The World Energy Dilemma by Louis W. Powers

Saudi Arabia exports of crude were at a seven year high in 2012 as reported by Bloomberg News recently.  Yet Saudi Aramco did cut production in December 2012 and have continued that cut through January according to later reports.

http://www.bloomberg.com/news/2013-02-18/saudi-crude-exports-for-2012-reached-seven-year-high-data-show.html

Now that the Governor of Nebraska has okayed the alternate pipeline route through Nebraska and the State Department has approved the XL Pipeline from an enviormental threat standpoint what is our president waiting on?  What about the several thousand jobs the pipeline will create?  Are they not important in this time of unemployment.

http://www.newsmax.com/Newsfront/keystone-xl-oil-pipeline/2013/03/02/id/492763?s=al&promo_code=12A5B-1

This is a very important review of Saudi Arabia Energy Analyis by EIA  19 pages.  While I write in my book “The World Energy Dilemma” a critical analysis of past EIA forecasts this appears to me to be well thought out and a detail review of where the Saudi’s stand on Energy issues.  It discusses the need  for the Saudi’s to curb their growing apeitite for consuming liquid hydrocarbons, in order to maintain their export capability.

It does talk about the Saudi capacity of slightly under 12 million b/d and their need to offset their normal decline due to depletion.  It does not metion the Saudi potential fo develop substantial shale oil reseserves which the Saudis plan to explore starting this year.

On balance this article is worth downloading from the following link and taking the time to review.

http://us1.campaign-archive1.com/?u=eccfe5fcd268d2f33b066f0ea&id=7e13c72ae2&e=722a566f66

According to Bloomberg Feb 7, 2013 report the Saudis produced 9.05 Million Bbls/day in January while supplying some 9.26 Million Bbls/day making up the difference from inventory.  It is interesting to note how world crude prices have risen some 10 dollars per barrel plus or minus since the Saudis began their cut back in early December.  See the attached Bloomberg Feb 7, 2013 link.

http://www.bloomberg.com/news/2013-02-07/saudi-arabia-stabilizes-oil-output-as-opec-maintain-cap.html

This project has all ready been delayed to long.  Talk about jobs and secure energy supply.  This is a no brainer, President Obama.  Save your green supporters another trip to Washington where they will hopefully will be waisting their money and their gasoline.

http://www.pennenergy.com/articles/pennenergy/2013/api-applauds-keystone-xl-route-approval-from-nebraska-governor.html?cmpid=EnlDailyPetroJanuary232013

Article says Saudis cut back production in Dec 2012 to 9.025 mm bbls day per bloomberg  not becasue of price but due to surplus of world oil demand.  Somewhat confusing in that two go together.   While other world events also effect world crude oil prices such as the gas plant hostage taking in Algeria, as of today January 17, 2013 WTI crude oil prices in the last 6 weeks have risen over $10.00/bbl, risen all most on a weekly basis.  It is interesting to note that little news of the Saudi action hit the news until this week, as reported in the following, link.

http://www.bloomberg.com/news/2013-01-14/saudi-arabia-says-oil-production-cut-not-designed-to-boost-price.html

Reference from Reuters Dec 19. 2012 Report

http://uk.reuters.com/article/2012/12/19/uk-saudi-gas-price-idUKLNE8BI01Z20121219

Reference Bloomberg Article December  28th, 2012

http://www.bloomberg.com/news/2012-12-29/saudi-arabia-boosts-2013-spending-in-record-budget-state-tv.html

For a detailed OPEC Country report see the following which was posted on the Saudi U. S. Trade Association Site.

http://www.theoildrum.com/node/9646