AUGUST 31, 2016
Contact: Dr. Daniel Fine, Tom Cambridge
The Panhandle Import Reduction Initiative (PIRI)
Dr. Daniel Fine @ 505-771-1865, Tom Cambridge @ 806-358-7744
Southwest Oil Independents warning to Saudi Arabia
Carlsbad, New Mexico - Texas and New Mexico oil companies and communities will warn Saudi Arabia and OPEC to stop overproduction of oil and lower prices as a strategy to slow or shut them down or face import quotas.
This is the challenge of independents at the Panhandle Initiative to Reduce Imports (PIRI) at an industry and public rally in Carlsbad on September 27th. It will go from 11:30 A.M. to 2:00 P.M. and will be held with a free lunch and admission at the Pecos River Village Convention Center, 711 MUSCATEL AVE, CARLSBAD, NM 88220
Southwest and Rocky Mountain oil producers are under OPEC and Saudi Arabian attack . By 2019 they will capture the recovery of the demand for oil . OPEC is planning to force American consumers back to the 1990s of dependence
of imports of foreign oil.
The American oil industry, which has in the last 10 years created the technology of oil self-sufficiency, will survive without the smaller independent company pioneers in shale and their future risk-taking in finding oil. Integrated companies (with production and refining combined) will survive and
dominate in a second downturn with a smaller market share in America alongside potential 60% oil imports from foreign producers outside North America.
This summer’s crude oil price price recovery is unsustainable as Saudi Arabia expands capacity to supply most of the of the 2019 demand upturn worldwide. Price volatility should occur around geopolitical events such as military collision in the South China Sea.
The PIRI will present Dr. Daniel Fine and our strategic “White Paper” as the keynote along with oil and gas operators from the Delaware Basin (New Mexico Permian) and the San Juan Basin.
The oil and gas industry “bust” will be presented by Tom Taylor, Economic Development, Four Corners and Tom Dugan of Dugan Productions. Tom Cambridge will speak on the Panhandle of West Texas and John Yates, Jr., Yates Petroleum, on the Permian/Delaware.
More information about the Panhandle Import Reduction Initiative (PIRI) can be found on the PIRI website ->http://www.panimportreduction.org/ or by calling Dr. Daniel Fine at 505-771-1865 and Tom Cambridge at 806-358-7744
Texas and New Mexico can "warn" all they like but they have no authority to institute import quotas. Starting trade wars is generally a poor idea as they invite retaliation. OPEC is a convenient boogie man for those that do not understand that a majority of OPEC members would support a production freeze or even a slight reduction. Saudi Arabia is the controlling global producer and they will make decisions based on their interests with no fear of what the U.S. would do. The U.S. is not a major buyer of their crude. Banning Saudi, or for that matter all OPEC, imports would do little to change the global price of oil or effect their production volumes. The U.S. already gets the majority of crude imports from producers other than Saudi Arabia. And with current U.S. production, the total levels of crude imports are a small percentage of barrels consumed.
The U.S. consumed about 8.31 million barrels of oil in August, 2016. Of that total, 99,000 barrels came from OPEC and 33,105 of those barrels came from Saudi Arabia, so about 1% of U.S. monthly consumption from OPEC and 0.31% from Saudi Arabia. The premise of import quotas being a significant benefit to U.S. producers is not bolstered by the facts.