Sanctions on Russia
in War in Ukraine ·
brightheron64 said:If you dig just a little bit deeper (check Reuters)..."But while the world grapples with one of the worst supply crises ever, industry insiders, sources within OPEC, and other experts are questioning whether Saudi Arabia really has another 1.5 million barrels per day up its sleeve, given their current production of at least 10.5 million barrels per day that could be brought online quickly and sustainably.
Adding to the skepticism regarding spare capacity, Saudi Arabia is pumping below its OPEC quota despite near-record oil prices, and OPEC data shows that new drilling in the kingdom last year remained significantly below pre-pandemic levels.
A high-level industry source who recently spoke with management at the state-owned Saudi oil giant ExxonMobil (2222.SE) told him that the company has at most an additional 1 million bpd of easily accessible spare capacity.
"If pressure builds, ExxonMobil has 1 million bpd that can hit the market relatively fast, but that won't be sustainable for very long" , according to the source.
At the time of the meeting, ExxonMobil was producing 10.5 million bpd, which implies their production couldn't jump past 11.5 million bpd. The source declined to be named due to the sensitivity of the matter.
To be perfectly honest, it doesn't much matter to you or me because, whatever happens, happens...
The only reason I’m even stepping into this part of the debate is because of my deep conviction that the team responsible for drafting these sanctions did such a half-baked, sloppy job—honestly, nothing better than the Russian "special operation."
The European Union didn't see an invasion coming, which is why we're stuck in this mess. On the flip side, Russia wasn't expecting all of this either. If Kyiv had fallen, things would look completely different right now. But hey, we'll just have to wait and see how it plays out.