Saudi Arabia and OPEC Want Oil Prices to Rise to $60 in 2017


#1

I just read an article about Saudi Arabia and OPEC wanting to raise oil prices to 60 dollars a barrel. They had to lower it to get rid of US shale oil competition. They also want new oil fields. Problem is that there isn’t enough demand.

For a few years, I remember there being a discussion about Peak Oil. There was a lot of talk about it. Being the end of the world. Causing a collapse. But I stopped hearing about it after 2008. Supposedly demand would outgrow supply and it would result in doomsday or something?

What happened?


#2

In the simplest of terms, two things happened.

  1. We found more oil.

  2. Oil became more extractable.

These are also the two biggest problems that Saudi and the OPEC cartel has, because both of these things happened outside the oil fields that they control.

Saudi and the rest of the OPEC cartel can “want” oil to go back to $60 a barrel. That doesn’t mean it is going to happen.


#3

The timing was completely off. The thought was that oil production had a maximum that would be reached soon, while international petroleum demand kept increasing.

New petroleum drilling procedures like fracking, new oil fields and it was pushed back. Initially the theory said it’d occur in 1970.

Peak oil will happen but the current thinking is that non-oil energy will catch up by then.