Thought for the day

What do you think?


OPEC sells oil for $136.00 a barrel.
OPEC nations buy U.S. grain at $7.00 a bushel.
Solution: Sell grain for $136.00 a bushel.
Can't buy it? Tough! Eat your oil!
Ought to go well with a nice thick grilled filet of camel ass!!!

Not mine, but in total aggreement!
Funny but misinformed. OPEC doesn't set the price of crude anymore (link) and insists recently increased production is sufficient to meet global needs. As I have only just posted elsewhere, certain speculators have bought a lot of future oil production 'on account' and thus hiked up the cost. I'd dearly love to see them catch a cold with prices falling owing to increased worldwide production and lower consumption but this is unlikely to happen while oil companies continue panic-buying.


Lantern Swinger
The recent Saudi increase in output amounts to (I believe) 500,000 barrels/day (1barrel = 159 litres/35 Imperial gallons/0.16 cubic metres).

The FPSO (Floating Production, Storage and Offloading) vessel that I am currently working on in Sembawang has a storage capacity of approximately 700,000 barrels and is classed as an "Aframax size" tanker. As such, she is not in the largest working tanker size league.

So, the recent increase in production in reality means that every day of the year you will have less than one more Aframax size tanker sailing/loading/discharging somewhere in the world.

I do not have recent figures of crude consumption for Europe, USA, China, India etc. etc. but the point is that one more ship load per day is not going to make that much difference.

We must also look at refining capacity - there is no point in producing more oil if there is limited refining capacity which there most certainly is. Again I do not have figures to hand.

Add to this the fact that Shell has shut down the Bonga FPSO offshore Nigeria after a terrorist scare (production capacity of 200,000 bopd) and you see that nothing has really changed.

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