{"id":23000,"date":"2017-02-25T19:21:38","date_gmt":"2017-02-26T00:21:38","guid":{"rendered":"http:\/\/olduvai.ca\/?p=23000"},"modified":"2017-02-25T19:21:38","modified_gmt":"2017-02-26T00:21:38","slug":"bankrupting-opec-one-million-barrels-of-oil-at-a-time","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=23000","title":{"rendered":"Bankrupting OPEC… One Million Barrels Of Oil At A Time"},"content":{"rendered":"

Bankrupting OPEC… One Million Barrels Of Oil At A Time<\/a><\/h3>\n
The world hasn\u2019t really caught on yet, but OPEC is in serious trouble.\u00a0 Last year, OPEC\u2019s net oil export revenues collapsed.\u00a0 How bad?\u00a0 Well, how about 65% since the oil price peaked in 2012.\u00a0 To offset falling oil prices and revenues, OPEC nations have resorted to liquidating some of their foreign exchange reserves.<\/div>\n

The largest OPEC oil producer and exporter, Saudi Arabia, has seen its Foreign Currency reserves plummet over the past two years\u2026 and the liquidation continues.\u00a0\u00a0For example, Saudi Arabia\u2019s foreign exchange reserves declined another $2 billion in December 2016<\/strong>\u00a0(source:\u00a0Trading Economics<\/a>).<\/p>\n

Now, why would Saudi Arabia need to liquidate another $2 billion of its foreign exchange reserves after the price of a barrel of Brent crude jumped to $53.3 in December, up from $44.7 in November??\u00a0 That was a 13% surge in the price of Brent crude in one month.\u00a0 Which means, even at $53 a barrel, Saudi Arabia is still hemorrhaging.<\/p>\n

Before I get into how bad things are becoming in Saudi Arabia, let\u2019s take a look at the collapse of OPEC net oil export revenues:<\/p>\n

<\/p>\n

The mighty OPEC oil producers enjoyed a healthy $951 billion in net oil export revenues in 2012.\u00a0 However, this continued to decline along with the rapidly falling oil price and reached a low of $334 billion in 2016.\u00a0 As I mentioned before, this was a 65% collapse in OPEC oil revenues in just four years.<\/p>\n

The last time OPEC net oil export revenues was this low was in 2004.\u00a0 OPEC oil revenues that year were $370 billion based on average Brent crude price of $38.3.\u00a0 Compare that to $334 billion in oil revenues in 2016 on an average Brent crude price of $43.5 a barrel.<\/p>\n

This huge decline in OPEC oil revenues gutted these countries foreign exchange reserves.\u00a0 Which means, the falling EROI- Energy Returned On Investment is taking a toll on the OPEC oil exporting countries bottom line.\u00a0 A perfect example of this is taking place in Saudi Arabia.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n","protected":false},"excerpt":{"rendered":"

Bankrupting OPEC… One Million Barrels Of Oil At A Time The world hasn\u2019t really caught on yet, but OPEC is in serious trouble.\u00a0 Last year, OPEC\u2019s net oil export revenues collapsed.\u00a0 How bad?\u00a0 Well, how about 65% since the oil price peaked in 2012.\u00a0 To offset falling oil prices and revenues, OPEC nations have resorted […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[3],"tags":[4654,14903,595,600,14206],"class_list":["post-23000","post","type-post","status-publish","format-standard","hentry","category-energy-2","tag-eroi","tag-oil-export-revenues","tag-oil-production","tag-opec","tag-srsrocco"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23000"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23000\/revisions"}],"predecessor-version":[{"id":23001,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/23000\/revisions\/23001"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}