Kuwait exceeded Dec OPEC quota on client Y2K worry

DUBAI, Jan 16 (Reuters) - Kuwait's oil minister said in remarks published on Sunday the emirate's December crude output had exceeded its pledged OPEC limit because clients wanted early deliveries to avoid possible millennium disruption.

``Many of our clients, who had oil shipments scheduled for January, asked to receive oil in December on fears of (Y2K) problems and this showed up as an increase in output during December and thus a decline in the level of our compliance,'' Sheikh Saud Nasser al-Sabah told the London-based daily al-Hayat.

``Secondary source studies for January will show a large reduction in our output for this reason. And I think that this justification applies to other states,'' he said. Kuwait has an OPEC (Organisation of the Petroleum Exporting Countries) output quota of 1.836 million barrels per day (bpd) and production capacity of about 2.4 million bpd.

A Reuters survey earlier this month found that Kuwaiti leakage increased in December, taking the emirate over two million bpd and leaving it little better than 50 percent compliant with its allocation under a production cut deal.

The survey indicated that OPEC supply restraints took a dive in December as high prices and refiner demand to cover possible millennium disruptions tempted producers to slip out extra barrels.

Strict OPEC compliance with the production cuts, which cut 4.32 million barrels a day from the 75 million bpd world market, has helped lift global oil prices dramatically from below $10 a barrel at the end of 1998.

OPEC's ministerial committee which met on Friday in Vienna strongly recommended that the group should extend production curbs beyond their March expiry date.

The prospect that OPEC and non-OPEC allies were leaning toward a policy of keeping supply limits intact sent oil prices to a nine-year high of $28.10 a barrel in New York on Friday, before closing at $28.02. London Brent futures jumped sharply to close at $25.46, a rise of $2.50 in a week.

Asked about consumer concerns if world oil prices rose above $25 a barrel, Sheikh Saud said ``The current price ($25) must continue for a long period of time for stability on the market and also to compensate for previous losses.''

``We must continue production cuts to improve prices.''

-- (pigs@do.fly), January 16, 2000

Answers

Further proof that these guys are gonna squeeze us for all we're worth. While there were SOME extra barrels floating around, I can confirm from inside the industry, that the majority of firms did NOT stockpile extra oil. They may have taken a cargo or two early rather than have one show up the first day of the year, but by and large that was it. No more, no less.

Interesting spin these guys are putting out here.

-- Gordon (g_gecko_69@hotmail.com), January 16, 2000.

Say goodbye to Big Oil! They've been jacking up the price and ripping us off for years. Now, the demise of their monopoly is only years away.

In an article in my local paper, a couple of engineers have designed a "fuel cell" that converts hydrogen into electricity. Their cell (18"x12"x4") can generate 2,000 watts which is almost enough to power a home. Hydrogen is clean energy, and can be made by a solar panel or wind power. This could enable people to get off the grid.

They said the auto industry will be using the fuel cell in the next five years. Next year, GE is coming out with the HomeGen 7000 which will run off of natural gas or propane, and eventually hydrogen. It's about time new tech has addressed the fossil fuel monopoly.

Investors can check out Plug Power, a company out of New York, which according to MSN MoneyCentral website, will make these fuel cells, and their stock could grow 10,000 percent over the next ten years. Can I borrow a couple grand from someone to get in early on this deal???

-- phoneman (bcrefrig@excelonline.com), January 16, 2000.

Plug Power has already been acquired by GE.

-- jeanne (jeanne@hurry.now), January 16, 2000.

That figures. Thanks Jeanne.

-- phoneman (bcrefrig@excelonline.com), January 16, 2000.

It's still going to require oil to deliver the propane or hydrogen to your home, and propane is very expensive. Wealthy people will be able to afford the unit, but it is out of reach for the ordinary homeowner. The natural gas company will make a killing and no wonder PG&E wanted to get into the distribution of electricity and natrual gas and not the production end of it. It won't do me or my neighbors any good, they are all on either propane of electric.

-- bardou (bardou@baloney.com), January 17, 2000.

bardou,

Hydrogen is produced from electrolysis of water which can be accomplished with electric current generated by solar or wind power. The story mentioned that the engineers are developing fuel cells for remote radio transmitters across Alaska which will run off of wind turbines. The genius part of the equation is that these guys have developed the "fuel cell" (similar to a battery) that makes electricity using positive hydrogen ions.

Getting hydrogen as the fuel source is not rocket science. It looks promising. Stay tuned.

-- phoneman (bcrefrig@excelonline.com), January 17, 2000.

Plug Power has a web site with photo of a unit that has been powering a home in NY for a couple of years now. The police station in Central Park(NY) is now powered by a fuel cell.

I am hoping that this will "liberate" us from OPEC eventually. Instead of financing WWIII in order to secure our energy supplies, the money should be spent on fuel cell technology...IMO.

A recent issue of Backwoods Home magazine had a cover story on fuel cells. They have a web site and post recent issues.... probably is on their site. I think it is www.backwoodshome.com or something like that.

-- jeanne (jeanne@hurry.now), January 17, 2000.