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by Tallmanok2 from Wayne, Mi

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Saudi to boost oil production
Jun 15, 2008 | 6:36 PM
Category: News
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UN chief: Saudi to boost oil production

AP Posted: 2008-06-15 17:43:44 RIYADH, Saudi Arabia (AP) - Saudi Arabia plans to increase its oil production by 200,000 barrels a day next month, the kingdom's oil minister told U.N. chief Ban Ki-moon on Sunday, according to Ban's spokesman.

The U.N. secretary-general met with Oil Minister Ali al-Naimi in the port city of Jiddah during a one-day trip to the world's largest oil producer.

Farhan Haq, a spokesman who is traveling with Ban, said in an e-mail that the U.N. chief said al-Naimi told him Saudi Arabia would increase oil production by 200,000 barrels a day from June to July. In May, the kingdom increased its production by 300,000.

By July, production should be at 9.7 million barrels a day, Haq said.

Ban also said Saudi Arabia understands that the current price of oil, which topped $139 per barrel earlier this month, is not normal, according to the official Saudi Press Agency.

"The king believes that the current oil prices are abnormally high, and he is ready to restore prices to their appropriate levels," SPA quoted Ban as telling reporters in Jiddah. The report carried by SPA was in Arabic, and it did not say what language Ban spoke in.

Saudi Arabia is concerned that sustained high oil prices will eventually slacken the world's appetite for oil, affecting the kingdom in the long run.

The kingdom has called for a meeting of oil producing and consuming countries on June 22 in Jiddah to discuss ways of dealing with soaring energy prices.

The New York Times reported on Saturday, citing unnamed analysts and oil traders briefed by Saudi officials, that a production increase of about 500,000 barrels per day was to be announced following the meeting.

On Saturday, al-Naim's adviser told The Associated Press that the minister would address the production increase reports the next day. But on Sunday, the adviser, Ibrahim al-Muhanna, said there was no meeting to address the reports scheduled.

Further attempts to reach al-Muhanna by phone later Sunday went unanswered.

Saudi Arabia, the world's largest oil producer, is concerned that sustained high oil prices will eventually slacken the world's appetite for oil, affecting the kingdom in the long run.

Crude prices have reached record highs, surpassing $139 per barrel on June 6 after surging nearly $11 in the biggest single-day price leap ever.

The prices had receded by Friday, with the benchmark light, sweet crude for July delivery falling $1.88 to settle at $134.86 on the New York Mercantile Exchange. In London, July Brent crude lost $1.84 to settle at $134.25 on the ICE Futures exchange.

The current president of the Organization of Petroleum Exporting Countries, Chakib Khelil, has said that the cartel will make no new decision on production levels until its Sept. 9 meeting in Vienna. OPEC ministers often follow the lead of the Saudis when discussing whether to increase production to take the pressure off rising prices.

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Member Comments Total Comments: 11
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teaspoone101 read my blog
Jun 16, 2008 | 8:57 PM

Are they NUTS we'll run out quicker.....maybe less painful that way
Tallmanok2 read my blog view my photos
Jun 17, 2008 | 4:32 AM

Tea,

Were not running out of oil. The reason prices have gone so high is speculators. They buy the oil and hold on to it. They won't sell until the price goes even higher. The Saudi's said just a couple of weeks ago they were producing enough oil. They are now making more than we need to try to lower the price. If it's to high they know we will develop different ways to operate our vehicles. Carl Levin on May 12 gave a great speech explaining what is really going on with the cost of Oil and even Gas.
chiefpa17
Jun 17, 2008 | 3:17 PM

Tall, I agree with you regarding the oil supply. I am retired and on a fixed income. The gas prices are outstripping my income. This coupled with the falling financial markets has spelled disaster for many of us who are retired with limited resources.
The problem lies with a government who for the last 30 years has ignored all the warning signs to appease the special interest groups. Both Republicans and Democrats have failed miserably now it is too little to late.
Tallmanok2 read my blog view my photos
Jun 17, 2008 | 5:34 PM

Pa boy are you right this durg gap for medications is an awful lot to come up with.
Mikey66 read my blog view my photos
Jun 18, 2008 | 11:22 AM

BIG DEAL , SO THERE GOING TO RAISE THE OUTPUT 200,000 BARRELS A DAY ,THAT'S A DROP IN THE BUCKET, ITS ALSO FUNNY HOW THEY ARE WAITING TO INCREASE PRODUCTION UNTIL MID JULY AFTER THE HOLIDAY WHEN THEY KNOW THERE MORE DEMAND ,ITS ALSO FUNNY THE U.S GOVT SAID THAT EVEN IF THE PRICE PER BARREL DROPS TO $100.00 GAS WILL STILL REMAIN AT $4.00 A GALLON ,NOW I ALWAYS HEARD THAT THE PRICE PER BARREL CONTROLS PRICES AT THE PUMP ,PLUS WE JUST STARTED THE HURRICANE SEASON ,THIS COUNTRY JUST NEEDS ANOTHER KATRINA AND PRICES AT THE PUMP WILL BE DOUBLE
notforobama read my blog view my photos
Jun 18, 2008 | 12:53 PM

no oil was spilled from the hurricane's that hit the gulf !!!! so there is not much to worry about except higher fuel prices if we don't drill ........................... lets start drilling and then the speculators will raise the prices again then we should open up th stategic reserves and they will lose a ton of money and stop thier speculation bullschit and prices will drop by november of 08 by half and when the oil starts comming out of the schell rock and off the coasts plus some from awra then the prices will again drop and we will be free from buying foreign oil
if we all get together on this the people in washington will have to listen to us if not then i'm sure you all heard that china and russia are fighting to drill off of cuba's coast and they don't care what color that sand is on our coast lines !!
marygrove read my blog
Jun 19, 2008 | 1:21 PM

I don't see why the big shock. The bottom line is oil companies have steadily increased gasoline prices over the last several years for profits. They use whatever excuse that comes to mind. Now that it's summer that will be the reason. Next it'll be gas guzzlers with big engines, then supply&demand. Whatever! Do any of you remember when big, heavy cars with large engines was the rule? Since then we've come up with "economy cars", Car materials are so thin you can barely lean on one with out getting a dent. The point is the oil companies are not suffering, this countries executives make an average of $12 million. Our government leader George Bush (from a family who made its fortune from oil investments) claims he had no clue gas had reached $4 per gal. It's all a big joke to everyone but the consumer who is being screwed.
marygrove read my blog
Jun 19, 2008 | 1:25 PM

The 12 million dollars I referred to was the average salary of oil company executives.
notforobama read my blog view my photos
Jun 19, 2008 | 3:22 PM

it don't matter who's in office if we don't start working on our own energy plan we'll be left behind i think if we start drilling in places like off our coast lines and start getting oil out of schel rock and some drilling in anwr then we can sustain ourselfs without going broke untill we come up with different energy like nuclear power, wind,solar ect we will be truly independent from foreign oil and never have to look back if we don't then china,russia,among other countries will be getting oil off our coastlines and they don't really care if they do a little damage to our enviroment!
marygrove read my blog
Jun 19, 2008 | 9:51 PM

notforobama : If it doesn't make a difference in this important matter, why your name? The policies that President Bush and his father before him have supported have been self-centered and in favor of antiquated production methods and facilities. These policies have ensured continued profits to oil companies both here and abroad. They have not brought one single company to task. The consumer has taken the brunt of these follies. The President didn't even know the current price of gas. The we you refer to notforobama, is represented by our president. He sets the tone(creating an enviroment) and the pace (action plans and implementation).
notforobama read my blog view my photos
Jun 20, 2008 | 8:15 AM

or inaction as far as the energy crisis goes the democrat party is the folks that are holding us back from being free from foreign oil if the far left liberals would cut some of that red tape then smaller oil companies could compete against the big oil companies for the oil that this great country holds as it stands now it is too expensive for them to try and produce but big oil ie; exxon , texico, ect are the ones that hold the contracts to the leased land cut the red tape and we could have companies like spindle top and rig bros tapping that oil these small companies are whatmade this country great back in the 60,s and 70,s lets get em going again !!
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Tallmanok2

I am an American Indian. I developed Muscular Dystrophy in 2001 at the ripe old age of 44. I spend my days mostly on line and with my wife, and kids. I guess you could say I'm a Democrat but I am most interested in what any candidate can do to improve the world in which we live. I know I really spell poorly but I take solace in the fact that neither could Einstein. LOL

Member Since: 10/3/2006


 

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