Green Energy
Iranian President Ahmadinejad says we need him more than he needs us. Guy Caruso, the EIA chief agrees with him:
WASHINGTON (Reuters) - A disruption in Iran's crude oil exports because of a dispute over that country's nuclear program would affect an already tight global oil market and lead to higher petroleum prices, the head of the U.S. Energy Information Administration warned on Tuesday.
"The market is so tightly balanced, clearly, we can't afford to lose a large supply of crude to the market," EIA chief Guy Caruso told Reuters in an interview.
Even though the United States does not directly import Iranian crude, Caruso said a cutoff of Iran's oil would affect the U.S. market because other countries that buy Iranian crude would compete with America to find new supplies.
"It's a fungible world oil market, and any disruption in supply affects everyone, because the price would go up for everyone," he said.
No kidding. Boy, that EIA chief sure does know his economics.
I sure am getting tired of this meme about Iran having so much pull in the oil market.
Let's look at the numbers from the EIA website:
Iran produces 4 million barrels of oil a day.America is the 3rd largest oil producing nation at 8.59 million barrels a day. Iran is the 4th largest oil producing nation. We produce twice the amount of oil Iran produces. We use 20 million barrels a day, which means we import 12 million barrels a day.
Saudi Arabia produces 10 million barrels a day, and Russia produces 9 million a day. Russia exports almost 7 million barrels a day. There are 14 oil exporting nations which export more than 1 million barrels a day. Half of them are non-Opec countries.However, Venezuela is one of the major exporting countries, as 2.3 million barrels a day, and they aren't exactly our friends either. America imports oil from over 100 nations.
Iran represents less than 3% of the total oil in the world. In fact, it is somewhat less.
Why would losing 3% of the worlds oil render the United States incapable of acting?
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Green Energy
Energy Information Administration Chief Agrees With Ahmadinejad
Iranian President Ahmadinejad says we need him more than he needs us. Guy Caruso, the EIA chief agrees with him:
WASHINGTON (Reuters) - A disruption in Iran's crude oil exports because of a dispute over that country's nuclear program would affect an already tight global oil market and lead to higher petroleum prices, the head of the U.S. Energy Information Administration warned on Tuesday.
"The market is so tightly balanced, clearly, we can't afford to lose a large supply of crude to the market," EIA chief Guy Caruso told Reuters in an interview.
Even though the United States does not directly import Iranian crude, Caruso said a cutoff of Iran's oil would affect the U.S. market because other countries that buy Iranian crude would compete with America to find new supplies.
"It's a fungible world oil market, and any disruption in supply affects everyone, because the price would go up for everyone," he said.
No kidding. Boy, that EIA chief sure does know his economics.
I sure am getting tired of this meme about Iran having so much pull in the oil market.
Let's look at the numbers from the EIA website:
Iran produces 4 million barrels of oil a day.America is the 3rd largest oil producing nation at 8.59 million barrels a day. Iran is the 4th largest oil producing nation. We produce twice the amount of oil Iran produces. We use 20 million barrels a day, which means we import 12 million barrels a day.
Saudi Arabia produces 10 million barrels a day, and Russia produces 9 million a day. Russia exports almost 7 million barrels a day. There are 14 oil exporting nations which export more than 1 million barrels a day. Half of them are non-Opec countries.However, Venezuela is one of the major exporting countries, as 2.3 million barrels a day, and they aren't exactly our friends either. America imports oil from over 100 nations.
Iran represents less than 3% of the total oil in the world. In fact, it is somewhat less.
Why would losing 3% of the worlds oil render the United States incapable of acting?
- U.s. Seen As Biggest Oil Producer After Overtaking Saudi Arabia
From Bloomberg: The U.S. will remain the world’s biggest oil producer this year after overtaking Saudi Arabia and Russia as extraction of energy from shale rock spurs the nation’s economic recovery, Bank of America Corp. said. U.S. production of...
-
myway: Iran warns Gulf Arabs on oil By TAREK EL-TABLAWY CAIRO (AP) - Iran warned Gulf Arab oil producers against boosting production to offset any potential drop in Tehran's crude exports in the event of an embargo affecting its oil sales, the latest...
-
In 6 years America will become the world’s largest oil producer once again “America is poised to become the world’s largest oil producer once again — nearly four decades after it lost the title,” writes The Sunday Times. Goldman Sachs,...
-
There's a shocking amount of energy being found From Ace of Spades:Here's a linkfest for news about shale gas, oil from shale rock,tar sands and such. We keep finding more of it. It'd be nice if we were able to USE more of it in the US. They...
- Uh Oh..opec Has Troubles !
OPEC sees 'devastating contraction' in oil demand OPEC again revised down its estimate for world crude demand on Wednesday, saying a "devasting contraction" in consumption would keep prices under pressure in the months ahead. "In...