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By ST (anonymous) | Posted February 27, 2007 at 10:40:12
An important point (not mentioned but not to be missed) is the fact that OPEC (prior to the addition of Angola) also showed declines in production when prices were high in early 2006. Although it took several months for the production data to become clearer, the inability to meet the demand started showing up in the prices.
The other thing that gets hidden by some of the data is the amount of Natural Gas Plant Liquids (NGPLs or NGLs) that are 'inlcuded' in the production numbers as well as 'other liquids.' And there can be a certain amount of double counting...production of oil, some used for production of 'liquids' does not mean that the sum of both is the total production. in the past, this degree of minor double counting was pretty minor, but as other liquids must be produced to offset production declines, the total liquids numbers can be a bit of an illusion.
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