A Day in History: Oil Consumers Blink

So will today, June 22, 2008, be the day the world began to change?

Unless you’re living under a rock, you know that energy prices and anything associated with it (which i is everything) have been going through the roof.

You likely also know about the meeting today between Oil Consumers and Producers (or more precisely, “importers” and “exporters”) today in Jeddah, Saudi Arabia.

Basically, the consumers of the world are starting to freak out. Especially the United States as they have had the easiest energy road in the past 60 years and are feeling the deepest effects in terms of affect on the economy. (There are other countries where people are unable to eat because of the energy prices, but whatever, they just need to suck it up right? *gag*)

Anyway, the crux of the post is this.

Saudi Arabia has pledged to boost production to 12.5mbd by 2009.


But wait… as you can see here they promised that in 2005 and again last year.

And the result? Since 2004, production has remained flat at around 9.5mbd.

So what does that tell YOU? I know what it tells me… it tells me that they’re just blowing smoke and are telling everyone (you, me, “speculators”) what they want to hear to keep prices down and the pressure off them from their allies, and biggest customers, in the West.

Well. Today, after all the gnashing of teeth by Presidents, Prime Minsters, Energy Ministers and Secretaries… we get more of the same… nothing. And today, the message our Presidents and Prime Ministers and the MSM are taking home is “conserve”. “Turn the lights off”.

This is called the energy plateau, folks. Lets hope the inevitable decline isn’t too steep.

addendum: and it looks like oil markets are currently agreeing with this sentiment as they opened a few hours ago in Asia.
June 22 Opening hours oil trading

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