Oil & Gas Forums - Worldoils

From what I am seeing that more and more land rigs are being deployed again. This has to happen with the oil prices gaining and also the stock markets rising.

But these seem very impulsive investments. Much of the world says that there will be another slump as the financial stimulus that kept the markets active and soewhat afloat is drying out.

Any comments?

This is an extract fromhttp://www.reuters.com/article/GCA-Oil/idUSTRE58E2FI20090916

Evidence of an impending upturn in the world economy appears to be gathering but recovery will be slow and gradual, OPEC said on Tuesday, as the group left its world oil demand forecast for 2010 unchanged.

World oil demand was expected to fall 1.56 million barrels per day (bpd) in 2009 before rising 500,000 bpd in 2010, the Organization of the Petroleum Exporting Countries, which supplies over a third of global oil, said in a monthly report.

This is an extract from http://www.businessinsider.com/chinas-de…x-months-2009-9

China's demand for oil fell 5.4% in August from July, according a Platts analysis. This is the first month over month drop since March.

Refined product stockpiles held by Sinopec and PetroChina at the end of July were some 30% higher than the corresponding period of 2008 and had crept up 7% from a month ago, Chinese media reported earlier. At the same time, July oil products sales in China fell about 6% from a year ago and shrank 10% from June.

Refiners responded by cutting collective crude throughput in August by 1.7% from July to 32.56 million metric tons or 7.7 million barrels per day -- the first monthly reduction since February 2009. Crude imports were cut by 5.9% from July to 18.48 million metric tons or 4.38 million barrels per day in August.

As reported by Bloomberg on Sept 22nd, Aramco sees that there will be idle oil fields in 2010.

Global demand for oil is expected to rise by 1.27 million barrels a day, or 1.5 percent, next year, according to the International Energy Agency, not enough for Saudi Arabia to resume all of its idled fields.

I think the demand will not rise because of the following reasons :

1. The rising economy is not real. The fundamentals are still not strong.
2. The demand for commodities has dropped and will remain low. Consequently, the demand will remain low for another 2 years at least.

The following is from Reuters on the page : http://in.reuters.com/article/businessNe…-41341420090727

Quote:

World oil consumption will rise for the first time in two years in 2010 as a recovery in the global economy boosts demand, according to a Reuters poll of top oil-tracking analysts and organisations.

Unquote

What do you think will happen? Will the oil demand increase in 2010?
Please join in the poll and comment.