U.S. domestic oil production at record high, may exceed Saudi output

As disappointing and peculiar as it may be, this is the “free market” at work.

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U.S. oil production soars toward record

By JONATHAN FAHEY
Wednesday, October 24, 2012
6:07 AM
The Associated Press

NEW YORK – U.S. oil output is surging so fast that the United States could soon overtake Saudi Arabia as the world’s biggest producer.

Driven by high prices and new drilling methods, U.S. production of crude and other liquid hydrocarbons is on track to rise 7 percent this year to an average of 10.9 million barrels per day. This will be the fourth straight year of crude increases and the biggest single-year gain since 1951.
The boom has surprised even the experts.

“Five years ago, if I or anyone had predicted today’s production growth, people would have thought we were crazy,” said Jim Burkhard, head of oil markets research at IHS CERA, an energy consulting firm.

The Energy Department forecasts that U.S. production of crude and other liquid hydrocarbons, which includes biofuels, will average 11.4 million barrels per day next year. That would be a record for the U.S. and just below Saudi Arabia’s output of 11.6 million barrels. Citibank forecasts U.S. production could reach 13 million to 15 million barrels per day by 2020, helping to make North America “the new Middle East.”

The last year the U.S. was the world’s largest producer was 2002, after the Saudis drastically cut production because of low oil prices in the aftermath of 9/11. Since then, the Saudis and the Russians have been the world leaders.

The United States will still need to import lots of oil in the years ahead. Americans use 18.7 million barrels per day. But thanks to the growth in domestic production and the improving fuel efficiency of the nation’s cars and trucks, imports could fall by half by the end of the decade.

The increase in production hasn’t translated to cheaper gasoline at the pump, and prices are

Pussy Riot: Now that Putin’s in charge again, the gulags aren’t all that bad!

People everywhere cry for freedom.

Oppression of political speech?

Or something else?

Putin asked the courts to go easy on them.

And yet, cries of ‘six more years’ was not heard after the verdict was rendered.

Either way, Putin‘s gotta’ go.

Reckon Aleksandr Solzhenitsyn is turning over in his grave?

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Russia: Pussy Riot and the investor

August 17, 2012 5:28 pm by Stefan Wagstyl

Members of the all-girl punk rock band Pussy Riot have been recently convicted in Russian court of “hooliganism,” for performing an impromptu song in a Russian Orthodox Church which was critical of Russian President Vladimir Putin.

On the face of it, there would appear to be little reason why foreign investors should worry much about Russia’s Pussy Riot court case.

So what if three young female punks have been jailed for two years, as they were on Friday, for hooliganism after a noisy performance in Moscow’s Christ the Saviour Cathedral? After all, there are many western countries where such a provocative public display would also result in prosecution.

But that is to misunderstand Russia. In fact, the case should give even the most hard-headed international business people pause for thought.

First,  it’s a reminder – not that we need one – of the heavy-handed arbitrariness of the Russian courts. The three women could have been

Oil prices crashed and Chevron still made nearly $24 a barrel

Must be something to what those kooky Occupy Wall Street type folks, and the evil Democrats are saying.

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By Ronald D. White; July 27, 2012, 1:32 p.m.

Take just about any business situation in which the value of a company’s primary product suddenly falls by more than 29% and it could be time to panic. Then there is the oil patch, where billions of dollars in profits are possible even after that kind of collapse in crude prices. Chevron Corp. of San Ramon, Calif., is just such an example.

Even with the sharp drop in oil prices that began in the first quarter and ran through the end of the second quarter — a decline from $109.41 a barrel to $77.69 a barrel — Chevron had a positive margin of $23.53 on every barrel of crude it produced, according to analysts. Chevron said its margin was actually $26 a barrel.