I just love watching CNN’s reports on why oil prices continue to rise on the Iraqi crisis. Christine Romans does most of the reporting but she has become nothing more than a shill for Wall Street commodity traders.
Two days ago Romans was reporting that Iraqi oil production was 5 million barrels per day with a projection of 15 million. Today she’s lowered that number to “about 3 million”. The fact is, she doesn’t know – she simply goes on what she’s told by those who have an agenda. In truth, just before the crisis, Iraq’s production was about 2.5 million barrels per day. But that’s not the real story here.
Romans uses the Iraqi crisis to justify why oil and gas prices are on the rise here in the US, with gas already reaching the ungodly and unwarranted prices of 2008 just before the financial crisis. But that pig don’t fly. The US does not get the bulk of the oil produced in Iraq; China is the biggest recipient of Iraqi Oil. Since the beginning of this year we’ve imported less than 1 million barrels of Iraqi oil per month.
Per month! Got that? That’s 30,000 barrels of oil per day. Hell, you can’t find a major oil company any place on the face of the earth that would even bother putting in a facility for just 30K per day. In the Gulf of Mexico, for instance, anything less than 75 – 100,000 barrels per day is considered a waste of time for the big boys. For example, before I retired from the oil industry in 2007 I worked on a single facility that had once reached 240,000 barrels per day, but had declined to about 160,000 by the time I left.
We are currently producing 4.7 million barrels of oil per day in the GOM, therefore a measly 30K is hardly a drop in the bucket. So, no, CNN, a loss of 30K per day from Iraq isn’t enough to cause prices to leap the way they have over the past week — it’s your beloved Wall Street friends that’s simply using Iraq as an excuse to further line their pockets at the commoners expense – and yours too, I figure, since you’re making more-than enough money to invest heavily in Wall Street.