Summing up the latest oil production cuts in the world
"OPEC+ has announced that it is cutting Oil Production by 1 Million Barrels of Oil per day. This cut is in addition to the cut of 1.1 Million Barrels per day announced in April and 2 Million Barrels Per Day announced in October 2022. The reason for these cuts is to try to maintain Oil Prices however the strategy has not worked so far. In this video I provide more details of these cuts and look at the impact of falling prices and the Sanction Discounts on both the price of Russian Oil and Russia's revenue and discuss the future impact on the Russian Economy."
"Over the last seven months, OPEC + have announced cuts in production of 4,16 million barrels per day. Which compares with total global output of around 80 million barrels per day, represents over 5 % of global production".
(From the Youtube video "RUSSIAN $180 Billion Oil Disaster as Price Falls, Production Cuts & Sanction Discounts Hurt Russia" 11.6.2023)
(There are many articles that have written about the same thing lately. See for example the following: "Oil prices jump after Saudi Arabia vows to cut production again", by and , on CNN, June 4, 2023)
Has OPEC+ really done all these cuts yet? All? I very much doubt it. Maybe the latest of them will be implemented. We shall see. It can only be confirmed in the rearview mirror. The article "Platts Survey: OPEC+ production plunged by 670,000 bpd in May", by Oil & Gas 360, on June 9, 2023,
has something to say about it. So also "Argus" in the article "Opec+ output down as producers deliver cuts", on June 9, 2023.
But why does OPEC + do this? In an energy starved world? Peak Oil is wreaking havoc! We go to extremely expensive and dirty oil in the Canadian oil sands and in the shale oil fracking business!
I can only come up with four reasons:
1) There is a price war going on, and OPEC+ wants higher oil prices.
2) Most of OPEC+:s oil fields are aging and cost too much to operate at full speed.
2) They do it for conservation purposes. They simply save some oil for future generations.
4) They do it to prolong the lifespan of their oil fields. As some of you know, when an oil field is very aggressively pumped and exploited, year after year, with "Enhanced Oil Recovery", that is all kinds of complicated methods to get more oil out of the fields, and faster, then it has a shorter lifespan. It's logical.
Reuters had an article about this on April 3, 2023: "Why did OPEC cut oil production? Key reasons explained".
But these oil production cuts are really a thorn in the side of those who insist that the peak of "All Liquids" (all that is counted as "oil") is in front of us, and not in November 2018 (as many peakoilers think). Reuters touches this question in the article "OPEC+ cuts risk oil supply deficit, threaten economic recovery -IEA", by Noah Browning, on April 14, 2023.
Julianne Geiger writes about the slowing growth of US oil industry in the article "U.S. Drilling Activity Continues Its Slide" on www.oilprice.com, on
