Oil: Crisis and collusion | The Economist

Crisis and collusion

The 50 years under OPEC have been eventful

Sep 14th 2010 | From The Economist online

OPEC, the cartel of oil producers, celebrates its 50th anniversary on September 14th. The organisation was founded in 1960 with the explicit purpose of manipulating oil prices by controlling supplies. It has generally proved successful. OPEC controls around 80% of the world's proven reserves and over 40% of the world's production among its 12 member states. The Gulf states that dominate OPEC have the biggest reserves and lowest costs, so can most easily turn the taps on and off when required to keep prices high. Despite the slow return to health of a sickly world economy, oil fetches a lofty $75 a barrel, which Saudi Arabia, OPEC's most influential member reckons is "ideal".

 

via economist.com JKP4FU87Q9N4

 

North Dakota Oil Production, proudly posted by Wade Dokken

This is a post that has nothing to do with annuities, fixed annuities, index annuities or WealthVest Marketing.  It only has to do with my home state of North Dakota and their amazing good fortune in oil.  Since 2008, oil production has doubled.  They are expected to pass all states except Alaska in total production.   The proven reserves are 200 billion barrels, dwarfing most known reserve pools in the world.  

ND's Record-Setting Oil Production Fuels Economic Boom with Record Employment, 3.6% Jobless Rate

 

 

Following an ongoing pattern that I have reported previously, North Dakota set more new records in July for monthly oil production (see top chart above, data here) and employment (see bottom chart above, data here).

There was a new record high of 321,042 barrels per day produced in July, which was a 1.83% increase from the previous record in June, and a 41% increase from July 2009.  From 156,420 barrels per day level in May 2008, daily oil production in North Dakota has now doubled to more than 321,000 barrels. 

As a direct result of the ongoing North Dakota oil boom, the state's economy is booming as well, with the lowest state jobless rate in the country of 3.6% in July, and recent jobs gains that completely offset all of the jobs lost during the recession, bringing North Dakota's employment to a record high in July of 373,500 (see bottom chart above).  July marks the fifth straight month of job growth in North Dakota, which totals to a cumulative gain of 7,700 jobs since February.     

 

via mjperry.blogspot.com