Gulf oil production poised to increase by 10 million barrels a day.
Dubai: A massive $300 billion investment in boosting oil production is underway which could see the Arabian Gulf deliver a staggering 10 million barrels of crude a day in added capacity by 2015 more than half from Saudi Arabia alone according to project research firm Proleads.
"Recent analysis of total global oil production and development projects indicate that world crude production capacity from all sources has the potential to rise from 87 million barrels per day to as much as 108 million by 2015," said Emil Rademeyer, director of Proleads.
"Our analysis shows that if all current projects across the region meet their projected targets in barrels of oil a day, it would mean that by 2015 the hydrocarbon rich countries of the Gulf Cooperation Council (GCC) will be supplying more than half that future added oil capacity," said Emil Rademeyer, director of Proleads.
This important Proleads analysis also reveals that within the GCC countries of Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and the UAE, approved upstream oil projects designed to either maintain or increase production capacity have soared in value from below $1.5 billion in 2006 to a 2008 peak of $30 billion.
Across the GCC, Proleads is also tracking a record of nearly 300 active upstream oil projects with a combined value of almost $300 billion.
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"PEAK" OIL? NOT IN THE MIDDLE EAST -- NOT WITH ABIOTIC OIL
This article is a powerful statement coming two days before OPEC is scheduled to meet.
Some, including perennial "cheerleader" T. Boone Pickens, have said OPEC will defend the $100 a barrel price with reduced production quotas.
By the way, who gets "hind tit" with reduced quotas?
And who will agree to reduced quotas if they see the Gulf Cooperation Council ramping up for an increase of 10 million barrels a day oil production?
Hmmm....
Who wants to get left behind?
Actually, this article suggests a completely different strategy. One of increased oil production, which will make more money by selling more product at less cost.
This strategy will cause growth in the world economy.
Time after time, industry after industry, reducing price and increasing unit sales makes more money in the long run than selling fewer units at higher price.
Also, oil producers have to have somewhere to invest their profits, so they need a healthy world economy, so their investments can, in turn, generate more profits.
Capitalism depends on recycling of profits in productive investments.
There is no question, high oil prices have stunted world economic growth, not just American economic growth.
It appears the Middle East oil producers, minus Iran, understand this economic lesson.
Not to mention they see other regions of the world -- Brazil and the strong potential of the United States ramping up oil production.
The world will benefit.
Would $300 billion be invested in oil production increases if the Middle East was on the verge of "Peak" oil?
Fat chance.
In turning to the physical capacity of the Middle East to increase oil production, it must be noted that up until recently investment was limited, yet oil continued to flow in a gradual increase.
Now, with the prospect of $300 billion in investment in oil exploration & production: Drilling new wells, using advanced technology, and employing new (Abiotic Principles?) strategies, production can be increased dramatically.
The Middle East because of its unique geology: A combination of subduction zone & horizontal shear geology due to the counter-clockwise movement of the Arabian plate into the Eurasian plate is the most productive oil region in the world.
Discussion of Abiotic Oil is not new for the Middle East: Reserves are reported to have increased without substantial new oil discoveries in the last decade and before that mainstream oil industry magazines published Abiotic oil articles that gave detailed scientific reasoning for Abiotic Oil in the Middle East: Offshore magazine: "Why Middle East may produce oil forever, April, 1995."
And by the same authors as the above linked article, Robert F. Mahfoud and James N. Beck of McNeese State University (US), Oil & Gas Journal, October 28, 1991. A paper that was linked in a previous comment, entitled, Inorganic Origin In Upper Mantle Seen Likely For Solid Hydrocabons In Syria Plateau Basalt.
Both Offshore and Oil & Gas Journal are "bibles" of the oil industry.
Both the scientific paper and the magazine article are rigorous examinations of oil bearing geology that make a persuasive case that solid hydrocarbons are Abiotic in the Syrian Plateau and that oil is Abiotic in the broader Middle East, respectively.
This writer strongly encourages readers to carefullyy examine the Syrian paper. The methodology and testing is the most rigorous imaginable. The discussion and conclusions are reasonable in light of the scientific evidence gathered.
And remember, this work is available on the Gas Resources website and is consistent with Stanley B. Keith's work previously linked.
"Peak" oil pushers, its time to cry in your beer and take another shot of whiskey.
"Peak" oil is dead.
Abiotic Oil is reality.
OPEC MEETING, September 9, 2008
"Countries, such as Iran and Lybia, will likely push for curbs in output due to the recent rapid decline in oil prices when the Organization of Petroleum Exporting Countries meets in Vienna. Last month, the cartel's members pumped about 30 million barrels a day. But oil prices remain high, so some experts predict OPEC will opt to hold output steady. Saudi Oil Minister Ali Naimi has talked about maintaining a floor of $80 a barrel, nearly 25% lower than current levels."
Source: various news outlets.
80 Dollars a barrel is right in line with the above posted article from Gulfnews.com, which suggests, not just Saudi Arabia, but also the other members of the Gulf Cooperation Council agree on a lower oil price strategy.
$80 a barrel on the world market still provides plenty of profit potential to spur added investment in oil production around the world.
Deepwater, ultra-deep, drilling is still profitable at the $80 level.
It's time to invest in oil production, not speculate on oil prices.
OIL FALLS ON COMMENTS FROM SAUDI OIL MINISTER
Brent oil in London dropped below $100 a barrel as a result of comments from the Saudi Oil minister indicating OPEC is unlikely to cut production as the OPEC's meeting in Vienna got underway.
Standing Corrected by the facts: OPEC decided to cut production 530,000 barrels a day.
"PEAK" OIL AND OPEC TURNING DOWN THE TAPS
So OPEC is turning down the taps reducing oil production over 500,000 barrels a day.
What is the significance of that decision?
Certainly, almost by definition, it proves "Peak" oil has failed to arrive, today, or the next.
Why?
Because what OPEC's decision says is that the price of oil would collaspe if they didn't turn down the taps.
The price of oil, recently, has been driven by "Peak" oil concerns.
That means even at maximum oil production demand is more than supply.
Well, that certainly isn't the case, is it?
The "well" is not going dry, rather, OPEC isn't "hauling" up as much oil.
That's called a political decision to reduce supply.
Actually, the fact that OPEC feels compelled to reduce supply should act to "squeeze" peak oil sentiment out of the market.
Because that acknowledges capacity to produce oil (potential supply) outstrips demand.
"Peak" oil supposedly wasn't about politics (it real is ONLY about politics and scare mongering), but about geological limits.
Truth be told, we aren't even close to geological limits of oil production as this post points to.
Without "Peak" oil effecting the market, oil prices could continue to go down because it's estimated that a significant portion of the price of oil was caused by "Peak" oil concerns.
$80 a barrel oil, here we come!
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