Industry at a glance

	Vol. 225 No. 6

US oil production is down 3% from a year ago. However, output is up in the Rocky Mountains, primarily in Colorado, Montana and New Mexico. Workover rig counts in the area are up 22.4% from this time last year. Internationally, OPEC members are producing well above their quotas, with the exception of Indonesia and Venezuela. Even so, UK Chancellor of the Exchequer, Gordon Brown, said he would press OPEC to raise oil production, in an effort to prevent inflation in Western nations. As oil prices surge, there is concern that effects will seep into consumer prices, offering unions the opportunity to press for higher wages. Oil prices are reaching $40/bbl, as violence in the Middle East continues. An oil terminal at Basra in Iraq and the Saudi office of a foreign oil firm were attacked in May, killing six people. As an analyst at Fimat USA noted, “It's become quite clear that the oil industry and oil infrastructure are in the crosshairs of insurgents in Iraq and terrorist groups.”