Stanford; 8 Page(s)”
And is available from Scientific American Digital in PDF for under $8 or your local library might have a copy.
crosspatch on January 17, 2007 at 2:54 PM
The Dems get a reprieve from the political consequences of their failed environmental ignorance… er, I mean policies!! Yeeaaa! Now they can go ahead with keeping this country dependant upon every foreign Dick and Harry… er, I mean every Allah and Gomez.
Griz on January 17, 2007 at 2:58 PM
Good one, Griz.
We’ve gotta develop other sources and we’ve gotta kick the habit eventually.
Still, great news.
hillbillyjim on January 17, 2007 at 3:00 PM
I guess that means gas guzzling SUV sales will go through the roof and progress on alternative fuels will lose their importance.
darwin on January 17, 2007 at 3:04 PM
I don’t mean to be contentious, Darwin, but I doubt anyone who has to work for a living will forget $3.00 plus a gallon.
I know I won’t.
hillbillyjim on January 17, 2007 at 3:07 PM
Gore and his ilk are only using their “energy policy” trip to try and destroy the economy, like crosspatch said, we have the technology, but they do not want it.
Neither do they allow windmills or off-shore drilling sites to ruin THEIR view.
You think they really give a rat’s ass about the caribou in Alaska?
Nope, it is just another Commie Ploy to try and bring our way of life to it’s knees.
bbz123 on January 17, 2007 at 3:10 PM
Now that’s a little far-fetched, don’t you think?
Who is they?
I’m no Algore (sic) fan, but that’s a little bit out there.
hillbillyjim on January 17, 2007 at 3:17 PM
How can THEY stop a technology if it is profitable? THEY can and did stop drilling in ANWR, but this other?
hillbillyjim on January 17, 2007 at 3:19 PM
The only solution, the only way to win:
http://www.shiningcitywarrior.blogspot.com/
JustTruth101 on January 17, 2007 at 3:25 PM
That’s it darwin, always look for the dark lining to the silver cloud.
dalewalt on January 17, 2007 at 3:26 PM
Of course by the time we get 30 cents a gallon gas, we’ll all be driving $2.80 a liter hydrogen cars.
Iblis on January 17, 2007 at 3:26 PM
To borrow a phrase:
BOO FREAKIN’ HOO!!!
hillbillyjim on January 17, 2007 at 3:32 PM
“That’s it darwin, always look for the dark lining to the silver cloud.”
Just being realistic. Smaller vehicles are more popular during periods of high gas prices. The opposite is true also … larger vehicles become popular when prices are low. I say we drill our own oil and use it while we perfect alternative energy.
darwin on January 17, 2007 at 3:40 PM
You see–it’s all part of the Dem’s first 100 hours crap. As soon as they took control, gas prices decrease, extinct species suddenly spring back to life, Jimmy Hoffa is found and the stuff floating around my toilet bowl suddenly smells like a field of lavender! Those magic Dems, gotta love ‘em!
robblefarian on January 17, 2007 at 3:40 PM
Our own oil is for use when we go to war for oil in the ME.
I still have hope that a showdown with Iran is in the cards. It’ll be ugly politically and economically, but I think it’s going to need to get done.
Kai on January 17, 2007 at 3:45 PM
We forgot the ’78 Arab Oil Embargo didn’t we.
Catseye on January 17, 2007 at 3:45 PM
Excuse me, that should have been ’73 Arab Oil Embargo I believe…See what I mean, I can’t even remember when it was.
Catseye on January 17, 2007 at 3:48 PM
In a word: NO.
Maybe you did, but I will never. Any thinking person will factor OPEC and their shanannigans into any equation involving the Middle East.
hillbillyjim on January 17, 2007 at 3:52 PM
Long lines, odd and even rationing….Never ever forget.
hillbillyjim on January 17, 2007 at 3:53 PM
Some of the youngsters here will probably pass gas (methane) when they learn of the energy crisis that was our reality in that decade.
hillbillyjim on January 17, 2007 at 3:55 PM
crosspatch on January 17, 2007 at 4:03 PM
I was still a few years shy of driving (well, legally anyway :-), but I still remember the long lines; the rationing, only allowing to buy 5 dollars of gas at a time. Hopefully I’ll never have to go through that myself.
dalewalt on January 17, 2007 at 4:04 PM
If the Saudi’s keep this up, the mullah mushroom cloud will spout over Riyadh instead.
Rick on January 17, 2007 at 4:05 PM
But we as a country did. It was the late 70′s and early ’80 where we started looking at more economical cars. That’s how Mazda made it here. There was a waiting list for the 626 and you didn’t even have a choice of colors, sort of like the Prius is doing now. But up until the last couple of years, what happened to us? SUVs took over. Half the people I see on the road are driving V8s with only the driver in the vehicle. Up until the last year or so, when was the last time you saw a car commercial advertising the gas milage? And the big 3 keep spitting out the big ones. What’s one of the latest…the Nitro? Gets 17/21 mpg. Ford Edge? Gets mid 20s with a V6. Ford Fusion-23/31.
I mean Ford had a Tempo out in the mid-80 with a Mitsubishi diesel and 5 speed that got 60 mpg on the highway. What happened if the consumer didn’t forget once the Sauds started throwing cheap oil at us again? In my opinion, they’re doing the same now.
Catseye on January 17, 2007 at 4:07 PM
Here is the link to the Iranian rationing story.
Also, in the past couple of weeks, a cold snap in Iran caused the Iranians to stop gas imports to Turkey to satisfy domestic demand.
crosspatch on January 17, 2007 at 4:16 PM
Oops, ment exports to Turkey. Basically, Iran shut down the pipeline until the weather got better. So Iran’s production really isn’t much above potential domestic demand.
crosspatch on January 17, 2007 at 4:17 PM
Catseye, you are correct. I have never felt the need to justify my manhood by the size of my ride, so I have never fallen for Detroit’s piss-poor offerings.
Also note, I bought a new vehicle ONCE. I will never give money away like that again. Better to let someone else get soaked driving it off of the lot.
hillbillyjim on January 17, 2007 at 4:31 PM
Richard, I enjoyed having you here for a visit. I think the world of you and don’t you forget it. Be sure to program number in your phone just in case someday needed.
hillbillyjim on January 17, 2007 at 4:40 PM
Yadda yadda yadda….
hillbillyjim on January 17, 2007 at 4:40 PM
I’m waiting to buy another new car. In 2009 Germany is supposed to be putting out a mid-engine diesel 2+2 seater that getts 155 mpg and selling it for around $13k. Until then, I’ll just drive my little 30+ mpg 4 cylinder. Gotta go. Nice talking.
Catseye on January 17, 2007 at 4:41 PM
Sorry, folks, trying to get step-child to accept he’s part of the gang.
hillbillyjim on January 17, 2007 at 4:42 PM
Catseye, you made some valid points. Nice to see some sanity these days. Don’t buy brand new. Put one buyer between you and their money-sucking machine and you will be glad you did.
hillbillyjim on January 17, 2007 at 4:45 PM
Everyone else, sorry. Just trying to patch some damage that a complete dumbasp did a long time ago. Thank you for your patience.
hillbillyjim on January 17, 2007 at 5:08 PM
All you alternative energy kids need to learn some thermodynamics. The reason they’re “alternative” is because they are horribly expensive and inefficient and face monstrous scale problems.
Wind is too variable to work for grid provision (it can work for charging batteries, which results in serious storage inefficiencies, and is thus only useful for very remote installations), is a horrible eyesore, and has problematic land use requirements. Solar eats up simply massive quantities of land and the best sites are unbelievably restricted “environmentally sensitive” land that the tree huggers will fight to the death to protect (it’s nothing but sand and scrub, but its “rare” sand and scrub…). Hydrogen isn’t a fuel, it’s a storage mechanism that doesn’t transport well (liquid H doesn’t play well with metals and is hell on pipelines) and requires massive safety investments. Nuclear is great, but is the Devil incarnate according to the greenies.
All in all they’re not environmentalists, they’re watermelons pursuing communism and the destruction of the West by other means. If you are concerned about geopolitical security, exempt oil production from all regulations, taxes, and lawuits, and smite states like California that try to discourage oil production. The Left, as always, are committing treasonous acts by preventing oil production on US soil.
libertarianuberalles on January 17, 2007 at 6:08 PM
‘Quick sell it all and lets get out of here before the they get here. It an Iranian invation sale!’
- The Cat
MirCat on January 17, 2007 at 7:15 PM
Let me preface this by stating that I live in a solar heated home. That I planted 5500 trees on my property (7 acres), that I preheat my hot water using the sun, and that I have 3 high-mileage 4 cylinder cars for transportation. And that those trees I planted are being used for my own personal lifetime supply of firewood (and then some), a truly renewable resource, as they are now self-propagating.
I live a “renewable” energy lifestyle, in other words. In fact, I get 55 percent of my space heating from solar. If I had the house designed and built today (instead of the late 1970′s — remember the solar energy tax credit?), I’d get 80 to 85%.
Having said that. And also being able to claim that I am more than 5 millennium beyond most of you in “Earth Day” tree planting celebrations, let me pour some cold water on the “oil” and “alternate energy” issues that some of you have brought up.
No matter what the environmentalists say, the WORLD is an oil economy and will remain so for the next 200 years, at least. America has a 300 year supply of COAL, for goodness sake. And you can get refinable oil from coal if necessary.
The USA has enough oil on the continent and off-shore to supply us for decades. All that is needed is the political will to go get it. The liberals do not want that.
Their environmentalist allies don’t want that, either.
The hard-core among the environmentalists view humanity as a “virus” and a scourge on Mother Gaea. Even the late, beloved, Jacques Cousteau advocated mass murder as an “environmentally sound” way of managing the population of the planet. The cadre of the Sierra Club, National Wildlife Federation, etc., including their allies PETA, wants a universal lifestyle on par with that of the mid 19th Century. That includes medical science, BTW.
Don’t let their propaganda fool you. Environmentalism is about power. If you can tell people how to live their lives, and force them to do it, you have achieved the ultimate power.
I recommend that you all do some research about the “Wildlands Project” (a US environmentalist response to the 1992 UN Biodiversity Treaty) that intends to turn 48% of the lower 48 United States into wilderness so that the fox and wolves and antelope can “run free” — without people, houses, or even roads. The founder of Wildlands was Earth First! eco-terrorist Dave Foreman and the goal is the eventual forced resettlement of millions of people to reclaim half of the country for Bambi and his friends.
While the liberals simply want to use energy (costs and availability — read that as “rationing”) as a way to control the people.
In other words, all the nonsense from the Democrats about ANWR, oil, fleet milage reductions, “alternate energy sources,” etc., is garbage.
I have nothing against hydrogen cars (which President Bush advocating development of), electrical driven cars, hybrids, or whatever. Their success or failure in the market place will rest solely on their economics, and not their politics.
The existing world-wide oil economy gets in the way of both liberal’s (i.e., Democrats) and environmentalist’s political goals. Hence the political opposition to drilling in ANWR. Regardless of what they say in public, the left (i.e., the Democrats) and the eco-wacks approve of the economic disruption caused by $3.00/gal gasoline), and new off shore drilling — which the Democrats will attempt to REVERSE in the 110th Congress, BTW.
Do not be fooled about claims that the world’s oil is running out. It won’t happen in your lifetime, nor that of your great-grandchildren, either. Don’t be fooled by bogus “pollution” and “greenhouse gas” arguments against petroleum-based energy, because great strides have already been made in cleaning exhausts and there will be more to come.
And don’t fall for the nuclear energy critics line either. Nuclear generated electricity is pollution free and fuel recycling prevents the current ‘waste’ issues. We ought to bbuild many modern, safe, nuclear energy generating stations.
The high electrical energy cost and oil prices are artificial constructs, whose purpose has more to do with social control than economics, as I note. Under normal economic theory, despite high oil taxes charged by the state and federal governments, crude oil prices should be much lower than they are right now, as supply (in terms of provable reserves) are GOING UP, not down. Not only world wide, but in the USA (or those parts of the off shore that we can reach and control).
The Saudis are boosting production FOR THEIR POLITICAL reasons and for no other purpose. And that political reason may have everything to do with Iran’s potential dominance of the middle east.
OPEC was a scam in 1973-4 during the 1st “oil crisis” caused by Israel’s victory in the Yom Kippur war of ’73. It was a scam in 1979 when Iranian mullahs chopped supply to punish us for our support of the ousted Shah. And it remains a scam today.
I live the energy conservationist life because I choose to do so — because it makes sense to me. Yes, I believe in “alternate energy” sources as well as in the oil economy. And it is my choice as a free American to live any lifestyle I want.
But I also own an SUV *AND* a 4×4 pickup truck. Because having them makes it possible to plow my 1000 foot driveway in the winter, tow my general purpose trailer, and haul materials (including groceries and “stuff” back from Wal-Mart) and protect my family with surfooted 4 wheel drive and 4000 lbs of steel mass, and that suit MY lifestyle, too.
Al Gore would have a cow, but I don’t give a damn what that lying moron thinks, anyway.
Okay. I’m done. Thanks for reading.
georgej on January 18, 2007 at 4:26 AM
Good luck with that.
Privately funded ethanol plants are going up at a record rate in the mid west. In our area, each plant has the capability to use all corn grown within a 30 miles radius and each plant is spaced accordingly. I know of 4 plants going up within an hours drive from my home.
The plant closest to us will go into production at the end of February. It’s entire production for the next 18 months has already been pre sold.
The company that owns the local plant, also has an experimental plant in the early phases of construction. It’s sole purpose is to experiment with different types of energy production.
George, ya made me chuckle. Change general purpose trailer to livestock trailer and you have just described MY lifestyle.
People who scream about big bad SUV’s have a tendency to forget that this is a very large country with different types of weather, and different types of people who live VERY different lifestyles and require very different tools.
Tink on January 18, 2007 at 12:02 PM
Good comment.
Environmentalist is another way of saying Socialist.
Rick on January 18, 2007 at 12:39 PM