Monday, February 21, 2022

Why OPEC Won’t Open The Taps — Irina Slav

  • Middle Eastern OPEC producers have made it clear that they do not plan to increase production beyond the current OPEC+ quotas.
  • The producers believe that the current price rally has been driven by geopolitical factors rather than market fundamentals.
  • Saudi Arabia’s energy minister did recognize that years of underinvestment in oil exploration was now causing risks on the supply side.
The Saudis are the swing producers so they set the price.

Oilprice
Why OPEC Won’t Open The Taps
Irina Slav
https://oilprice.com/Energy/Energy-General/Why-OPEC-Wont-Open-The-Taps.html

See also at Oilprice

Oil Prices Will Hit $100 And Stay There - Vitol CEO
Irina Slav
https://oilprice.com/Energy/Energy-General/Oil-Prices-Will-Hit-100-And-Stay-There-Vitol-CEO.html

Michael Kern
https://oilprice.com/Latest-Energy-News/World-News/The-US-Will-Be-A-Net-Oil-Importer-In-2022.html

4 comments:

Peter Pan said...

They be tap dancing in the tar sands of Alberta?

Ahmed Fares said...

We'll be sure to send some of that oil money your way via equalization payments.

In Canada, the federal government makes equalization payments to provincial governments to help address fiscal disparities among Canadian provinces based on estimates of provinces' fiscal capacity—their ability to generate tax revenues. A province that does not receive equalization payments is often referred to as a "have province", while one that does is called a "have not province".

I believe you're a have not province.

For 2019–2020, the have not provinces are Quebec, Manitoba, Nova Scotia, New Brunswick, and PEI.

Ontario, Alberta, BC, Newfoundland & Labrador and Saskatchewan are the have provinces for 2019–2020. They get no equalization payments. Ontario has received equalization payments for a number of years but for this year they are at the average, so nothing for them this year.

Quebec will receive $13 billion, Manitoba will get $2.2 billion, Nova Scotia and New Brunswick will each receive just a hair over $2 billion and PEI scores $419 million.


A simple "thank you" would be nice...

Peter Pan said...

The Maritimes have always been a have not region. There will be no thank-you issued until the Trudeau Liberals are out of power.

Matt Franko said...

PEI mussels are the best….