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Saudi Update: They are turning on the spigot

February 24, 2011

Incredible claim from the Saudis:

“Right now, there are active talks in order to implement what is needed,” the Saudi oil official added. He stressed that the kingdom retained spare capacity of some 4m barrels a day – more than than double Libya’s entire output which totalled 1.58m b/d in January, according to the International Energy Agency.” [Italics mine]

Wow. “Stressed” – usually people aren’t lying when they stress they can do it right away.  It almost sounds like he is begging people to take more crude oil.  The 4m barrels is far beyond the estimates of spare capacity that I’ve seen.

And that isn’t all:

“Traders believe Saudi Arabia has the capacity to boost production by at least 1m b/d with just 24 hours notice, meaning that if a decision was adopted now, the oil tankers could be arriving in Europe within 10 days.”

Wow.  Just wow.  24 hours notice.

Iraq: Where is the oil?

Also, why isn’t Iraq just pumping out the oil right now?  A few trillion, and this is what we get? No oil extra oil during an oil crisis?

 

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