Michael kors 0mk8006
Uncategorized / april 15, 2017

Saudi Arabia holds the lion’s share of OPEC spare capacity – in other words, oil left unused but which could be brought online quickly and sustainably if need be. Its exalted place among producers stems in part from its ability to convince the market that it can plug an unforeseen gap in supplies, and thus keep prices stable. But traders have balked for years at Riyadh’s claims that it can quickly ramp up its production as high as it says it can. Analysts are rightfully skeptical: after all, its assertions are based on untested assumptions, and the Kingdom has an incentive to overestimate them. Moreover, the Saudis are loath to give outsiders information about their domestic oil industry, a veil of secrecy that provides fodder for market speculation.Edward Morse, a former U.S. energy official who now leads Citigroup’s commodities research team, argued compellingly earlier this year that recent years’ changes to North American oil infrastructure have rendered the SPR “significantly less usable than advertised.” Many of the pipelines that could deliver the oil to market quickly can no longer move SPR oil. Instead, the oil would need to be exported by sea, a method that may take seven times longer…

Michael kors zebra print handbag
Uncategorized / april 15, 2017

Editor’s note: Blake Clayton is a fellow for energy and national security at the Council on Foreign Relations. He recently wrote a major new study on the U.S. Strategic Petroleum Reserve published by the Council, available here.The chaos in Libya, Egypt and elsewhere has the oil market on edge, and with good reason. But there is another scare among oil traders, much closer to home, one that could be catastrophic for gasoline prices if oil imports are disrupted this fall. But analysts are skeptical that the U.S. federal government is as functional as advertised. The Department of Energy has offered only a weak denial of these allegations. For a lesson in how a lack of transparency can end up hurting the very market it aims to calm, Washington need look no further than Saudi Arabia. Speculation among experts is rife that the U.S. Strategic Petroleum Reserve (SPR) is no longer able to release oil to the market as quickly as the Department of Energy claims it can. If true – and there is good reason to believe it is – it could destroy the White House’s ability to prevent oil prices from skyrocketing if the commotion in the Middle East…