Oil is a sacred cow not to be touched. Silent Weapons for Rapidest Oil Wars How can Keeping oil prices high ? For what reason(s) overnight the oil world and the strategy scene changed ? How Oil can finds a new King ?

[Dr.Masih Rezvani + 27]

Oil is a sacred cow not to be touched. 
Silent Weapons for Rapidest Oil Wars
How can Keeping oil prices high ?
For what reason(s) overnight the oil world and the strategy scene changed ?
How Oil can finds a new King ?
With evolving and increasingly sophisticated econometric tools to describe and ‘map’ the total economy and its energy requirements well into the future, and having engineered the transformation of the economy of the world from coal-driven rail to oil-driven transport, the Standard Oil group, their allies at OPEC, became increasingly concerned that their carefully constructed edifice of world oil domination might collapse if too much oil were to suddenly flood the market. 
Saudi Arabia has already begun four periods of price war.
The last price war has been the most severe ever, considering the price drop measure.
Black: 1985-1986
Red: 1997-1999
Blue: 2014-2016
Yellow: WTI Current price war based on price

Saudi Aramco to boost crude oil production from April 1
In the recently escalated tussle over crude oil prices between the Saudi Arabia and Russia, the former has alleged to flood the market with crude oil supplies and lower its prices, when its three year OPEC deal with Russia is due to expire.

In a latest statement, amidst an unprecedented instability in the global energy markets, Saudi Aramco has stated to facilitate its customers with 12.3 million bpd of crude oil from the current 9.7 million bpd in the month of April. The output is an additional increase of 300,000 bpd over the syndicate’s maximum output capacity of 12 million bpd. The said volumes will be provided starting April 1, 2020. 

The energy market earlier this week witnessed an instability and triggered a sharp drop in crude oil prices, when the OPEC failed to reach an agreement for the oil production curbs with its allied producers at the Vienna last weekend.

A few other OPEC producers like Nigeria and Iraq have also stated their plans to raise their oil output.
Also please have a look to :
https://www.reuters.com/article/us-oil-opec-saudi-idUSKBN21022H

 

[Влад Щербаков 0]

4 hours ago, Dr.Masih Rezvani said:

Oil is a sacred cow not to be touched. 
Silent Weapons for Rapidest Oil Wars
How can Keeping oil prices high ?
For what reason(s) overnight the oil world and the strategy scene changed ?
How Oil can finds a new King ?
With evolving and increasingly sophisticated econometric tools to describe and ‘map’ the total economy and its energy requirements well into the future, and having engineered the transformation of the economy of the world from coal-driven rail to oil-driven transport, the Standard Oil group, their allies at OPEC, became increasingly concerned that their carefully constructed edifice of world oil domination might collapse if too much oil were to suddenly flood the market. 
Saudi Arabia has already begun four periods of price war.
The last price war has been the most severe ever, considering the price drop measure.
Black: 1985-1986
Red: 1997-1999
Blue: 2014-2016
Yellow: WTI Current price war based on price

Saudi Aramco to boost crude oil production from April 1
In the recently escalated tussle over crude oil prices between the Saudi Arabia and Russia, the former has alleged to flood the market with crude oil supplies and lower its prices, when its three year OPEC deal with Russia is due to expire.

In a latest statement, amidst an unprecedented instability in the global energy markets, Saudi Aramco has stated to facilitate its customers with 12.3 million bpd of crude oil from the current 9.7 million bpd in the month of April. The output is an additional increase of 300,000 bpd over the syndicate’s maximum output capacity of 12 million bpd. The said volumes will be provided starting April 1, 2020. 

The energy market earlier this week witnessed an instability and triggered a sharp drop in crude oil prices, when the OPEC failed to reach an agreement for the oil production curbs with its allied producers at the Vienna last weekend.

A few other OPEC producers like Nigeria and Iraq have also stated their plans to raise their oil output.
Also please have a look to :
https://www.reuters.com/article/us-oil-opec-saudi-idUSKBN21022H

 

your information is outdated

https://www.reuters.com/article/us-global-oil-iraq-freight/saudi-arabia-iraq-say-they-will-not-compensate-for-oil-freight-rate-jump-documents-idUSKBN2161BT

[Meredith Poor + 883]

It's worthwhile at this point to visualize several graphs superimposed on each other:

1. Total growth in oil demand. This is rising, although slowly. Right now it isn't, but it is expected to resume when the current crisis abates.

2. Available capital. This is the amount of money that is hoping to earn income. This number has been rising faster than demand for oil.

3. Interest income. This has been shrinking. One of the problems with oil pricing in 2014 was that as returns on other asset classes dropped to zero (or even negative) more and more money piled into energy generically and oil specifically. With the fracking revolution, there was plenty of money to go around, and there were lots of projects available for investment. Capacity skyrocketed.

4. Competing energy technologies. This breaks down into:

4a. Natural gas substitution for diesel or heavy oil. Oil demand shrinks when it is possible to run ships, locomotives, trucks, or buses on some form of natural gas. Natural gas is both clean(er) and cheap.

4b. Wind and solar power. In some cases this is being used to charge electric vehicles, in others it is competing with gas-fired electricity generation. Fossil fuels are removed from the picture entirely.

5. Cost and capacity progress on the renewable energy technologies. 4b above represents the trend to date. As RE continues to grow, individual components and installation sizes are growing, sometimes massively. Deployment rates are rising exponentially.

6. Efficiency. The current generation of commercial airliners gets 20% better range than earlier models. Many other optimizations are made up and down the supply chain. Revenue earned per unit of energy expended rises steadily.

7. Political consensus. Countries in various parts of the world are restricting or prohibiting certain kinds of engines, or use of these engines in particular places. This applies to diesel in urban areas of much of Europe, but will eventually apply to all vehicles in some countries.

Much of the 'problem' with oil has less to do with migration to alternatives than it has to do with the flood of money, and the available technology, to expand and improve energy extraction. There are simply too many actors and too much capacity in the market. One strategy in that scenario is to simply weed out the highest cost producers. Countries that depend on oil revenues to sustain their governments are particularly exposed. The only countries that 'really don't care' are the US, Norway, and perhaps Kuwait - everyone else is in trouble.

In the US, oil revenues are divided into operation expenses, severance taxes, and investor returns (if any). There is no mandate to allocate income for other purposes, such as government programs or social mandates. This discipline is being imposed on every oil producing country in the world. Income above and beyond production cost is no longer available.

Edited March 21, 2020 by Meredith Poor
Add one more point.

[markslawson + 1,042]

11 hours ago, Meredith Poor said:

Wind and solar power. In some cases this is being used to charge electric vehicles, in others it is competing with gas-fired electricity generation. Fossil fuels are removed from the picture entirely.

5. Cost and capacity progress on the renewable energy technologies. 4b above represents the trend to date. As RE continues to grow, individual components and installation sizes are growing, sometimes massively. Deployment rates are rising exponentially.

This I would consider extremely optimistic. Wind and solar do not compete with gas.. gas is required to make wind and solar work. While there has indeed been an increase in renewables all of it can be attributed to government intervention of one kind or another. Further increases depend entirely on government willingness to increase support for renewables.. 

[Haruna junior + 1]

On 3/21/2020 at 4:07 PM, Dr.Masih Rezvani said:

Oil is a sacred cow not to be touched. 
Silent Weapons for Rapidest Oil Wars
How can Keeping oil prices high ?
For what reason(s) overnight the oil world and the strategy scene changed ?
How Oil can finds a new King ?
With evolving and increasingly sophisticated econometric tools to describe and ‘map’ the total economy and its energy requirements well into the future, and having engineered the transformation of the economy of the world from coal-driven rail to oil-driven transport, the Standard Oil group, their allies at OPEC, became increasingly concerned that their carefully constructed edifice of world oil domination might collapse if too much oil were to suddenly flood the market. 
Saudi Arabia has already begun four periods of price war.
The last price war has been the most severe ever, considering the price drop measure.
Black: 1985-1986
Red: 1997-1999
Blue: 2014-2016
Yellow: WTI Current price war based on price

Saudi Aramco to boost crude oil production from April 1
In the recently escalated tussle over crude oil prices between the Saudi Arabia and Russia, the former has alleged to flood the market with crude oil supplies and lower its prices, when its three year OPEC deal with Russia is due to expire.

In a latest statement, amidst an unprecedented instability in the global energy markets, Saudi Aramco has stated to facilitate its customers with 12.3 million bpd of crude oil from the current 9.7 million bpd in the month of April. The output is an additional increase of 300,000 bpd over the syndicate’s maximum output capacity of 12 million bpd. The said volumes will be provided starting April 1, 2020. 

The energy market earlier this week witnessed an instability and triggered a sharp drop in crude oil prices, when the OPEC failed to reach an agreement for the oil production curbs with its allied producers at the Vienna last weekend.

A few other OPEC producers like Nigeria and Iraq have also stated their plans to raise their oil output.
Also please have a look to :
https://www.reuters.com/article/us-oil-opec-saudi-idUSKBN21022H

 

I actually perceive the price war as a planned and staged drama to drive out the Shale oil out of the market. Oligopolists are known for such.